Low Risk Options Trading Strategy - Option Spreads

[traderjaya]

see this link
http://www.traderji.com/options/24278-options-trading-strategies-3.html#post226402

 

[register1803]

thanks for your advice but i am looking for a limited risk and a profit of 100-120 point for any direction of market is there any MODEL available according to our requirement.
THANKS IN ADVANCE

 

[traderjaya]

thanks for your advice but i am looking for a limited risk and a profit of 100-120 point for any direction of market is there any MODEL available according to our requirement.
THANKS IN ADVANCE

See this link below and pick the one that fits your risk appetite.

http://www.traderji.com/options/24278-options-trading-strategies.html#post226355

 

[vssoma]

dear,
can some one( dan, iam expecting from U) tell me what below chart is telling....with explanation about OI

 

[DanPickUp]

dear,
can some one( dan, iam expecting from U) tell me what below chart is telling....with explanation about OI

Dear Vssoma

Those two threads do that already:

http://www.traderji.com/options/66083-put-call-options.html#post638505

http://www.traderji.com/derivatives/65185-trade-options-data.html#post628282

DanPickUp

 

[vssoma]

Dear Vssoma

Those two threads do that already:


DanPickUp

dear,
thank you and pls. check this link for my following Q:

 

[sundeesh]

@ whoever can answer this,

Can i take this strategy to trade intraday, if i am able to predict that Nifty (Indian Index) is going to lose 10pts ? or maybe when i think it will gain 10pts and have no idea beyond that ? What r the precaution to take ?

I am planning to start using this strategy few days (10 ?) before march contracts end, so that i will get to trade with low premiums.

thanks in advance.

 

[DanPickUp]

@ whoever can answer this,

Can i take this strategy to trade intraday, if i am able to predict that Nifty (Indian Index) is going to lose 10pts ? or maybe when i think it will gain 10pts and have no idea beyond that ? What r the precaution to take ?

I am planning to start using this strategy few days (10 ?) before march contracts end, so that i will get to trade with low premiums.

thanks in advance.

What was your intra day spread order with your broker or what did you place on your platform ?

 

[sundeesh]

What was your intra day spread order with your broker or what did you place on your platform ?

sorry i dint construct my sentence properly,

i mean to say, as of now i haven't invested anything using this strategy, Can i take this strategy to trade intraday, if i am able to predict that Nifty (Indian Index) is going to lose 10pts ? or maybe when i think it will gain 10pts and have no idea beyond that ? What r the precautions to take ?

I am planning to start using this strategy in a few days (10 day? meanwhile i will finish reading this thread fully) before march contracts ends, so that i will get to trade with low premiums. i am not excepting more then Rs170 Net profit that credits in my trading account, for squaring 1spread/a-pair of-puts. i have to pay a brokerage of Rs.35 per lot in it.

please advice me everything in detail.

thanks in advance.

 

[comm4300]

sorry i dint construct my sentence properly,

i mean to say, as of now i haven't invested anything using this strategy, Can i take this strategy to trade intraday, if i am able to predict that Nifty (Indian Index) is going to lose 10pts ? or maybe when i think it will gain 10pts and have no idea beyond that ? What r the precautions to take ?

I am planning to start using this strategy in a few days (10 day? meanwhile i will finish reading this thread fully) before march contracts ends, so that i will get to trade with low premiums. i am not excepting more then Rs170 Net profit that credits in my trading account, for squaring 1spread/a-pair of-puts. i have to pay a brokerage of Rs.35 per lot in it.

please advice me everything in detail.

thanks in advance.

hi,

this may be difficult intraday. reasons:
1. time decay is not significant intraday.
2. spread does not expand or contract that much on a 10 point move.
3. with current system, you have enter both legs of the spread order separately which will be a problem for a 10 point profit move on spot.

credit spread works great when given enough time.

If you think you are good at relatively predicting a 10 point move on nifty, you could :
a. trade deep in the money options. [better delta]. use SL if proven wrong - direction wise.
b. write call/put to scalp a few rupees [far OTM if required].
c. OR use your 10 point prediction to leg into spread trade:[ eg. you think nifty will fall 10 points, buy put and then after the fall sell put at a higher strike to make your spread better.], but as said spread works great with time.

all the best.