Nifty Futures Trading

[MINITRADER99]

Jeffsmith ,

I am tired of reading your cautious POSTS now. The People who POST and TRADE in this thread like tsunil , learn2trade and uashish are all PROFESSIONAL TRADERS. Have you ever cared to wonder to have a look at the charts which these people post to tell you about their TRADING LEVEL.. Its no use clogging this thread with such posts. Plz STOP it,
If you want to warn people Open a new thread - F&O is DANGEROUS and give your views. I didnt want to do this but so many of your posts couldnt hold me back. No hard feelings but try to understand my point

Noone is a novice in this thread , 90% above trades done in this thread go right so believe me and stop advising here.
Hope You understand

Thanks for airing the views of many members. Names mentioned by you are not only professional traders but they guide novices to make them successful free of cost.If mr jeffsmith could not become a professional trader instead of joining this great forum and afraid of trading nifty there is something wrong with him seriously. He should find out causes of his failure instead of scaring the others. He should read threads of this forum for few months and follow them seriously to become a successful trader.

 

[pkamalesh]

Thanks for airing the views of many members. Names mentioned by you are not only professional traders but they guide novices to make them successful free of cost.If mr jeffsmith could not become a professional trader instead of joining this great forum and afraid of trading nifty there is something wrong with him seriously. He should find out causes of his failure instead of scaring the others. He should read threads of this forum for few months and follow them seriously to become a successful trader.

Hmmm....Really dint pay much attention to those posts until CB bunched all of them..hehehe...any ways an adice to jeff as a friend...dude market itself is a challenge and all the people here are working day and night to face this challenge...As for ur advices its like a deadly combo of fear and laziness...Dude challenges are a way of life..Face it or leave it thats upto u....You cant wait on the seashore waiting for the waves to come and $#@%$@%#^@

 

[knarendra]

Jeffsmith ,

I am tired of reading your cautious POSTS now. The People who POST and TRADE in this thread like tsunil , learn2trade and uashish are all PROFESSIONAL TRADERS. Have you ever cared to wonder to have a look at the charts which these people post to tell you about their TRADING LEVEL.. Its no use clogging this thread with such posts. Plz STOP it,
If you want to warn people Open a new thread - F&O is DANGEROUS and give your views. I didnt want to do this but so many of your posts couldnt hold me back. No hard feelings but try to understand my point

Noone is a novice in this thread , 90% above trades done in this thread go right so believe me and stop advising here.
Hope You understand

Hai Hot boy,
How you know they are prof.traders? If jeff smith telling advice,
why are you worry about it? If you like this advice, then read it. OR ignore it.
Im like it and read it. But, i cannot follow it.
Even my father telling advice, i caant follow it.

 

[arnav_rulz]

FOR EXAMPLE

**If say Nifty Future is @ 3000 and 3200 Call is @Rs 50 then 3200 Put has to be @ 250,

If Put is more than 250 then...
Sell the Put , Buy the Call & sell the Future ( and there and there @ the end the month you will 100% earn the extra amount (ie value of Put sold - 250)

**Here the Value of Put is calculted as ---> Difference of strike price of Call and Future rate (3200-3000) + Premium Received from call = 50 ie 200+50=250..

Refering the Red coloured portion,
Is it 3 jobs ?
a) Buying Call
b)Writing the Put
c)Shorting Fut
If so then is not 1 directional side kept open (for many Weeks Satyajit is trying to explain this to me but unable to fathom this kindly elaborate this further after Mkt Hrs)

Sir, First Lets See the Example that i gave...

1)We short Nifty Future trading @ 3000
2)We Buy Nifty 3200 Call @ 50
3)We Sell/Write 3200 Put @ say 250+10(that will be profit) = 260

Now If it is Completely hedged... then as i said our profit should be (10 points) regardless of where the market closes ..

