Nifty Futures Trading

[prasadam]

NF weekly.

 

[sikandar]

Well Trading after a long time... Planning to eat some Election Premium by selling Far out of money options Above strong Supports and Resistances..

3800 Is a very strong resistance Whereas 3150-3200 is the Support Region.

Want to take minimum risk since election results are coming up on 16th.. Thus Started by selling

1)3900 Call @ 46
2)3000 Put @ 26

Total Premium collected = 72.

Will keep a stop of 50% of Premium Collected i.e till premium reaches 108.
Will like to hold the Sold Options till expiry..

Hi
Can you explain the possible outcome pls.

 

[arnav_rulz]

Im off From trading screen for now.. Going with a Shorted Nifty @ 3570 And taking stop @ 3596..

 

[arnav_rulz]

Well Trading after a long time... Planning to eat some Election Premium by selling Far out of money options Above strong Supports and Resistances..

3800 Is a very strong resistance Whereas 3150-3200 is the Support Region.

Want to take minimum risk since election results are coming up on 16th.. Thus Started by selling

1)3900 Call @ 46
2)3000 Put @ 26

Total Premium collected = 72.

Will keep a stop of 50% of Premium Collected i.e till premium reaches 108.
Will like to hold the Sold Options till expiry..

Hi
Can you explain the possible outcome pls.

Well the outcome of this strategy is that if Nifty Remains Below 3900 and above 3000 in the month of may you will earn the whole premium ie 72 points..

Below 3000 and above 3900 u will start losing one one point and thus u will be in profit btw 3972 and 2928

Below or above that close this month u will lose money..

cheers

 

[MurAtt]

this one is not seems to WW to me
1 & 4 can not be in straight line & 135 line is too steep

it seems to me more like a channel formation.

This chart posted by Ajax Sir - so I doubt but u never know.

 

[GokaSingh]

Well the outcome of this strategy is that if Nifty Remains Below 3900 and above 3000 in the month of may you will earn the whole premium ie 72 points..

Below 3000 and above 3900 u will start losing one one point and thus u will be in profit btw 3972 and 2928

Below or above that close this month u will lose money..

cheers

Which trading platform r u using and how much it costed to trade one lot of put and call ?

 

[arnav_rulz]

Which trading platform r u using and how much it costed to trade one lot of put and call ?

See i am dealing with a Small broking firm Start Finvest (i know them personally) in Delhi...

The brokerage he charges me is .5% of total premium amount..

 

[GokaSingh]

See i am dealing with a Small broking firm Start Finvest (i know them personally) in Delhi...

The brokerage he charges me is .5% of total premium amount..

Thanks ...
How much margin is blocked for selling option...

 

[MurAtt]

Looks like a Do-Nothing day today.

 

[arnav_rulz]

Thanks ...
How much margin is blocked for selling option...

Well I have given my equity stocks as margin and thus dont have big problems of margin so dont exactly know how much margin is needed...

But i think 14% of Nifty lot size is needed as margin.. So Margin should be around 25,000 per lot sold..