My Daily Options Trading Diary

[NiftyFantasy]

For the next week I personally think that sell on highs and cover (not buy) on dips can be a good strategy... ur opinion vikas???

 

[findvikas]

Weekly Analysis

Last two weeks opened and closed below the 13w MA of 4843 which gives a clear positional sell signal around 4830 levels to get at least 200 points profit in the coming week with a strict SL placed around 4850

Daily Analysis

Daily chart is fighting back to reverse the trend but will face heavy resistance around 13d MA of 4854. Unless you have 3 bars making their daily highs above 4854 then its a confirmation of a trend reversal in daily chart.

Volume Analysis
There was almost no volume in the week ended on 30th Oct but positional Short had been created way before that and there has not been enough short covering to reverse the weekly trend.

Similar pattern in daily chart... more selling than buying


One can trade Nifty with these levels in mind


Sell @ 4800 average till 4840 SL at 4850
Buy @ 4700 average till 4673 SL at 4668


PS.: I am still experimenting this method of trading with the simplest setup of Fibonacci period of MA so you might want to be cautious if you want to trade with this.

 

[eYogi]

Dear vikas,

I am holding 4600 put at an avg rate of 67rs. Could you please advice me what I shoud do next week.

 

[scorpio77]

Hi Vikas,

A few questions on the below chart.

Around 31st Aug, If we wait for 3 bars above 21 MA then we should be buying at 4500

If we sell when it cross below 34 for 3 bars then its 4900-4950 at the red arrow right? or am I reading it wrong here?

On 2nd April, just one bar is above 21 MA, how does this justify buy?

Pls explain.

Any intraday chart for last week with possible trades as an illustration would be a huge help.

Cheers,

Scorpio

Here I am using 3 Years weekly chart and see how we get into the trend even before crossover came. I am using 21,34 as the chart is for a long term trend.

Hope the picture explain it all

Some text missing in the picture...

"It kept on testing the resistance but never broken it on higher side for continuous 3 bars"

 

[gbiradar]

Dear vikas,

I am holding 4600 put at an avg rate of 67rs. Could you please advice me what I shoud do next week.

I think u can hold ur shorts until we cross 4860 decisively...

 

[findvikas]

we are buying and selling "at" the third bar... not after 3rd bar..

Around 31st Aug, If we wait for 3 bars above 21 MA then we should be buying at 4500

We do not buy after 3rd bar is complete but wait for 3rd bar as confirmation and buy anywhere around the lowest of previous bar and buy it there. so third bar's open and low was 4194 we buy near this level

If we sell when it cross below 34 for 3 bars then its 4900-4950 at the red arrow right? or am I reading it wrong here?

the third bar opened at 5316.. which was not below 34ma so we wait entire week until it breach the 34ma around 5100 and once it did.. we sell around that level or anything around the highs of previous bar (5392)

On 2nd April, just one bar is above 21 MA, how does this justify buy?

thats not clearly visible on chart but if you see the values... the 21ma was lower than 2836 which was the highest point of two bars earlier on 20 march. and we buy anywhere in the third bar as it opened itself higher than the 21ma

Any intraday chart for last week with possible trades as an illustration would be a huge help.

I will try this.. and do it sometime.

 

[findvikas]

Dear vikas,

I am holding 4600 put at an avg rate of 67rs. Could you please advice me what I shoud do next week.

You had a good opportunity on friday to sell it near 77 .. now you have to wait till monday. personally I am in favor of bears but you need to have a SL.. if you have just 1 lot then you can take little risk and average it when spot is around 4820 but book it if spot cross and sustain 4850

little risky so think twice before doing this.

 

[findvikas]

someone asked me on some other thread about a chart of ACC where the chart was not giving very clear directions

here you go..

there were times when the stock went from random walk zone where both MAs are near the same values... in such cases we need to see if there is enough gap in MA around 2-5% of the values if not then look for bigger trend in weekly chart or bigger MA levels (34,55) to decide the position. one can avoid any position in this case as well.


Still this method generate more reliable signals than crossovers of any period on the same chart.. crossover had most of them as whispaws or SL hit.

Hope this helps.

 

[findvikas]

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

John,
I have updated the first post of this thread with my strategy. That was my past strategy when I was not sure what strategy means lolzz

 

[findvikas]

BTW is there any AFL expert to write an AFL for this strategy for back testing? otherwise I will learn the AFL tomorrow... I hate learning new languages now after all these languages

C,C++,VB,C#,PHP,PERL,ASM,LINQ,SQL...grrr... sometimes I forget my native language