Lets see... Say --->
1)Nifty Closes @3000 - a)Now we Earn nothing from the Future we shorted.
b)We lose the 50 we invested in the Call
c)We gain 260-200 = 60 from the Put we Sold.
So Overall we earn 10 points.

2)Nifty Closes @ 3500 --->a) We Lose 500 from the Future Shorted
b)We earn 300-50(premium paid) = 250 from the call
c)And again We earn 260 from the Put sold
Thus Overall we earn 10 points.

3)Nifty Closes @ 2500 -->a)Earn 500 from Future
b)Lose 50 from call brought
3)Lose 700-260 = 440 from the Put sold
Overall We again earn 10 points.


Thus it is very clear That We are Completely hedged here ... But HOW >?

Now for that lets get that to basics and take another example.
Short Nifty future @ 3000
Short Put of 3000 @ 150
Buy Call of 3000 @ 150

Now.. Lets take 1 thing at a time.

1)Short Future-->From Shorting the Future @ 3000... it is clear that any point above 3000 is our loss and below that it is our profit.

2)Short Put 3000 @ 150---> From this we can say that any point Below 2850 is our loss and any point above 2850 till 3000 is our profit therefore our maximum profit is 150.

3)Call of 3000 @ 150 --->Any point above 3150 is Profit and below it is our loss till 3000... i.e max loss = 150.


A)NOW Combine 1&2 i.e Short the Future & Short the Put.

Q. If we do only these two transactions... What will be the end result ?

A. Shorting Future @ 3000 will give us unlimited gains if Nifty falls down but due to our shorting of Put we will start losing below 2850 therefore the gains of Future will be set off from the losses of Put BELOW 2850 therefore Our Max profit = 150 (@ any level between 2850-3000)

Now above 3000 we will start loosing from the Nifty Future we Sold BUT as above 3000 we will gain the 150(we received from the Put) therefore our losses will actually start above 3150...

SO Overall the Situation is... @ a close of 3000 and below we earn 150 and as we go above 3000 we start losing one one point from the 150 and can have unlimited losses.

Doesnt this Sound familiar ? Doesnt this look As if what we have actually done is nothing but Shorted a Call of 3000 @ 150 ? Yes It does.
Shorting a Call 3000 @ 150 also have the result ie Max gains till 3000 and below = 150 and losses starts after 3150.

Thus To hegde this... We BUY a 3000 Call @ 150 And nulify/hedge our positions Completely !!

What we did was -- > (Short the Future + Short the Put) i.e = Short a Call and to hedge it completely we brought a Call.
Thus we did 3 transactions to completely hedge our positions.


Similarly in the same example we could have looked it in another way.. i.e
Shorting the Future And Buying a Call = Buying a Put... therefore to completely hedge we have Sold a Put..


*I hope it is a bit clear now and also i hope this is what you were actually asking.. hehe

 

[pkamalesh]

Sir, First Lets See the Example that i gave...

1)We short Nifty Future trading @ 3000
2)We Buy Nifty 3200 Call @ 50
3)We Sell/Write 3200 Put @ say 250+10(that will be profit) = 260

Now If it is Completely hedged... then as i said our profit should be (10 points) regardless of where the market closes ..

Lets see... Say --->
1)Nifty Closes @3000 - a)Now we Earn nothing from the Future we shorted.
b)We lose the 50 we invested in the Call
c)We gain 260-200 = 60 from the Put we Sold.
So Overall we earn 10 points.

2)Nifty Closes @ 3500 --->a) We Lose 500 from the Future Shorted
b)We earn 300-50(premium paid) = 250 from the call
c)And again We earn 260 from the Put sold
Thus Overall we earn 10 points.

3)Nifty Closes @ 2500 -->a)Earn 500 from Future
b)Lose 50 from call brought
3)Lose 700-260 = 440 from the Put sold
Overall We again earn 10 points.


Thus it is very clear That We are Completely hedged here ... But HOW >?

