need help in option(fno)!

[amit_shriv]

Hi Amit

If you have time then please throw some light on OI And Premium.
I usually use active call option from nse website.

Thanks

Hi VICKY,
main thing which I see is Implied volatility. I look for premium becasue I am selling the option so I want to collect good premium. OI is to be with the trend.
If OI is incresing, Volume is increasing and price of underliying is inceasing , then I sell call option.

Amit

 

[gopii]

Dear Amit
thks for the replies and highly appreciate yr strategy. rqt pl could u give some more info how the OI,volume and the price of the underlying (in this case nifty) helps in yr process,
rqt some more details please.
thks
b rgds
gopii

 

[narayan78]

Hi VICKY,
main thing which I see is Implied volatility. I look for premium becasue I am selling the option so I want to collect good premium. OI is to be with the trend.
If OI is incresing, Volume is increasing and price of underliying is inceasing , then I sell call option.

Amit

hi Mr.Amit
u r strategy is interesting, could u explain how u r able to sell a call option when there is increaing volume,OI,and underlying price.(if the underlying goes on increasing what will happen) how strong is u r strategy!.

thanks for great help!

 

[amit_shriv]

Dear Amit
thks for the replies and highly appreciate yr strategy. rqt pl could u give some more info how the OI,volume and the price of the underlying (in this case nifty) helps in yr process,
rqt some more details please.
thks
b rgds
gopii

Thanks Gopii.
Sorry for late reply I was out of station enjoying weekends.
For my OI, volumne and price are secondry but I don't ignore them. I see first the implied volatility becasue this help me get the good premium. OI and volume are imp. because this is where the maximum activity is going on. Price is for been with the trend. I sell that option which are going with the trand. for example if market is going up I will sell call and if market is going down I will sell Put.

Hope this clears your doubt.

regards
Amit

 

[amit_shriv]

hi Mr.Amit
u r strategy is interesting, could u explain how u r able to sell a call option when there is increaing volume,OI,and underlying price.(if the underlying goes on increasing what will happen) how strong is u r strategy!.

thanks for great help!

Hi Narayan78,
Hope the above clarification clears your doubht.

About how storng is my startegy for that le me tell you one thing I am making profit 7-10 % per month with this strategy.
in starting this strategy is litle bit complex.

regards
Amit

 

[narayan78]

hi Mr.amit,


can u explain about implied volatality and u r strategy with an example.

since i am concentrating more on options it will be more useful. thanks

 

[amit_shriv]

hi Mr.amit,


can u explain about implied volatality and u r strategy with an example.

since i am concentrating more on options it will be more useful. thanks

If market is moving up I find out the call option which has high impied volatility. let say if market is at 3670 and call strike price 3700 has high implied volatility then I will sell this call option and wait for market to reach around 3700. If market turn around good you keep the premium. if market is moving in same direction then I Buy Nifty Future aroung 3700.

 

[SGM]

Price is for been with the trend. I sell that option which are going with the trand. for example if market is going up I will sell call and if market is going down I will sell Put.

Hope this clears your doubt.

regards
Amit

Hello Amit

From what i understand from your posts you are betting against the current trend and not following it.

You have said
For example if market is going up I will sell call and
Here you are shorting calls in an uptrend!

if market is going down I will sell Put.
Here you are shorting puts in an downtrend!

Its good that you are using hedging with nifty futures as risk management !

in starting this strategy is litle bit complex.

As for u r methods being complex ........ well maybe with time and your consistant efforts (by the way of posting in this thread) we all will also be able to use your methods easily as you are using them.

Best wishes for your profitable trades.

Regards
Sanjay

 

[amit_shriv]

Hello Amit

From what i understand from your posts you are betting against the current trend and not following it.

You have said
For example if market is going up I will sell call and
Here you are shorting calls in an uptrend!

if market is going down I will sell Put.
Here you are shorting puts in an downtrend!

Its good that you are using hedging with nifty futures as risk management !As for u r methods being complex ........ well maybe with time and your consistant efforts (by the way of posting in this thread) we all will also be able to use your methods easily as you are using them.

Best wishes for your profitable trades.

Regards
Sanjay

Yes you are right but then this is my style . I am betting against the trend and I am not following the trend. I just see what the trend is and go against. I am using Nifty Future to protect my position. I wait till expiry and keep the premuim
With this method you don't need to be correct indetermining the trend. In any case you keep the premium.

Thanks for the wishes Sanjay and same to you.

 

[SGM]

Hello Amit,

Using your technique, suppose I were to start a fresh trade tomorrow.
I would be selling 5 Puts SP 3650 and 5 Calls SP 3700 and pocket the premium for all 10 options contracts. After that I will set 2 stop loss orders

1. to sell nifty futures at 3650 and
2. to buy nifty futures at 3700.

Is this what we have to do to initiate the trade?

Can you also please tell me what are the margin requirements?

Regards
Sanjay