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

[VJAY]

CE options 5400,5300,5200 saw lot of erosion 48%,39% and 25%.
PE options 4900 saw 22% erosion.PE options appear to go strong.

In fact during intraday CE options lost more than 50% one time and
all PE on strong +ve side.

Dear columbus,
Can you please eloberate how can we use it in our trading......

 

[columbus]

On the contrary, 5000 & 5100 CE have shown much less erosion compared to 5000 & 4900 PE. 5000 PE should've strengthened because of the 38 pts downturn.

The guys who know the greeks will be able to explain it better. Where art thou, Dan ??

Hi Timepass,

Yeah, Dan ,can throw more light on this aspect.During last 30 min PE options turned NEGATIVE.

 

[columbus]

Dear columbus,
Can you please eloberate how can we use it in our trading......

Dear Vijay,

I am putting this data just for information.In fact looking for inputs that
might help me ,because I am quite new to options.

 

[linkon7]

Shorted Dec 5000 call and 5000 put for a total of 330...!

 

[adityasaraf007]

Today I played with Options for the first time with real money....

1. Went Long in 5000CE @ 83.60 after it sustained the 5010 level around 1:20pm.... SL was around 4985-4990.... SL was hit, but this being the first trade, emotions didn't let me get out of it.... Later on closed the position @ 52.00 after it broke the 4960 level....

2. Immediately went long in 4900PE @ 45.40 and squared it off at the end of day around 61.10....

Experience: I thoroughly enjoyed the ride.... Although made the mistake by not squaring off that 1st trade and ending the day in Loss.... But it's OK.... Being the 1st Trade, I would like to excuse myself this time....

Lesson learnt: Options move pretty fast.... If you wanna play it.... Be convinced if you want to take a trade or not..... and if convinced about it, put Market Orders

 

[columbus]

Today I played with Options for the first time with real money....

1. Went Long in 5000CE @ 83.60 after it sustained the 5010 level around 1:20pm.... SL was around 4985-4990.... SL was hit, but this being the first trade, emotions didn't let me get out of it.... Later on closed the position @ 52.00 after it broke the 4960 level....

2. Immediately went long in 4900PE @ 45.40 and squared it off at the end of day around 61.10....

Experience: I thoroughly enjoyed the ride.... Although made the mistake by not squaring off that 1st trade and ending the day in Loss.... But it's OK.... Being the 1st Trade, I would like to excuse myself this time....

Lesson learnt: Options move pretty fast.... If you wanna play it.... Be convinced if you want to take a trade or not..... and if convinced about it, put Market Orders

Personally feel Futures move faster than Options.

 

[adityasaraf007]

Personally feel Futures move faster than Options.

Yes.... You caught me.... I am talking in terms of percentage......

 

[columbus]

All CE options lost their value miserably while PE options have consolidated
further.This merely indicates the trend is in downward direction as of now.

 

[timepass]

All CE options lost their value miserably while PE options have consolidated
further.This merely indicates the trend is in downward direction as of now.

And Nifty ??? from premium to solid discount !!! Jyotima tamsorgmay

 

[linkon7]

Today I played with Options for the first time with real money....

1. Went Long in 5000CE @ 83.60 after it sustained the 5010 level around 1:20pm.... SL was around 4985-4990.... SL was hit, but this being the first trade, emotions didn't let me get out of it.... Later on closed the position @ 52.00 after it broke the 4960 level....

2. Immediately went long in 4900PE @ 45.40 and squared it off at the end of day around 61.10....

Experience: I thoroughly enjoyed the ride.... Although made the mistake by not squaring off that 1st trade and ending the day in Loss.... But it's OK.... Being the 1st Trade, I would like to excuse myself this time....

Lesson learnt: Options move pretty fast.... If you wanna play it.... Be convinced if you want to take a trade or not..... and if convinced about it, put Market Orders

What was your exit strategy....?

you ended in HOPE-mode.... and lost big for being unplanned...! As a trader, getting stop loss hit is normal... playing without an exit strategy is suicidal...!