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

[linkon7]

Thank you Linkon Sir.... Now everything looks clear....

But a few queries:
1. Is Time Decay a factor during Intraday... Specially on Fridays
2. What do you consider for Time Value.... No. of Days Remaining till maturity or No. of Trading Days remaining till maturity
3. Because of so many Strike Prices.... I am thinking of taking the trades in Options which trade between 60-100...... Is it good enough for a beginner in Options

Regards

Time decay is a factor and comes into effect the movement a support / resistance is established on 30 min tf...!

Time value is dependent on the number of trading days left and the momentum on EOD TF...!

5300 call was trading at 42-45, 5200 call was trading at 85-86...! Nf was at 5200..! It means, when Nf will be at 5300, 5300 call will be slightly less than 85-86...!

The strike price is not important...! As a beginner of option trading... learn to use simple strategies... like spreads... strangle... straddle.. covered call.. covered put...! Paper trade on what if scenarios and follow the result day to day...!

 

[sihasan]

Hi Linkon,

How many times do you adjust your position in a day. I usually try to adjust near the close of the day, but most of the time miss out on the move. So is there a fixed time we should consider while adjusting the position? Additionally do we also plan to do adjustment on certain point/% move of the underlying?

Appreciate your efforts on traderji and helping us with these great exposure. Thanks.

i keep changing the equation everyday...! totally depends on how we open and how we react to the open price.

Towards the end of the day.... I do another adjustment.

Options offers endless combinations and just a few tweaks here and there helps meditate risk...!

 

[linkon7]

Hi Linkon,

How many times do you adjust your position in a day. I usually try to adjust near the close of the day, but most of the time miss out on the move. So is there a fixed time we should consider while adjusting the position? Additionally do we also plan to do adjustment on certain point/% move of the underlying?

Appreciate your efforts on traderji and helping us with these great exposure. Thanks.

I make adjustments throughout the day...!

most of the time, the position i carry over are the ones i try to job and then add - subtract and carry over for the next day...!

 

[PGDIMES]

I make adjustments throughout the day...!

most of the time, the position i carry over are the ones i try to job and then add - subtract and carry over for the next day...!

Though I know, you never carry forward unhedged positions, would like to know whether your carry over only contains positions in profit or some minor loss as well!

 

[linkon7]

Though I know, you never carry forward unhedged positions, would like to know whether your carry over only contains positions in profit or some minor loss as well!

I don't like carrying loss positions as i become emotionally attached to them...!

I really dont know when i might enter the HOPE mode so preference is to carry positions with some profit on the table, that i can afford to loose...!

 

[adityasaraf007]

Paper Trade:

Long 5100 PE at 74.... SL 5135 on Nifty Future..... Expected Target 5080 atleast....

Reason: Break of Range and Flag sort of structure and sustaining below the red line of 5120

 

[adityasaraf007]

Paper Trade:

Long 5100 PE at 74.... SL 5135 on Nifty Future..... Expected Target 5080 atleast....

Reason: Break of Range and Flag sort of structure and sustaining below the red line of 5120

Covered at 84.50.... Being the 1st Trade... Feeling excited

 

[adityasaraf007]

Had it not been the 1st Trade.... A proper exit would have been now around 93-94 and in between trailing the Stop to 5100-5105 region

Reason for Exit : End of Session.....

 

[adityasaraf007]

We also get a Flag sort of Structure on 5min TF because of this Downmove.... So expecting 5030 tomorrow and a probable bounce from there

 

[ushasunil]

Though Nifty is falling why Nifty PE 4600 Nov24, is not rising?