Nifty Futures Trading

[rider.royal]

Nope there is no need to cover ... It will automatically square off at the end of expiry day.. I just mentioned that i will buy it @ 5 paise cause it makes me feel real good to see 100% profit ! hehe

Just for query, can we sell these calls and puts without owning them like futures??

 

[arnav_rulz]

Just for query, can we sell these calls and puts without owning them like futures??

Yup these have almost all the same features as Futures.. Thus we can sell them without owning them !

 

[rider.royal]

and whats margin requiredments, like its 20k and 10k for nifty and mininifty??

 

[arnav_rulz]

and whats margin requiredments, like its 20k and 10k for nifty and mininifty??

Ahh for that you have to confirm it with your broker... Its different @ different places.. I do not have margin problems because all my long term stocks are kept as margin.. So dont have much idea on margin requirement..

 

[new2sm]

Triangle formation. either side move possible. there is also an inv. h&s formation going on so I wud assume upmove. lets see.

 

[rider.royal]

Ahh for that you have to confirm it with your broker... Its different @ different places.. I do not have margin problems because all my long term stocks are kept as margin.. So dont have much idea on margin requirement..

ok. thnks for answering my query even if it is unrelated to thread...

 

[arnav_rulz]

one can apply my favourite Option selling strategy right now...

those who think markets will not go below 2500 or go above 2900 this month(especially with only a few days left and soo many resistances and supports in the way..) can go for the following strategy.

Buy 50 2700 Call @ 70
sell 100 2800 call @ 30

Buy 50 2700 Put @ 70
Sell 100 2600 Put @ 35

Losses below 2500 and above 2900 close as on Expiry...

Pretty unusual to see such high premium with only a few days to expiry especially with a tight ranged market... Maybe The market is looking for a breakout ..

cheers

 

[Sunil]

one can apply my favourite Option selling strategy right now...

those who think markets will not go below 2500 or go above 2900 this month(especially with only a few days left and soo many resistances and supports in the way..) can go for the following strategy.

Buy 50 2700 Call @ 70
sell 100 2800 call @ 30

Buy 50 2700 Put @ 70
Sell 50 2600 Put @ 35

Losses below 2500 and above 2900 close as on Expiry...

Pretty unusual to see such high premium with only a few days to expiry especially with a tight ranged market... Maybe The market is looking for a breakout ..

cheers

kuch gadbad hain, yaar...

suppose it closes at 2600

Buy 50 2700 Call @ 70 ===== NP = -70
sell 100 2800 call @ 30 ===== NP = +60

Buy 50 2700 Put @ 70 ====== NP = +30
Sell 50 2600 Put @ 35 ====== NP = -35

GORSS PROFIT = -70+60+30-35 PER LOT
= -15 PER LOT


A SHORT STRANGLE
SELL CALL 2900 @ 8/-
SELL PUT 2500 @ 15/-
GROSS PROFIT = 15+8=23/- PER LOT

IF CONFIDENT OF NOT EXPIRING BELOW 2600, THEN IF ONE SELLS PUT 2600 TOO @ 35, THEN GROSS PROFIT = 8+15+35=58/- PER LOT

 

[arnav_rulz]

kuch gadbad hain, yaar...

suppose it closes at 2600

Buy 50 2700 Call @ 70 ===== NP = -70
sell 100 2800 call @ 30 ===== NP = +60

Buy 50 2700 Put @ 70 ====== NP = +30
Sell 50 2600 Put @ 35 ====== NP = -35

GORSS PROFIT = -70+60+30-35 PER LOT
= -15 PER LOT


A SHORT STRANGLE
SELL CALL 2900 @ 8/-
SELL PUT 2500 @ 15/-
GROSS PROFIT = 15+8=23/- PER LOT

IF CONFIDENT OF NOT EXPIRING BELOW 2600, THEN IF ONE SELLS PUT 2600 TOO @ 35, THEN GROSS PROFIT = 8+15+35=58/- PER LOT

oops srry ... it was sell 100 2600 puts... I have corrected it above.

It should be this on a close @ 2600

Buy 50 2700 Call @ 70 ===== NP = -70
sell 100 2800 call @ 30 ===== NP = +60

Buy 50 2700 Put @ 70 ====== NP = +30
Sell 100 2600 Put @ 35 ====== NP = +70

= +90(and as we go further down we keep on loosing 1 point therefore @ 2510 we break-even)

 

[arnav_rulz]

kuch gadbad hain, yaar...

suppose it closes at 2600

Buy 50 2700 Call @ 70 ===== NP = -70
sell 100 2800 call @ 30 ===== NP = +60

Buy 50 2700 Put @ 70 ====== NP = +30
Sell 50 2600 Put @ 35 ====== NP = -35

GORSS PROFIT = -70+60+30-35 PER LOT
= -15 PER LOT


A SHORT STRANGLE
SELL CALL 2900 @ 8/-
SELL PUT 2500 @ 15/-
GROSS PROFIT = 15+8=23/- PER LOT

IF CONFIDENT OF NOT EXPIRING BELOW 2600, THEN IF ONE SELLS PUT 2600 TOO @ 35, THEN GROSS PROFIT = 8+15+35=58/- PER LOT

Also your calculations mein bhi garbar hai !

Buy 50 2700 Call @ 70 ===== NP = -70
sell 100 2800 call @ 30 ===== NP = +60

Buy 50 2700 Put @ 70 ====== NP = +30
Sell 50 2600 Put @ 35 ====== NP = +35

GORSS PROFIT = -70+60+30+35 PER LOT
= +55 PER LOT