My Daily Options Trading Diary

[scorpio77]

Hi Vikas,

Thank you for sharing your strategy.

Can you pls illustrate this with an intraday chart with 13,21 instead of weekly explaining the entry and exit points?

Yesterdays would be great as we had opportunities both ways.

Thanks,

Scorpio

My setup is simplest...
I personally use 13,21 SMA which works great on any interval.

My way to enter/exit is not at crossovers but when you have 2 continuous bars made their lows lower than 13MA and enter at the 3rd bar lower than 13MA

Similarly I ride the trend until you have 2 continuous bars made their highs higher than the 21MA and exit at the 3rd high bar

Try it out for once and you will be surprised to see the accuracy over normal periods.

Along with that I keep an eye on NSE TAME chart to see the volume and candlestick pattern
http://www.nseindia.com/ChartApp/ins...ainpageall.jsp

 

[findvikas]

Yesterday there is only one opportunity... BUY BUY BUY!!!
Tomorrow we should touch at least 3% , next resistance is available only at 4890 which once taken can take us back to touch 5000 by Monday.

By no means one should SHORT unless it cannot trade above 4662-4675

 

[scorpio77]

Hi Vikas,

Yesterday, you did short the market (options) and covered it just in time.

Was that based on the same strategy?

Yesterday there is only one opportunity... BUY BUY BUY!!!
Tomorrow we should touch at least 3% , next resistance available is only at 4890 which once taken can take us back to touch 5000 by Monday.

By no means one should SHORT unless it cannot trade above 4662-4675

 

[findvikas]

Partially yes... see the picture

Nifty was rising without any volume... I could not fetch the volume chart for intraday now as NSE TAME works only in market timings... but it was rising without any volume and then came the bearish hammer and then outside hanging man candle (see in the picture) ... at the same time Slow Stoch was at over bought region and could not sustain their

which confirmed me to short and then a trade above 21MA with good volume confirmed that bulls are coming back in action so I booked my profit and stay out .... I tried again but failed to see the BULLISH hammer and beaten by it with a loss of 10points

 

[findvikas]

DOW closed above 10000 @ 10005.96 with a solid gain of 2.08% ... just 1.2% below 52 weeks high of 10,119.47 :yahoo::yahoo:

History confirms that we usually have 150% of the DOW rise... so 150% of 2% is 3% :yahoo::yahoo:

a close above 4900 is very much possible.... long waloon khushiyann manaoooo...

 

[gbiradar]

Partially yes... see the picture

Nifty was rising without any volume... I could not fetch the volume chart for intraday now as NSE TAME works only in market timings... but it was rising without any volume and then came the bearish hammer and then outside hanging man candle (see in the picture) ... at the same time Slow Stoch was at over bought region and could not sustain their

which confirmed me to short and then a trade above 21MA with good volume confirmed that bulls are coming back in action so I booked my profit and stay out .... I tried again but failed to see the BULLISH hammer and beaten by it with a loss of 10points

So if I understand u correctly... U can see these bearish hammer, hanging man candle on NSE TAME page along with 13,21 day MA?

And "then came the bearish hammer and then outside hanging man candle "
gives u bearish signal... is there any bull signal of this type? or once it moves above 21MA it is confirmed? How about volumes? How do you compare volumes? I mean u compare it with previous day?
And do u consider only options volume or overall market?

Thanks again for valuable information...

 

[findvikas]

that I will tell you yesterday with live chart

for candlestick patterns... trained your eyes to read them as you see them
http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:candlestick_pattern_

 

[findvikas]

. U can see these bearish hammer, hanging man candle on NSE TAME page along with 13,21 day MA?

You can see volume & candlestick on TAME... for MA & live chart I use google.com/finance

.
How do you compare volumes? I mean u compare it with previous day?
And do u consider only options volume or overall market?

for intraday you compare that with volume of previous bars and average volume so far for the day.... compare the volume of same security... options will follow the underlying security's value so I do not pay much attention to the options volume.

 

[MALTESEBULL]

Hi,

I have tried various ways to double my money in the past and taking stock deliveries is the classic method I started with - failed as it took long time and volatile market can eat you!

Then I tried Nifty Futures, failed - blame it on volatile market.

Finally came to Options and realized that it could be good tool. I have been working on the below strategy to join the millionaire club soon.

Here is the strategy I am working on...

1) find a liquid stock with high volumes , like suzlon or Unitech
2) make sure that the stock is less than Rs. 200 in Spot value and their near money call is less than Rs. 10
2) find their support & resistance levels
3) buy near money put when the stock reach near resistance level, and switch to call when it reach near support level.


Experts please comment on my strategy.. I am not hedging my positions and keeping a SL of 10% or gain of 50% from every Position I take... I will follow 10/50% rule strictly to close my positions.



I am also starting to paper trade in options, here is my PAPER TRADE diary. I will update it regularly.
http://spreadsheets.google.com/ccc?key=0AsC1qV6Wtd1xdDh1MzN6MFh5VzNhclBsV1RaQXJHVHc&hl=en

Hi Find.

Wot strats are you using in options?

I'm a short Strangler player on the european index. Both legs are DOTM and i cant ever get assigned on positions! I let the Theta milk the money in.

I sometimes do wot i call split level short strangles with dfrrt xpiry months.

I trade where the market will NOT go and not where the mrkt may go.
The grt majority of players place positions where they think mrtks will go and this puts them at grt disadvantge.

Rgrds

John

 

[VJAY]

Dear vikas ,
If you post todays trade with chart and description its better.....please do it atleast for today......