NIFTY Options Trading by RAJ

[bapu4]

@Healthraj

No problem with this, as long as MAX Pain is not used as the ONE and only thing to take decisions for any trades. Probably here some do hard with it and take it as the ONE thing. I am sure you use other tools and common sense to make up your mind about the market and not only the MAX Pain tool.

@Bapu

Sorry, but no party this time. The enemies (Time decay and market moves) have been to strong this time and did what ever they could to blame you. Guess you still enjoyed the ride of hope. Now you decided to go for the MAR 5900 put @ 12.15. What made up the mind to do so? One thing you have to be clear about: Buying far out of the money options (otm) is a business which leads most of the time to a loss in the long run. As market must move in the direction you wish (and this quit a few houndert points), and time is passing, you will face the same problems again. A cheap price not necessarily means a good price. Most buy those options because they think it is a cheap investment with high profit potential. But this is not the case, other wise we all only would buy such options and drive the biggest possible cars on the world. Probably you must change your mind set to an other kind of option trading like put and call spreads. This will limit your profit potential and it also limits your loss potential. Of course, this will be your decision and non of us can tell you what you may or may not can do. As you already choosed again the ride of hope, it is yours. Some times wishes become real and this most of the time by helping to make them real = Trade your options and not just hold and wait. See you around.

@SuperSayian

Well, looks this time you not made the "Super", even you used super words how great your idea seemed to be and how happy people will be. Never mind and as you told and learned by your self: Never fight the Tape, specially when only done on hope and pure speculation, as the details are not understood. What will be your next option trade you like to take to make you feel again to be on any ride which is related to trading?

Hi Bro Somatung,
I would reply as follows,
1.The expiry was expected 6190-6210.
2.If that would happen I had a very good chance of earning.
3.Nifty was 300 points above the recent low of 5930 in my calculation it runs in multiple of 30,60,90 and so on.
4.200-300 points for in a week are nothing for nifty so tho it is OTM but of medium type and not deep OTM.
only I think I shud have waited for next monday to have a clear picture thats my mistake.
5.I work with very meager money and can't afford call and put at a time .
6.See on 1st there is nomoon day and generally market changes its trend every no moon and fullmoon .
But yes these are all not full proof like studying the Greeks and other things and then doing it.Well what i can do is can keep tracking OIs thats all,or the best I will sell it on friday,because near OTm demands call and put both other wise losses are bigger.
What Nifty can do will it cross 6350-60 (the earlier high) without any support of economy?Nothing has changed-Ya one thing is there Reliance -that can push the Nifty but thats in later half of march or even beyond that-not now.
Thanx every body for criticism,I know I am bad at options but I will learn it with your criticism.
Tx

 

[Somatung]

Hi Bro Somatung,
I would reply as follows,
1.The expiry was expected 6190-6210.
2.If that would happen I had a very good chance of earning.
3.Nifty was 300 points above the recent low of 5930 in my calculation it runs in multiple of 30,60,90 and so on.
4.200-300 points for in a week are nothing for nifty so tho it is OTM but of medium type and not deep OTM.
only I think I shud have waited for next monday to have a clear picture thats my mistake.
5.I work with very meager money and can't afford call and put at a time .
6.See on 1st there is nomoon day and generally market changes its trend every no moon and fullmoon .
But yes these are all not full proof like studying the Greeks and other things and then doing it.Well what i can do is can keep tracking OIs thats all,or the best I will sell it on friday,because near OTm demands call and put both other wise losses are bigger.
What Nifty can do will it cross 6350-60 (the earlier high) without any support of economy?Nothing has changed-Ya one thing is there Reliance -that can push the Nifty but thats in later half of march or even beyond that-not now.
Thanx every body for criticism,I know I am bad at options but I will learn it with your criticism.
Tx

@Bapu

Do not worry, I am with you at any time. I do not feel to criticize you, other wise I would haven choosen quit different words. Take it as: Food for thoughts what is posted from my side. We are all here to share some knowledge and nothing else. Ok. Offer still stays: If you in profit, let's party here in the forum and other wise lets do an other analyzes why it may not worked or even worked.

 

[healthraj]

@Healthraj

No problem with this, as long as MAX Pain is not used as the ONE and only thing to take decisions for any trades. Probably here some do hard with it and take it as the ONE thing. I am sure you use other tools and common sense to make up your mind about the market and not only the MAX Pain tool.