Now for that lets get that to basics and take another example.
Short Nifty future @ 3000
Short Put of 3000 @ 150
Buy Call of 3000 @ 150

Now.. Lets take to things 1 at a time.

1)Short Future-->From Shorting the Future @ 3000... it is clear that any point above 3000 is our loss and below that it is our profit.

2)Short Put 3000 @ 150---> From this we can say that any point Below 2850 is our loss and any point above 2850 till 3000 is our profit therefore our maximum profit is 150.

3)Call of 3000 @ 150 --->Any point above 3150 is Profit and below it is our loss till 3000... i.e max loss = 150.


A)NOW Combine 1&2 i.e Short the Future & Short the Put.

Q. If we do only these two transactions... What will be the end result ?

A. Shorting Future @ 3000 will give us unlimited gains if Nifty falls down but due to our shorting of Put we will start losing below 2850 therefore the gains of Future will be set off from the losses of Put BELOW 2850 therefore Our Max profit = 2850 (@ any level between 2850-3000)

Now above 3000 we will start loosing from the Nifty Future we Sold BUT as above 3000 we will gain the 150(we received from the Put) therefore our losses will actually start above 3150...

SO Overall the Situation is... @ a close of 3000 and below we earn 150 and as we go above 3000 we start losing one one point from the 150 and can have unlimited losses.

Doesnt this Sound familiar ? Doesnt this look As if what we have actually done is nothing but Shorted a Call of 3000 @ 150 ? Yes It does.
Shorting a Call 3000 @ 150 also have the result ie Max gains till 3000 and below = 150 and losses starts after 3150.

Thus To hegde this... We BUY a 3000 Call @ 150 And nulify/hedge our positions Completely !!

What we did was -- > (Short the Future + Short the Put) i.e = Short a Call and to hedge it completely we brought a Call.
Thus we did 3 transactions to completely hedge our positions.


Similarly in the same example we could have looked it in another way.. i.e
Shorting the Future And Buying a Call = Buying a Put... therefore to completely hedge we have Sold a Put..


*I hope it is a bit clear now and also i hope this is what you were actually asking.. hehe

Hey arnav ...thanks for all ur useful info bro...when i joined TJ i used to follow one of the threads by u...is it closed now???i think ur back after a long time...

 

[arnav_rulz]

Hey arnav ...thanks for all ur useful info bro...when i joined TJ i used to follow one of the threads by u...is it closed now???i think ur back after a long time...

Well Yeah i had 1-2 threads regarding Options... but i closed those threads cause it was turning out to be very confusing for most of the members and everyday it was going off topic and other un-related issues were being dragged into it.. thus defeating the Purpose of the thread ..

Also Im a bit buzy nowadays so it was very difficult to answer every1's query in that thread... thus i closed the thread..

And im not back after a long tyme.. i was always here (i always will be, god bless the forum) but im Not very active these days..

 

[learn2trade08]

the only person a trader has to answer is himself...

Well Yeah i had 1-2 threads regarding Options... but i closed those threads cause it was turning out to be very confusing for most of the members and it everyday it was going off topic and other related issues where being dragged into it.. thus defeating the Purpose of the thread ..

Also Im a bit buzy nowadays so it was very difficult to answer every1's query in that thread... thus i closed the thread..

And im not back after a long tyme.. i was always here (i always will be, god bless the forum) but im Not very active..

 

[arnav_rulz]

the only person a trader has to answer is himself...

True, But if some1 is trying to make others understand his technique/strategy.. then answering their doubts is the only thing he has to do

 

[learn2trade08]

i totally agree arnav,please keep up the good work.
all the best!

True, But if some1 is trying to make others understand his technique/strategy.. then answering their doubts is the only thing he has to do

 

[arnav_rulz]

Today's Gap also filled up ...

1 may look to short now @ 2925 with a stop of high of last 30/60 minute candle with a stop of 2943 as per my rules gap up rules..