Nifty Futures Trading

[arnav_rulz]

sahi jawaab !!!
;-))

Will love to see the 1nce seen pet again...!! hehe

Dont know why... but in a very cheerful and comedy mood today ....

 

[Sunil]

Arnav, you r reminding me of Satyajit Da...

he's also quite an expert in earning free premiums by selling options....
it's like u sell at a decent premium & cover it at the BEST possible price i.e. Re 0/-

 

[knarendra]

Im cofusing.In 2700 CE & PE , both side OI build up. pl.explain about this.

 

[ag_fx]

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

This is how the PnL Would look like for this strategy.....

 

[Sunil]

Watching Asish Da's "stock-indicator" for Nifty = Reliance

lagta hain today also closing at 27xx (9th consecutive day)
tomorrow, last day of the week to show 26xx close in weekly chart

 

[arnav_rulz]

Arnav, you r reminding me of Satyajit Da...

he's also quite an expert in earning free premiums by selling options....
it's like u sell at a decent premium & cover it at the BEST possible price i.e. Re 0/-

Yup me too trying that only... From past 2-3 Months being heavily into options strategy's... trying different different things with the minimum risk involved.. cause ill be honest.. ive never been very good @reading charts maybe cause lack of homework...

Btw Today was another great example of how the premium in intraday gets reduced... Seen this many a times that if sometimes seem a bit high(just pure trading experience) then to cool it off generally a 1 way directional way move is made.

After that 2 possibilities are there -->

A)the stock comes back to its consolidating point
B)The stock just follows that direction ..say it just keeps falling.

In case A lyke today... what happens is that... by the time the stock comes to its original price.. the "extra" premium gets wiped off by then !!
In Case B When the Stock/Nifty keeps on falling.. then there is no relation in the fall of nifty with the increase in rate of Put.

Believe it or not. What i have seen many a times is that -->

Say nifty is trading @ 2700 with 2600 Put @ 40 and 2800 call @ 35
On the same day nifty comes to 2650.
then the 2600 put is trading @ 50 or something :S and 2800 call @ 13 or something!!

Difficult to expres when all this usually happns and when exactly is there "extra" premium.. cause it just came to me with experience.. Will try and give a write up on these "different" strategies..

Im not sure If all the above made sense to every1... im sorry for that.. As i said.. very difficult for me to express all this in words..

cheers

 

[Sunil]

I agree with you regarding the "time factor" in options, arnav...

few days back when we had a good downmove, I had booked profit in my 2800 PUT at around 165. (high was 175 something)
At that time, it was not even below 2750. (i think it was the day when u were discussing with Asish da ab your options views)

Today, after many days of ping pongs & even after today's downfall, highest value of that same Put 2800 is only 157.

 

[Sunil]

Arnav, why don't you open a new Options thread... I'd like to discuss such strategies with you.

(I also have an Options thread, orphaned now - whatever you feel like - I am interested)

 

[Sunil]

Watching Asish Da's "stock-indicator" for Nifty = Reliance

lagta hain today also closing at 27xx (9th consecutive day)
tomorrow, last day of the week to show 26xx close in weekly chart

The REAL KING showing true colours....

 

[dhavalj]

I was checking the options data. I have read somewhere that close to the expiry the market generally trends towards a position where the option writers make minimum loss. They called it option pain. Right now the minimum option pain for Jan nifty options is at 2800 levels. Could that mean nifty will stay in the 2700-2800 band till expiry?