NIFTY Options trade : Why and what-if...

[linkon7]

On Thursday had joined u in 5500PE
around 62 levels, At the end of the
day when u entered 5400CE around
127, stayed back , thinking that NIFTY
will not come back. Regretted my decision
when NIFTY bounced on Friday and the
5400CE touched near to 220+ levels.

only thing certain in this market is that it'll try to screw u in every possible way...! absence of defined trend on eod is always a killer...!

 

[kmgsm]

only thing certain in this market is that it'll try to screw u in every possible way...! absence of defined trend on eod is always a killer...!

Absolutely true

 

[linkon7]

On Thursday had joined u in 5500PE
around 62 levels, At the end of the
day when u entered 5400CE around
127, stayed back , thinking that NIFTY
will not come back. Regretted my decision
when NIFTY bounced on Friday and the
5400CE touched near to 220+ levels.

I entered 5400 put short... at 49.... that was my hedge.... way of locking profit... exited that at 15....

 

[linkon7]

placed sl at 33 for 5600 call....

will ride the 5500 put....

 

[linkon7]

placed sl at 5500 put at 60...

will have to play for recovery in such a case as 5600 call wont show much life....

 

[linkon7]

such days are the worst to be on the buy side of options... option sellers are laughing their way to the banks...

Somehow have a bad feeling this week will see a 200 point move away from 5550 magnet... maybe its just hope speaking....!

 

[msa5678]

placed sl at 33 for 5600 call....

will ride the 5500 put....

Now that the SL for 5600CE is
triggered, What will be the hedge for
the 5500PE. I was assuming that 5600CE
was the hedge for 5500PE, Correct
me If I am wrong.

 

[linkon7]

sl gone on 5600 call....

 

[linkon7]

bot 5500 call at 59... as compliment...to 5500 put...
total lack of momentum is killing options trades...

big test of patience....

 

[linkon7]

Now that the SL for 5600CE is
triggered, What will be the hedge for
the 5500PE. I was assuming that 5600CE
was the hedge for 5500PE, Correct
me If I am wrong.

expectation was 5480 will break and all hell will break loose... we will see some momentum on down side since plenty of longs are trapped from friday...

But reaction to 5480 was too muted... even 5500 put didnt see its previous high when 5480 got broken. This means that not much can be expected today. EOD chart looks bearish but bears are all half asleep and lacks initiative at lower levels.

Hence to make delta neutral... we take 5500 call as hedge as tomorrow we can just exit the call or put as the new scenario presents itself....

As of now..disappointment continues... but we play our game and keep adjusting our positions so that incase we break this range tomorrow... we dont get surprised on either side...