NIFTY 50 future TRENDS

[Smart_trade]

Having traded options ( writing ) for number of years my observations are as under :

1) If one is selling nifty options and trying to protect by taking a position in futures, one looses lots of points in " protecting " the option positions.....so by end of the month one does not make more than 100-120 points max.....but one is open to lots of risk.....gaps, global markets......

2) Option trades DO NEED STOPS....it is not that we write and ferget....they also need close monitoring.

3) The protecting options by futures works great in theory....but in practice and markets volatility.......not easy....and in case of sudden gaps you end up having options and futures both bleeding you......my experience : I used to trade huge quantity in selling options ( straddles ) but very rarely I could make more than 60-70 points .....not worh all the hassles.....much better off with futures....

But learning is continuous....I am willing and eager to learn better ways of selling options....

Smart_trade

 

[EagleOne]

ST, you must be selling index options, I presume?

 

[Smart_trade]

ST, you must be selling index options, I presume?

Yes , I used to mostly sell Nifty Straddles....plus do some covered calls in RIL,SBI...delivery haath se chhut jane ke baad selling puts.......maal gale mein aane ke baad selling covered calls.....

ST

 

[essem]

yes only option writing works close to expiry...

 

[EagleOne]

Yes , I used to sell Nifty Straddles....

ST

Then you are right, my dear big brother. You have much to learn about option writing. Cause through my experience (zero compared to yours) I still maintain that index playing is OK for intraday or very short term, but not for the long run. And not at all if one is thinking of doing some sort of strategic trading.

But sorry, I can't be of much help to a master trader like you in that as I am also learning with big red L plate on my head.
However, there is a guy among us (you know him) who recently did a brilliant option writing on both sides of SBI along with playing with its futures. And all 3 legs gave him profits. Very good profits, indeed. I can vouch for it as I happened to witness a little of the moves in real time for him, as he's also in the job, and would call me from office to check price. I will not name him, cause I think he doesn't like to be mentioned when it comes to making profits. If he reads this post, he should be kind enough to let us all know how he went about doing that.

 

[trdstudent]

next stop 4867 and 4850 .

 

[4209211]

next stop 4867 and 4850 .

i feel 4750 on fut here we come very very soon

 

[saivenkat]

E1 and friends of Tj..

whatz ur view on shorting BNF below 8950 on positional basis? Is it worth a decision to make?

E1 sirji.. please avoid euphemisms and jargons.. as this dumb is not up to your standards..

 

[trdstudent]

i feel 4750 on fut here we come very very soon

may be but i'm talking abuout spot

 

[sudoku1]

Usd 55.25