Nifty Futures Trading

[new2sm]

right shoulder above left shoulder's high....

I took it as a rectangle with target around Spot 2667-65

Sunil 2667??

 

[kalwarik]

Spot 2667-65 ????

 

[arnav_rulz]

Thanks Arnav...

Actually, if considered from expiry pt. of view, then both are theoritically same....
I wanted to know which is better if strategy is only for about a week - wanted to have some Holi gift from Nifty... (in form of credit from that spread)


I feel Put spread would have been better

1. IB 60 with completely inside body and diff colour than preceding bar
2. BB 5min
3. IV

"extended weekend homework"

Sunil, strategy be it for a week or till expiry... Both strategies Are still exactly the same.

Its just the Fluctuation of Prices that can bring a change(but it will be very small) in amount of profit/loss if you compared both the strategies.

See as i even read on google...

An increase in IV will increase an options price (both Call and Put options).

Another mathematical Formula.

Premium Collected from a Call Bear Spread = Difference in the Strike Price of the Calls - the Premium given in Buying a Put bear spread.

So Putting the same in our previous Situation..

Premium Collected from a Call Bear Spread i.e 55 = Difference in the Strike Price of the Calls(ie 2600-2500) = 100 - the Premium given in Buying a Put bear spread.(which should be very near to 45)

So the amount of Profit a Call bear Spread will give in 1 day or 1 week or whole expiry will always be = the Profit given by a Put Spread Strategy (of the strike prices obv..)

I dont have the current Rates of Calls and Puts right now.. But you can check for yourself and try it on call/put of any strike price.. Max diff ull find would not be more than 3-4 points. And if there is.. then its a Clear Arbitrage opportunity.

 

[arnav_rulz]

In one of my Posts in the Library thread also i posted somewhere that...

THERE IS NO DIFFERENCE BTW PUTS AND CALLS...!! Its All just in our Minds.
Puts are almost the same as CALLS !!

It is never that Puts have more premium in a bear market, and Calls have more premium in the Bull market..

 

[Sunil]

In one of my Posts in the Library thread also i posted somewhere that...

THERE IS NO DIFFERENCE BTW PUTS AND CALLS...!! Its All just in our Minds.
Puts are almost the same as CALLS !!

It is never that Puts have more premium in a bear market, and Calls have more premium in the Bull market..

will continue EOD....
wanted to show something

 

[Sunil]

test of Spot 2610 as RSR...

signs of bullish divergence in 60min...!!!
already sustaining above yesterday's low - spot 2564

 

[Sunil]

test of Spot 2610 as RSR...

signs of bullish divergence in 60min...!!!
already sustaining above yesterday's low - spot 2564

so far so good - now waiting for 60min RSI to reach first target of earlier PH
(MAY coincide again with spot 2640-2660 zone)

 

[Sunil]

so far so good - now waiting for 60min RSI to reach first target of earlier PH
(MAY coincide again with spot 2640-2660 zone)

(wanted to add):

the current & next bar needs to be away from spot 2564 (yest low) for this

 

[Sunil]

superb....

bullish divergence in higher TF lasts longer & meatier....
(discount reduced in Fut)

in the process, lower TFs are ignored (their turn on Monday)

 

[uasish]

Gr8 you guys are doing good.