Nifty Futures Trading Part 2 (Positional)

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Sunil

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Yes this is the position keeping in the view of expiry points. I can try to raise the profit by adjusting the position as said earlier.
da, please
can u give an illustration abt the adjustments giving today's closing figure (say in case of 3700 & 3900)...
for today's actual closing 3800, u said - no adjustments

edit - actually misread this part "i can try to RAISE the profit".....
i thought u meant "try to PROTECT the profit...

anyway, still, what if today's closing was at 4000 & at 3700....
just to understand your strategy better
 
da, please
can u give an illustration abt the adjustments giving today's closing figure (say in case of 3700 & 3900)...
for today's actual closing 3800, u said - no adjustments

edit - actually misread this part "i can try to RAISE the profit".....
i thought u meant "try to PROTECT the profit...

anyway, still, what if today's closing was at 4000 & at 3700....
just to understand your strategy better
I have not calculated like that way. For 3700 or 4000, position could not be the same. e.g. If I could see 3700 in the data board, strike price of option would be changed to 3700 from 3800. Alternatively if there was 4000 the strike price could be changed. But Future short would remain unchanged as linebaba has not suggested to go long. In the mean time nifty tested 3900, but I have not changed the strike price to 3900 as the profit could not be raised (as per the price of call and put at that time). I have calculated that, if I changed the strike price to 3900 at that time, my broker would make profit, and that is very painfull to me.
 

orderflow13

Well-Known Member
satda,
last query from my side, i didnt get clear words to xplain..
hypothetically if nifty didnt move for 6 days, and ur position in option is remain as it is, then after 6 days what will be the price of ur option ? my point is by which method u calculating decay in time value? or method is totally different ?
light plzz :)
 
satda,
last query from my side, i didnt get clear words to xplain..
hypothetically if nifty didnt move for 6 days, and ur position in option is remain as it is, then after 6 days what will be the price of ur option ? my point is by which method u calculating decay in time value? or method is totally different ?
light plzz :)
If nifty is rangebound in a small range for 6 days - 10 days - or upto expiry, what may happen ? Future price will remain unchanged, Call / Put prices will tend to zero as time goes towards expiry, I shall not change my position, profit remains nearly equal to 600 points. In this case, two problems are there - I cannot raise my profit and my broker will cry.

I donot use any theoretical calculation for time decay, as I donot have sufficient funda on it. I know only that, as the time increases in my clock tick by tick, price of option decays with time.

See, Trendline method and this type of position method, is easy to be understood by begineers / dumbs like me and is very difficult to be accepted by the advanced traders.
 
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