JACKPOT or NOTHING!!!!! Amazing Technique on Last 5 min of an expiry

[copypasteaee]

What i meant was algo machines calculate the settlement price (wtd average of last 30 minutes) Say at 3.25 pm or so the settlement price is coming around 8002 then OTM options above and below 8000 will be valued zero. So the algo machines sell these OTM options at what ever rate they are available. So in last 5 minutes the wtd average do not change much and they pocket all the money available on the table. This is for institutional players or HNIs who are having liquidity in hand.

I hope this clarifies what i meant.

 

[manishchan]

What i meant was algo machines calculate the settlement price (wtd average of last 30 minutes) Say at 3.25 pm or so the settlement price is coming around 8002 then OTM options above and below 8000 will be valued zero. So the algo machines sell these OTM options at what ever rate they are available. So in last 5 minutes the wtd average do not change much and they pocket all the money available on the table. This is for institutional players or HNIs who are having liquidity in hand.

I hope this clarifies what i meant.

I understand.... and I didnt say the method is wrong or not correct. Wht I'm trying to say that this may be a good play for the institutional players but the crowd here in TJ here is of retails most of which are unable to make consistent profit even in following less risky method. Now look at the thread heading and the post of the owner..... is he inviting institutional traders to trade this method ? I don't think so..

So again.. my point being .... instead of risking money and mind over this kinda of last 5-10 mins haywire trade... one should invest money and time for the proper intra/positional trades with some method. One can trade this method wid 50000 lots if he/she wishes to but whtz the point in making 2-3k.. dt 2-3k can be made wid simple methods and low risk too.

Trading (for retail serious traders at least) is a game of keeping risk low and being consistent... like cricket.. you can try hitting sixes and fours on every ball and you can get lucky but if you want last long... you have to know ur risks and play calmy and consistently.......... (anyways I dnt want to argue dtz why was cutting the conversation above.. this is my last post in this thread)

 

[Somatung]

As the thread owner is open for all kind of comments about what is posted from him, here my two cents which do value for me and nothing more and nothing less:

To me it is not needed gambling in the last few minutes in the expiry. IF I have that wing because of what ever reasons, then it is an other game, but doing it the way described is not my peace of cake. If I have that wing, then it any way would also not be in the quantity of 50'000.

As algos can go for slightest wins/scalping, such trades are surely more for those guys and I do not know any small boy which is doing algo trading from home.

Any way: All those ideas about the quick money with low investment, traded on a constant level day by day at any time, are better to handle for non retailers, as most retailers do not have the sources and support in the background to stand the game for a longer period. If doing that gamble just once a month is like going once a month to a casino. So either the person who is doing that gamble once a month with options is called a trader nor the one who goes one in a month to a casino is called a professional gambler.

Most here are retailers and only a few are trading under the above mentioned circumstances. As I had contact with both through PM (Copypasteaee and Manishcan), I clearly can say that both are successful by what they do. CP is successful with option trading and Manishcan is successful with future trading.

Take care / Dan

 

[bpr]

Re: JACKPOT!!!!! or NOTHING..... Amazing Technique on Last 5 min of an expiry

Hi Folks,

Firstly thanks to Traderji for giving me enormous knowledge on Stock Markets, Analysis etc. Out of which I am sure I may not be using even a 1% in practice but put my conscious efforts to improve my trading practices.


I have been observing the trading on options during the expiry day to be power packed. 1 out of 100 strikes gain and rest of them just evaporate their premiums and leaves us with empty handed.


But based on my observation and the practical implementation I have made i am sharing this to the fellow boarders.

Technique:

(This is not a sheer technical analysis though but just a smart trade)

This strictly needs to be followed on the very last 5-15 min of the expiry day session.

Scan for the scripts which are expiring at the round figure of the contract. For eg. I am sharing my own experience in previous expiry where i gained huge some in Nifty options. What I did was buying 8000 CE at 10 paise for Rs.1000 which gave me 200 lots of 7900 CE.

My perception was since nifty has gone down very badly but there are high chances that 7900 would not be broken. I could have got 7900 PE too at a meager amount but some how it didn't strike me that time so I stayed away from it. My risk is 1000 rupees. The order price triggered and later it went all the way to 10.7. But I have booked my profit some where around 8Rs. Which gave me almost 80 times of what i had invested. My RR ratio proved to be 1:80 this time. But in reality could be 1:x(1) x could be anything based on where it closes for the day or you book your profit. But in case of any losses like expiring lesser than that better avoid square off to get rid of brokerage charges.

It might look like a sheer luck factor, but there are only 10% chances that they expire exactly at the round off strikes like (Nifty - Closing exactly at 7900) or BNF closing exactly at 15400 or so.


