Nifty Futures Trading

Status
Not open for further replies.
i called my 3 frnds using same rel. odin .... every one having problem it seems
Hi Alex..

I have one small doubt.. today i wrote 4400 call of october at 101 .. when do we cover it usually ..
1.when trade goes in my direction say at nifty 3900.
2.Say market remain range bound and the value of option comes down to 33 and we have 3 days to exiry. Then instead of covering that short i will go long in nifty futures.

Which is the better approach..
 

orderflow13

Well-Known Member
Hi Alex..

I have one small doubt.. today i wrote 4400 call of october at 101 .. when do we cover it usually ..
1.when trade goes in my direction say at nifty 3900.
2.Say market remain range bound and the value of option comes down to 33 and we have 3 days to exiry. Then instead of covering that short i will go long in nifty futures.

Which is the better approach..
Nagendra
if u buy nifty at 3900 then u hav positions llike .. 3900 fut. buy and 4300 call written (its a cover call ), now if u got long on nifty ( by looking at chart 3900 is good support ) at the support and had a stoploss of 100 points then u have nothing to loose,and might gain all upside upto 4400, if nifty bounce back( and if close on 4400, u will have 500+100 = 600 point profit )
and if u just cover ur written call say at 10 rs when nifty at 3900 u will have 90 rs profit and position closed ...
Do as per ur personal risk profile along with ur total portfolio :)
Alex
 
Hi,

Couple of observations on levels today.

- Today's PP, S1, S2 levels worked as expected. (solid lines in chart attached)
- I am also checking out Market Profile indicator available on Amibroker. I have noticed that congestion areas usually correspond to the peaks in market profile in previous couple of days. (dotted lines in chart attached)

-- Milind
 

Attachments

Status
Not open for further replies.

Similar threads