@Bapu

Sorry, but no party this time. The enemies (Time decay and market moves) have been to strong this time and did what ever they could to blame you. Guess you still enjoyed the ride of hope. Now you decided to go for the MAR 5900 put @ 12.15. What made up the mind to do so? One thing you have to be clear about: Buying far out of the money options (otm) is a business which leads most of the time to a loss in the long run. As market must move in the direction you wish (and this quit a few houndert points), and time is passing, you will face the same problems again. A cheap price not necessarily means a good price. Most buy those options because they think it is a cheap investment with high profit potential. But this is not the case, other wise we all only would buy such options and drive the biggest possible cars on the world. Probably you must change your mind set to an other kind of option trading like put and call spreads. This will limit your profit potential and it also limits your loss potential. Of course, this will be your decision and non of us can tell you what you may or may not can do. As you already choosed again the ride of hope, it is yours. Some times wishes become real and this most of the time by helping to make them real = Trade your options and not just hold and wait. See you around.

@SuperSayian

Well, looks this time you not made the "Super", even you used super words how great your idea seemed to be and how happy people will be. Never mind and as you told and learned by your self: Never fight the Tape, specially when only done on hope and pure speculation, as the details are not understood. What will be your next option trade you like to take to make you feel again to be on any ride which is related to trading?

@Somatung,

Every month I track the performance of MAX Pain and so there is nothing special. Those who are trading with Options use the MAX Pain to trade near the expiry.

But I think you have a lot of free advice for everybody

 

[Somatung]

@Somatung,

Every month I track the performance of MAX Pain and so there is nothing special. Those who are trading with Options use the MAX Pain to trade near the expiry.

But I think you have a lot of free advice for everybody

Yes, I have seen this. Even Sir Columbus tracks openly the OI daily in his thread. Nothing special. According to this post: http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-439.html#post938859 you did not sound satisfied with the result of this month. So my post was related to those post and even to the following post of yours: http://www.traderji.com/trading-dia...daily-higer-lower-timeframe-5.html#post938533 in which you clearly declare the use of many other tools beside MAX pain. Guess the free advise comment from you is now cleared in all the details according to any comment spotet in your direction.

 

[healthraj]

Yes, I have seen this. Even Sir Columbus tracks openly the OI daily in his thread. Nothing special. According to this post: http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-439.html#post938859 you did not sound satisfied with the result of this month. So my post was related to those post and even to the following post of yours: http://www.traderji.com/trading-dia...daily-higer-lower-timeframe-5.html#post938533 in which you clearly declare the use of many other tools beside MAX pain. Guess the free advise comment from you is now cleared in all the details according to any comment spotet in your direction.

Hi Somatung,

I think you are not getting to the point.

Are you using MAX Pain to trade near the expiry?
If Yes, fine. Otherwise you might not fully understand the significance of my message.

I have been tracking the MAX Pain from Jul13 onwards. And 6 out 8 times NIFTY expired near the MAX Pain. (There is one more month ) And this month it did not follow the MAX Pain.

For somebody who is trading with MAX Pain, it is something to think about and find a solution.

Yes in FEB-14 Series, as a technical trader, I am not fully convinced about the expiry and the closing.

 

[bapu4]

@Bapu

Do not worry, I am with you at any time. I do not feel to criticize you, other wise I would haven choosen quit different words. Take it as: Food for thoughts what is posted from my side. We are all here to share some knowledge and nothing else. Ok. Offer still stays: If you in profit, let's party here in the forum and other wise lets do an other analyzes why it may not worked or even worked.

Hi Bro Somatung,
Thanks for you favouring words,by 'crticism' I meant 'comments' and they are always welcome.I can understand by your language ,how good are you at heart,
so comments are always welcome.I am nothing in comparison with stalwarts on this thread,actually I am retired person having source of income from interest that I have kept in banks which is barely sufficient to meet the month.so cant afford the strategies in option.I do homeopathy and open for any help to any one on this forum for help,I think I am good at it.It has got cure for paralysis,bp,sugar,kidney stone,piles and hoast of many other ailment,so any one wants help can PM me.
Tx

 

[Somatung]

Hi Somatung,

I think you are not getting to the point.

Are you using MAX Pain to trade near the expiry?
If Yes, fine. Otherwise you might not fully understand the significance of my message.

I have been tracking the MAX Pain from Jul13 onwards. And 6 out 8 times NIFTY expired near the MAX Pain. (There is one more month ) And this month it did not follow the MAX Pain.

For somebody who is trading with MAX Pain, it is something to think about and find a solution.

Yes in FEB-14 Series, as a technical trader, I am not fully convinced about the expiry and the closing.

Sir

I absolute respect your view and what you do. If you criticize your system by your self by posting: It has not worked perfectly in this month series, then it has nothing to do with me. You may get that on your wrong feet. I even supported you by posting my post and telling to use other tools as well. MAX Pain is a tool like any other tool: Some times the home run is made with it and other times we missed it just by this little ..... points. No reason to get upset. Many more months of trading are in front, so why look back and not forwards?

