NIFTY Options Trading by RAJ

[Option.Trader]

Raj, We have definitely learnt to predict the broader market using the tools and the information you provided. for example I was able to guess on the expiry is 6285 - 6310.

Predicting the exact move is not possible and probably not required. My suggestion would be to implement strategies for trading rather than do an intraday trade.

No one makes money intraday

I agree, playing positional is much less stressful and rewarding than trying to make sense of a schizophrenic market. For the new year looking at playing less trades ,hopefully more rewarding

 

[premkumartalreja]

The Max Pain theory worked this time as well.

 

[premkumartalreja]

Modified my Straddle for a Possitive Bias ( Bullish ) by selling 100 more 6300 Put @ 95

My Current Position is

Strike Price Instrument Action Quantity Premium
6300 Call Sell 200 76.7
6300 Put Sell 200 83
6300 Put Sell 100 95

View attachment 19396

Max payout of 41 k at 6300 on expiry Lets hope for the best

Made a Profit of 33,000 at expiry after all the charges. Investment was about 3 Lac. 10 % return month on month will turn my 3 lac to 1 crore in 5 years

 

[sanjeev258380]

Wats ur currrent positions?

 

[premkumartalreja]

Wats ur currrent positions?

None all expired. Will enter a short iron condor , iron butterfly for nifty Tom.

 

[healthraj]

Raj, We have definitely learnt to predict the broader market using the tools and the information you provided. for example I was able to guess on the expiry is 6285 - 6310.

Predicting the exact move is not possible and probably not required. My suggestion would be to implement strategies for trading rather than do an intraday trade.

No one makes money intraday

The Max Pain theory worked this time as well.

Made a Profit of 33,000 at expiry after all the charges. Investment was about 3 Lac. 10 % return month on month will turn my 3 lac to 1 crore in 5 years

Good to know that it has worked for you. All the best for the next month

But just remember one thing, the Credit Spreads work only during the BULL market or FLAT markets. In the month of Jul and Aug-13 (BEAR Phase) where the INDIAVIX and IV jumped by almost 100% the Credit spreads did not work.

So options Trading at the end of the day is about Trading Volatility.

I don't necessarily agree on your statement on Intraday trading

 

[bapu4]

Hi Premkumarji,
1st of all congrats to you having 10% earned.I need your help,
I have downloaded op oracle but stuck up how to operate it ,can you help ? It doesn't accept our NSE symbols or what?
God Bless You

 

[premkumartalreja]

Agree with you that credit spread does not work all the time. When I enter the strategy I know my max loss. So if I win 8 out of 12 times I am good. Also I will adjust the positions as time passes.

 

[singlap]

Credit spreads may not work every time , but i think we cannot say they work in bullish markets or bearish markets.
In fact, credit spreads give good credit when IVs are high even if we are selling far out of the money options, whereas when IVs are low, one does not get a decent premium to trade in credit spreads. As of now, IVs of Nifty options in the range of 14 -17 are on a lower side only.
Whenever IVs are so low, it makes sense to make debit spreads by buying options but only risk is that IVs may not go up even for whole month and time decay will eat up premium. But more often than not, when IVs are so low , market will make a sudden move in one direction and hence debit spread will give great returns. Also, due to low premiums , daily decay will also be lower.
But for sure, debit spreads will test your patience like anything as you may not see any incremental profits everyday ( rather small losses will be there) , but one big move and whole equation changes.

 

[BabaMagic]

Morning All,

Nifty Spot breakout levels for today.
Upper Breakout - 6321.90, TGT1 - 6342.40, TGT2 - 6366.15, SL - 6271.30
Lower Breakout - 6286.90, TGT1 - 6266.50, TGT2 - 6242.90, SL - 6337.20

Happy Trading!