Nifty Futures Trading

[Czar]

u know, if i were in your place, i would sell 3600/3800 put & sell 5000 call...at this stage... (Short strangle)
free premium...
neither 3600/3800 would be achieved nor 5000 by this expiry...

I wont bet on 5K not being achieved, atleast close to that is very possible

 

[learn2trade08]

With crude cooling down and the disinvestment story kicking in,there is some positive sentiment....The above said has nothing to do with technicals but even if look at the charts the falling wedge and inverse H&S point towards a minimum objective of 4800.....the calls bought at 13,even if say goes to 30 rs @ 4700(would cover the puts and the brokerage for both puts and calls)...
keeping fingers crossed for now...
plz keep up the good work.

 

[praveen taneja]

With crude cooling down and the disinvestment story kicking in,there is some positive sentiment....The above said has nothing to do with technicals but even if look at the charts the falling wedge and inverse H&S point towards a minimum objective of 4800.....the calls bought at 13,even if say goes to 30 rs @ 4700(would cover the puts and the brokerage for both puts and calls)...
keeping fingers crossed for now...
plz keep up the good work.

sir if u dont mind can i ask wat is ur target earn for urself or brokerage for ur broker???????????

 

[learn2trade08]

praveen,
my objective is to be hedged....there is no doubt in my mind that net either way nifty goes from here i will be making money puts+ calls...
patience my friend.

sir if u dont mind can i ask wat is ur target earn for urself or brokerage for ur broker???????????

 

[mitasatyajit]

As per weekly chart, strong resistance is seen at 4576 - 4580 (spot). Short may be done at that time with stop loss nearest to zero.

 

[Czar]

but mostly nifty will jump above those levels on monday... SGX suggested closing 4595

 

[praveen taneja]

but mostly nifty will jump above those levels on monday... SGX suggested closing 4595

ohh nooooooooo then it means stop loss 4582 will b broken on monday

 

[rajaram.dilipkumar]

Guys Options are a fantastic way to make money please dont find novel methods to loose money there...it is the only instrument where we can play it both ways at the same time and define our stops at entry being the premium paid...pls consider time value, technical position of the market and pay-offs before planning to use any options strategy and this alone will be enough to make money more than what we can make in futures or equities... but these strategies will not be found in any books ... only knowledge and experience can teach them....

 

[mitasatyajit]

Guys Options are a fantastic way to make money please dont find novel methods to loose money there...it is the only instrument where we can play it both ways at the same time and define our stops at entry being the premium paid...pls consider time value, technical position of the market and pay-offs before planning to use any options strategy and this alone will be enough to make money more than what we can make in futures or equities... but these strategies will not be found in any books ... only knowledge and experience can teach them....

We can share our analysis for mutual benefit of this family.

Regards

 

[learn2trade08]

first of all my apologies to ashish'sir for hijacking his thread.i promise this will be my last positng on options in this thread...
last week some time i had a profit of 13k approximately in a trading session,i bought 1000 shares of 5000 ca's @ 13+ brokerage makes it 14000 from tht days profits.later on nifty was sideways,so yesterday i bought 3600 pa(500 @ approx 6.10+ 500 rs brokerage makes it approx 3500 rs).
from here i expect nifty to rally starting this week as nifty has managed to close right at the neckline of the inverted h&s for 3 consecutive sessions.
Say if i was wrong about the inverted h&s,i know there are many others who are holdng nifty on h&s pattern,the massive unwinding of positions continued by short build up will bring nifty towards 4346/4248,at this point my calls would be trading at sub 3 -5 rs levels...i can cover my brokerage here by selling calls and puts,puts will be somewhere around 13..so i am basically losing approx. 6000 rs, if the inverted h&s fails....but if inverted h&s holds good then we are going to see a good 800 point rally.Even on a worst case scenario if nifty were to close at 4700-4800 this week,then i am holding calls at 35 rs.that makes it 35000 rs-4000 rs(puts)+ brokerage say(2000)=29000 and less 14000 capital makes it a profit of 15000 rs...
yes i know i am definitely counting chickens before the egg hatches,but i am here to learn from my mistakes and most probably i should be closing positions by this friday....
thanks

We can share our analysis for mutual benefit of this family.

Regards