Nifty Futures Trading Part 2 (Positional)

[Czar]

SatDa Any chance of Sensex chart ?

 

[mitasatyajit]

SatDa Any chance of Sensex chart ?

Not prepared ready right now. Will upload tonight. If u allow, can upload other indexes also and then the thread name to be changed to Index Future trade.

 

[Czar]

Arre Da, you embarrassing by asking please do & regarding name, I think its fine as all those will help in deciphering Nifty itself....

 

[orderflow13]

Not prepared ready right now. Will upload tonight. If u allow, can upload other indexes also and then the thread name to be changed to Index Future trade.

excellent idea satda. This green line of 3965 evaded two times, is it any significant to u ?or line should hold?

 

[deb99891]

Not prepared ready right now. Will upload tonight. If u allow, can upload other indexes also and then the thread name to be changed to Index Future trade.

wow dada

 

[mitasatyajit]

excellent idea satda. This green line of 3965 evaded two times, is it any significant to u ?or line should hold?

It is very significant for next month / quarter. If any how we can close below 3965 this month. Hurreh !!!! Short huge amount with stop 3965. Downside target may be pataal.

 

[Czar]

SatDa the reason I asked for Sensex is because the co-related levels of 3965 with Sensex is already broken, Nifty is giving false picture, like in march how nifty gave false pic of higher bottom but sensex had already made lower bottom, here the TL in picture is already broken in sensex, but you need to verify..

 

[parttimetrader]

As a general rule, the odds always favor option writers, and never option buyers (irrespective of call or put). The reason is time decay. The moment you purchase an option, you (as buyer) start suffering loss in value due to time decay, while the option seller starts gaining. Selling options is like selling insurance, and the overall odds are stacked in favor of the seller.

Thus one has to take special consideration of the timing (time to expiry) when contemplating an option purchase - allow enough time for the anticipated volatility event to take place, but not so much time that because of the inbuilt time value of the premium, the option value doesn't react much (unless you are buying at the money or in the money options).

Just because something is cheap doesn't mean it will be hugely profitable (when thinking about out of the money options with near month or next month expiries). Profitable trades can be done using at the money exercise prices, if one is intent on only going long the options.

Just my $0.02.

Thanks

 

[mitasatyajit]

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[mitasatyajit]

SatDa the reason I asked for Sensex is because the co-related levels of 3965 with Sensex is already broken, Nifty is giving false picture, like in march how nifty gave false pic of higher bottom but sensex had already made lower bottom, here the TL in picture is already broken in sensex, but you need to verify..

You r absolutely right Czar.