WORD OF CAUTION:

Do not risk hefty amounts on these trades expecting exponential gains. Just restrict them to 2000 or 1000 or even less based on your appetite. Since you would get them at pennies. Even small amounts give you huge lots like the way i mentioned in my experience. I never imagined I could get 200 lots of nifty ce at Rs.1000.


Quotation: There is a quotation in my mother tongue which says,

I will try to grab the mountain with the help of my hair strand. Either mountain should be mine or my hair strand would be lost. :lol:


Experts or Novices or Mediocres can comment if you like, dislike, support or object.

Cheers!
Kishore

I am curious about what is the winners to looser ratio about this method.
If i have to guess I will go with 1:99

 

[mukkara99]

Re: JACKPOT!!!!! or NOTHING..... Amazing Technique on Last 5 min of an expiry

Can any body explain in a simple manner

 

[kishoregudipati]

Targetting @ .05 for Nifty Oct 8150 CE & 8150 PE. Lets see.

Max Risk is 1000 Rs. for buying the calls and 100 Rs. for brokerage. Condition: Square of what ever is there in the money. :thumb:

 

[kishoregudipati]

Already got good money in Reddy Labs placed for an order of 12500 @.05 for 3100 CE. Got only 1500 and squared off them at 2.7. Max was 4.2 anyways, @Rs 75 I got 3975 excl brokerage

Targetting @ .05 for Nifty Oct 8150 CE & 8150 PE. Lets see.

Max Risk is 1000 Rs. for buying the calls and 100 Rs. for brokerage. Condition: Square of what ever is there in the money. :thumb:

 

[kishoregudipati]

Only Put got placed and expired worthless. 500+30 Rs loss. Lets wait for the next time.

This expiry,

Profit 3925 - Reddy Labs
(530) - Loss on Nifty 8150 PE

Net Profit 3375 out of net investment of Juss 75Rs.

Targetting @ .05 for Nifty Oct 8150 CE & 8150 PE. Lets see.

Max Risk is 1000 Rs. for buying the calls and 100 Rs. for brokerage. Condition: Square of what ever is there in the money. :thumb:

 

[cachu]

My brokerage charge is 50Rs per trade per lot. Say i get 200 CE lot at 0.1. So total investment is 1000. And if we consider trade is failed and i dont cover and it expires. Still i need to pay my broker 200 lot x 25=5000 RS right?

 

[mastermind007]

higher STT if in the money option not squared off

Why is it important to square off ITM (in the money) options rather than let them expire on the expiry day? read in the link below.

http://zerodha.com/z-connect/queries/stock-and-fo-queries/stt-options-nse-bse-mcx-sx

No offense to TraderRavi or any one else but I think differently and feel that revealing my thoughts might be of some help to someone. I know it does not solve the problem-at-hand immediately but if I manage to get enough folks motivated, we could take this to Court and have the tax thrown into the Ganga.

In my opinion, this pressure to squaring-off actually tantamounts to deception.

Remember that, Option is a Contract and the expiry-time is very important subject-matter-ingredient of the contract. So, when the Buyer purchases it, he has purchased a right to hold it all the way until the end (Without any extra charges being laid against it)

Since India follows European Model, Option-Purchaser can only know the actual TRUE worth of his Option only at its expiry.

At all times before that, it is sheer speculation (guesswork) on part of the Option-Purchaser and the Option-Writer.

One may think that his option is ATM or ITM at 3:20 PM on expiry day but it may turn out to be OTM and vice-versa.

Perhaps an analogy will help. Indian Railway operates Duronto express between few metros and it runs with zero official halts in the middle.

Passengers books ticket in Duronto from CST, Mumbai to Howrah, Kolkata and has to pay full fare between two points. On the appointed day & time, Passengers board the train and it rolls out of Mumbai as expected.

After 20 odd hours, the train halts at some phantom station 2 kms before the Howrah and announces for everyone to get down. If passengers do not get down now and wait for train to get to Howrah, they will have to pay the West-Bengal-Super-Special-Duronto-Jal-Moori-Burning-Red-Chatni-making tax.

At expiry, exposure to risk for Option-Sellers is only from ATM and ITM as OTM is risk-free anyway. Even within that, risk in ATM is negligible and serious risk exists only for ITM.

By saddling ATM/ITM Options with heavy taxes, the Option-buyer is de-focused from his contractual right and scared into squaring off his winning position and secure whatever he gets by way of compromise.

With 99.9% Option-Purchasers guaranteed to square off, Option-Writers with outstanding write positions are guaranteed to have market environment protected for them.

If some maverick Option-Purchaser holds ITM all the way through, whatever extra he gets from corresponding Option-Writer will be taken away by NSE.

As a bonus, most Option-Purchasers than will work for the Option-Writers free of cost to scare off other Option-Purchasers.