 

[umash2000]

Hi Somatung,

I think you are not getting to the point.

Are you using MAX Pain to trade near the expiry?
If Yes, fine. Otherwise you might not fully understand the significance of my message.

I have been tracking the MAX Pain from Jul13 onwards. And 6 out 8 times NIFTY expired near the MAX Pain. (There is one more month ) And this month it did not follow the MAX Pain.

For somebody who is trading with MAX Pain, it is something to think about and find a solution.

Yes in FEB-14 Series, as a technical trader, I am not fully convinced about the expiry and the closing.

Hi Raj,

Started following Option Pain based on ur posts here.Realised that it is not required that expiry should happen only close to Max option pain.

If both broader trend and Daily trend are in the same direction,one could expect nifty to move much away from Max option pain.(whether positive or negative).

If broad trend & Daily trend are in opposite direction,one could expect nifty to close around Max option pain.

Max pain is a point in between 20ema & close normally.Rare occasions where they are together.

Broad trend:based on MACD signal positivity or negativity
Daily trend:MACD positivity or negativity histogram

Present feb expiry is a case where Broad trend was negative & Daily trend positive.Max option pain was at 6200.Close at 6239.(In and around 50 points)
Pls check..

 

[SuperSaiyan]

@SuperSayian

Well, looks this time you not made the "Super", even you used super words how great your idea seemed to be and how happy people will be. Never mind and as you told and learned by your self: Never fight the Tape, specially when only done on hope and pure speculation, as the details are not understood. What will be your next option trade you like to take to make you feel again to be on any ride which is related to trading?
Reply With Quote

ty for words @Somatung

specially when only done on hope and pure speculation, well my hope and speculation resulted in 30% profit it hitted R.s 11 had turned R.s16
My aim was x 4 x5 times 48 .

You don;t know how strong my Branches are so save it bro
I can tell u... ppls don;t need to be adviced when they are in profit. even if anyone bought after reading my statement i assume they got out at 16 hope so.
Beside i can say u no one followed my trade .. and i really hope they didn;t.

I have made enough in past to cover my loss. i felt sad for 1 day then today i did n;t even remember i had loss untill i read your statement lol
" Farak nahi padta hai .... Trading is war you don;t follow rules u will loose

To option trader here read this and hope it helps you


i found in my research... I was right when i entered my trade. my R.s11 put turned into R.s 16 and same turned into 0 what i did was i married that put lol.
WTF went wrong was i decided to carry forward option and second mistake was i didn;t cutted my loss when i was at 30% loss. Third mistake was i trippled quantity ...i was fighting the tape forgetting i had time limit.....I forgot it;s not FUTURES it;s OPtion date = END zero.

I have decided hence forward i will never carry forward option that is in loss .
Will cut option at 30% no matter whats so ever
Never try to average option.whats loss is lost forget it Tormorrow is new begining .

Soemthing tell me My Trading style suits day trading for option Buy sell same day.
i don;t know lets see ...
I have major portion of money in futures...

GOOD LUCK
like said i never make same mistake twice

In trading it doesn;t matter weather u loose or weather u win. All matter is you did your own research Profit it yours ..Loss is was yours .

Laugh in loss :clap: ... Turn go evil in profits Live life king size

All i can say is ppls will be happy not to the mistake i made . They sure be Happy

 

[healthraj]

Hi Raj,

Started following Option Pain based on ur posts here.Realised that it is not required that expiry should happen only close to Max option pain.

If both broader trend and Daily trend are in the same direction,one could expect nifty to move much away from Max option pain.(whether positive or negative).

If broad trend & Daily trend are in opposite direction,one could expect nifty to close around Max option pain.

Max pain is a point in between 20ema & close normally.Rare occasions where they are together.

Broad trend:based on MACD signal positivity or negativity
Daily trend:MACD positivity or negativity histogram

Present feb expiry is a case where Broad trend was negative & Daily trend positive.Max option pain was at 6200.Close at 6239.(In and around 50 points)
Pls check..

Thanks Umash2000. So this is what I was expecting, where I have something to learn. I don't use any indicators. Can you please explain the meaning of "Broad Trend was negative" and "Daily Trend Positive".

I understand the Daily Trend was positive. Can we say that Broad Trend is above Daily Trend, say for example Weekly Trend.

In other words Weekly Trend was negative and Daily, Hourly Trends were positive and NIFTY chose the Daily trend ??

Can we also say that If both the daily Trend and Broad Trend are in Either positive or negative then MAX/Option Pain will work?