My Daily Options Trading Diary

[findvikas]

we are back above the critical support 5010, the best course of action will be to buy Nifty Future December and hedge it with 5200-5300 put for december

EDIT: My bad, I was thinking something else while writing it.. realized it later. You should hedge it with 4900-5000 put instead of 5200-5300 put.

 

[gb333]

u mean one should buy
NIFTY DEC Future @ 5071.05 &
NIFTY DEC 5200 put @ 224.95 &
NIFTY DEC 5300 put @ 292.60
am i right vikas?

 

[findvikas]

u mean one should buy
NIFTY DEC Future @ 5071.05 &
NIFTY DEC 5200 put @ 224.95 &
NIFTY DEC 5300 put @ 292.60
am i right vikas?

I have corrected myself, you should buy at the money or out of money puts to hedge it as the premium would be less. May be 4900-5000 put would be a good choice to prevent you from any expected/unexpected move on the downside.

 

[gb333]

ok.. vikas
But i dont understand the term
"buy at the money or out of money puts to hedge it as the premium would be less"..
i am a new trader.. kindly explain that how can i make premium less ?

 

[findvikas]

Kindly make the fundamentals of Futures & Options clear to you before you actually trade in them. Great power comes with greater responsibility and so are options.

Options are like token amount when you buying property, but it can also act like your home insurance once you already own a house.

Read more about it here
http://www.traderji.com/options/32889-basics-options.html

 

[findvikas]

Moderators...

I have just received this warning.. may I know which rule have I violated with that post?

 

[Traderji]

Moderators...

I have just received this warning.. may I know which rule have I violated with that post?

Your comment...

If you are doubting me then please do, its not that you are my wife and won't let me sleep with you if I don't show you my ledger...

To refresh your memory violates this forum rule:

We take the "Be Polite" rule very seriously. We do not tolerate any rudeness. Any member who is intentionally unpleasant or disruptive may be banned without warning. A decent communication protocol must be adhered to. Foul language and use of abusive words/photographs in posts/avatars/signatures/topics are STRICTLY prohibited. Even indirect use of abusive language (e.g. B****) will attract moderator action.

 

[Traderji]

Aditya too has received a warning!

 

[findvikas]

I really do not care who receive the warning, what matters to me why I did even after being polite and respectful to everyone. If I was "forced" to be rude and I did wrong then please feel free to close my account. Thanks for giving me everything so far. Goodbye!

 

[aditya14]

Aditya too has received a warning!

Oh come on why did you have to tell him that Big Boss...:rofl: