Ideal Option Strategy (IOS)

[mohan.sic]

Wrong answer dear Somatung! it(IOS) exists.
"It if exist, what would be your next question?" YOU ASKED.
What is its name? my next question would be.
Dear Somatung, there two are type of people, who asks the question, a pupil or a teacher. And a question do not tells that the person asking is, a pupil or a teacher.

You know it exists but dont know its name ?

It seems you are third type ( combo of 2 types of people you mentioned.)

 

[umeshmandal]

You know it exists but dont know its name ?

It seems you are third type ( combo of 2 types of people you mentioned.)

Combo? You mean he is a Pupil+Teacher= Preacher or Poacher ! Sorry did not mean to hurt anyone! Posted just for fun !

Now coming to IOS, I hardly know anything beyond basics about Options and almost nothing about Option Greeks. Having said this I would like to say or rather ask : The serial 4 of highlights of IOS posted in Post 1 of this thread says : "It must be Intraday strategy!"
When we have in mind to trade an option Intraday, why cant we trade it like any other Stock? Follow the chart of the underlying Index or security and Go long in CE or PE of at the money options ! Wouldnt the advantage be that even a Black Swan event can do only limited damage!

 

[mohan.sic]

Combo? You mean he is a Pupil+Teacher= Preacher or Poacher ! Sorry did not mean to hurt anyone! Posted just for fun !

Now coming to IOS, I hardly know anything beyond basics about Options and almost nothing about Option Greeks. Having said this I would like to say or rather ask : The serial 4 of highlights of IOS posted in Post 1 of this thread says : "It must be Intraday strategy!"
When we have in mind to trade an option Intraday, why cant we trade it like any other Stock? Follow the chart of the underlying Index or security and Go long in CE or PE of at the money options ! Wouldnt the advantage be that even a Black Swan event can do only limited damage!

No. i just said pupil+teacher

 

[chandrujimrc]

Dear friends,

Pl stop fighting and come to the main subject.

 

[chandrujimrc]

Dear MacDcosta,

Does it (IOS) exists?
Please share your opinions, regards.

 

[MacDcosta]

An other boring post of yours. Any thing special or new you may have to post here on IOS trading which would help the members here to get an idea about what you want to tell? There is an other member here which post the same way like you against me under an other ID. I know what he post and I am clear about his paper trading which has good value.

Why don't you post such an all the time working ideal option strategy here instead insulting others?

I am very clear what is posted here in this forum from who and I know what has value and what is just a bla bla. You are so far bla bla, as you not have proved any thing here so far on your idea of IOS under this ID of yours.

Coming up with words like yours, but not prove it with any live example is just rubbish. Prove what you want to tell from your side, as you started the thread and not me. As I not started the thread, I am free to hunt you when ever I want.

Good luck to your trading and take care / Dan

Dear Somatung, Its very unfortunate that you felt yourself insulted because of me and shall like to say sorry if you are so hurt. But there were, no such intentions. You tell me what you would have done if you would have got IOS? Would you had post it on the forum?
Let me exchange some more information with you regarding IOS. It has got a name "sandeepam" named after an Indian guy who invented it, but absconding since it was disclosed to some American group, whom he tried to sell his formula e. This IOS has got a drawback that it is workable to American type options only. This IOS is lifeline of the market operators throughout the world. Some claim that its name itself is a code of IOS. So, what you say Dan, isn't it interesting to know about IOS? its not just bla bla, its something different.

 

[mohan.sic]

Dear Somatung, Its very unfortunate that you felt yourself insulted because of me and shall like to say sorry if you are so hurt. But there were, no such intentions. You tell me what you would have done if you would have got IOS? Would you had post it on the forum?
Let me exchange some more information with you regarding IOS. It has got a name "sandeepam" named after an Indian guy who invented it, but absconding since it was disclosed to some American group, whom he tried to sell his formula e. This IOS has got a drawback that it is workable to American type options only. This IOS is lifeline of the market operators throughout the world. Some claim that its name itself is a code of IOS. So, what you say Dan, isn't it interesting to know about IOS? its not just bla bla, its something different.

