NIFTY Options Trading by RAJ

[msa5678]

Right. Anyway, a saying goes in the stock markets "Sell in May and go away "

Later I found that May series options have not started trading still. Don't know the reason. April and June series is there but no May Series.

 

[LondonVisitor]

General Elections are expected to be held from mid April to early May in 5-6 phases, and counting may start around 2nd week of May. So why not May Options instead of April.

Options are open for Feb, Mar and Apr, then next quarter end Jun and year end Dec. May options will open on 28th Feb, which is the first trading day of March Futures month.

 

[Option.Trader]

General Elections are expected to be held from mid April to early May in 5-6 phases, and counting may start around 2nd week of May. So why not May Options instead of April.

Absolutely... i thought the results are in march - april timeframe..

 

[healthraj]

Playing for Election results.

It is too early to play/plan for Elections now. Normally it is better to go for a Straddle just one or Two days before the election result. Those who don't know what is a Straddle. Let us say the NIFTY is trading around 6200. So Buy 6200 CE and 6200 PE in equal quantities. Since we are expecting a BIG Move of more than 200 points one leg would be in profit (more than double the original price) and the other leg would be in a loss.

But it is too early to think about it now. Now just play as per your risk / reward plan and preserve your capital.

 

[bapu4]

Playing for Election results.

It is too early to play/plan for Elections now. Normally it is better to go for a Straddle just one or Two days before the election result. Those who don't know what is a Straddle. Let us say the NIFTY is trading around 6200. So Buy 6200 CE and 6200 PE in equal quantities. Since we are expecting a BIG Move of more than 200 points one leg would be in profit (more than double the original price) and the other leg would be in a loss.

But it is too early to think about it now. Now just play as per your risk / reward plan and preserve your capital.

Hi Bro,
Ya I agree,I think we should consider the time decay if some one is plaing May option in march or april,I think may options should be thought in may only!Those who wana pay for time decay can buy!But ya selling options may be a good Idea as time decay will be on sellar's side but buying ,no way.correct me if I am wrong.

 

[Somatung]

Hi Bro,
Ya I agree,I think we should consider the time decay if some one is plaing May option in march or april,I think may options should be thought in may only!Those who wana pay for time decay can buy!But ya selling options may be a good Idea as time decay will be on sellar's side but buying ,no way.correct me if I am wrong.

There is no being about not wrong or wrong. It is about the trader by himself who knows what he does and when he has to act according to what he knows and how his strategies is/are defined and work. If you today implement a strategy the short or long way is not the final question or point. If you do not know how to handle those strategy/s at the critical levels (and what ever you choose, chances that market will touch your levels is always given), then you any have lost your investment by what ever you do/trade. Learn and consider this first before trying to valuate any kind of trading/strategy. This will be a lot of work and will need a lot of live trading experience from your side. Good luck.

 

[bapu4]

Hi,
Can any one tell me where on NSE site I can locate Historical vola and Implied vola togather?
Tx

 

[bapu4]

There is no being about not wrong or wrong. It is about the trader by himself who knows what he does and when he has to act according to what he knows and how his strategies is/are defined and work. If you today implement a strategy the short or long way is not the final question or point. If you do not know how to handle those strategy/s at the critical levels (and what ever you choose, chances that market will touch your levels is always given), then you any have lost your investment by what ever you do/trade. Learn and consider this first before trying to valuate any kind of trading/strategy. This will be a lot of work and will need a lot of live trading experience from your side. Good luck.

Hi,
Can you elaborate with example?
Tx

 

[healthraj]

Hi,
Can any one tell me where on NSE site I can locate Historical vola and Implied vola togather?
Tx

For Historical volatility, use the FOVOLT. You can see a sheet called FOVOLT in OAT. In NSEIndia.com you can see it in

http://www.nseindia.com/products/content/derivatives/equities/homepage_fo.htm

Look for daily Volatility.

The Implied VOLT (Look for the column IV) is in the Options Chain table

So I am not sure if you will find it together

 

[Somatung]

Hi,
Can you elaborate with example?
Tx

@Bapu

Did you read my post in dept before you made the above post? If not, then read it again and you will have your answer. In option trading there are easily a few dozen of different kind of strategies. Now where/with which strategy would you begin if I would ask you to show any elaboration with example?