The Right To Exercise
Owners of American-style options may exercise at any time before the option expires, while owners of European-style options may exercise only at expiration.

It means the strategy works if you can excersie your right any time. It doesnt work if yo dont have the right, So is it option buying strategy?
Its not making money on Time decay.Then It should be making money on volatality.

1) Is it something like buying a option pair with low time values and as the price moves towards a direction time value in the pair increases.

2)Buying deep ITM options with least time values, then operating the stock towards a direction and excercising their right.

And if this IOS involves any kind of operating, then we cant call it ideal for us.
Because you mention this as Lifeline of operators, pls clarify - Is this strategy for operators or people like us.

 

[kcsusha]

Dear Mac DCosta,
It is very unfortunate that people come to their conclusions and crucify the man even
before finding out whether he is at fault or not. This is happening in all the forums and
it is not new to this one. Even a guilty man is given an opportunity to explain his stand
fully before giving judgement. You have not even started saying anything and people have jumped to various conclusions. Let it be a fake ID or whatever it is, let us give chance to whosoever person who comes to this forum to explain his strategy and after
fully knowing his strategy, then only it will be reasonable to comment. So let us give
a chance to Shri DCosta to fully explain his strategy and then no body can stop anybody
from commenting or criticizing or leg-pulling him. Shri DCosta please go ahead and
explain your strategy so that Members can benefit from your strategy. Who knows
your strategy may prove to be a holy grail? The persons who are criticising even before
a strategy is explained may be very learned persons, but please explain for
AAM AADMI like us.

 

[bapu4]

i think we should get to business.i have a very good finding but like all others barring some experts I dont know whether I should take this trade,see TATASTEEL june 300CE is quoting at 49.5(a lot of 500)it vola is highst 51.9 can i safely sell it tomorrow (monday)? without any risk?I think there should not be any .I invite experts like somatug/Danpick to comment upon this.I hope the answers will be straight and not like options.

 

[Somatung]

i think we should get to business.i have a very good finding but like all others barring some experts I dont know whether I should take this trade,see TATASTEEL june 300CE is quoting at 49.5(a lot of 500)it vola is highst 51.9 can i safely sell it tomorrow (monday)? without any risk?I think there should not be any .I invite experts like somatug/Danpick to comment upon this.I hope the answers will be straight and not like options.

Dear Bapu4

I not can give you any direct trading advise for any of your personal trades, as this would be against forum rules. It is like giving a trading call to you. What I can do is analyzing the trade you plan and point out a bit the chart and some facts seen in the option matrix. If you want to take the trade or leave the idea after this analyzes is your free choice.

Here the needed screen shoots for the current analyzes:

Chart: http://i57.tinypic.com/sdl6qw.png
May option matrix: http://i62.tinypic.com/iynf28.png
June option matrix: http://i57.tinypic.com/2dr6qa1.png

As you want to sell the mentioned June 300CE in TATASTEEL. I guess you are bearish on the script. On 21 May 2015 there was a huge sell off in the script, so the price may does not much move further down in the coming few days. The chart shows a possible range between 350 to 333. Further can you see the gap down, which possible will be closed in the near future.

The 300 June call is deep itm. Deep itm money means time decay is not of much interest to this option instead the play is on the intrinsic value. So every move up and down in the script will be clearly seen in this call because of its high delta. High delta means that every move in the script has a strong impact to the intrinsic value of this option.

Next points:

The IV on those deep in the money call is very high compare to the IV on the itm and deep in the money puts. This could be a sign that some body is a bit nervous and expect a coming up move in the script. IV will decrease as the option gets closer to expiration. So even if you profit from a decrease in the IV, you will face the risk of a possible rise in the option value through an up move in the script. This risk you have to understand and you will need a plan how to reduce your risk when market jumps against your position. Such a jump could happen over night, we never know it.

If you further look at the current OI in the May option matrix, you will see that Max OI is with the 340 put and the 380 call. Also this could indicate that the script for the moment the down move has seen.

The max OI in the June matrix is at the moment with the 330 put and the 350 call which is the range I mentioned I see on the chart.

Take care and have a nice Sunday / Dan