NIFTY Options Trading by RAJ
- Thread starter healthraj
- Start date
- Tags nifty options chain raj oat
What kind of strategies do you trade and are they all the time successful?
Take care dear friend
Take care dear friend
YES !!! ALL MY STATIC STRATEGIES ARE 100% SUCCESSFUL SINCE LAST 2 YEARS!!!
BECAUSE AT THE END OF IT, IT DELIVERED WHAT IT SAID AT THE SAID LEVELS IRRESPECTIVE OF PROFIT OR LOSS.... IT WORKED !!!:clap::clap:
SO GOT CURIOUS ABOUT YOUR WORD '' FAIL "
NO FIGHT BABA :thumb::thumb:
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@Healthraj
The strategy has its good and its bad sides. Never mind about this. As you tell by your self: If it is understood how to manage each leg according to market moves and IMV on the options we use, no problem by what is done.
As you help others in a very good way, lets expand your post with the following: You even can play with the MM and change the amount of legs on either side to ad risk or take out risk according to market moves and IMV. An other trick to reduce your risk on the side you are absolute open (In case you do not know this): Just buy wings otm on those side and your risk is limited. I hope you have some kind of option strategy analyzing software, so you will see what I mean when you start to play around with those idea.
Take care and see you around
The strategy has its good and its bad sides. Never mind about this. As you tell by your self: If it is understood how to manage each leg according to market moves and IMV on the options we use, no problem by what is done.
As you help others in a very good way, lets expand your post with the following: You even can play with the MM and change the amount of legs on either side to ad risk or take out risk according to market moves and IMV. An other trick to reduce your risk on the side you are absolute open (In case you do not know this): Just buy wings otm on those side and your risk is limited. I hope you have some kind of option strategy analyzing software, so you will see what I mean when you start to play around with those idea.
Take care and see you around
I guess, right answer would be go for near month initially since the premium would be low and if need be roll over to next month's otm option.
Thanks and regards.
RAJ coming back to your trades...
you have short strangle of 6000 PE & 7000 CE with a credit of Rs.280 (can you give the price that you written these)
you made a profit of 25+100 through directional based trading
lets also track short straddle price after your inputs of writing price
now hold 6900 PE @ 255 right?
please keep posting the updates raj as it will be helpful for all of us...
you have short strangle of 6000 PE & 7000 CE with a credit of Rs.280 (can you give the price that you written these)
you made a profit of 25+100 through directional based trading
lets also track short straddle price after your inputs of writing price
now hold 6900 PE @ 255 right?
please keep posting the updates raj as it will be helpful for all of us...
agreed raj.... but keep posting
as i am thinking of just covered calls or covered puts when we are good at direction and ok with legging....
like now your view is down what can be done is short the NF and sell the ATM PUT...
if market went against, you have fair chance to exit
if it went down then leg out of option written:thumb:
by default it have very high potential for profits and can be played well during HIGH IVs
what s your take?
as i am thinking of just covered calls or covered puts when we are good at direction and ok with legging....
like now your view is down what can be done is short the NF and sell the ATM PUT...
if market went against, you have fair chance to exit
if it went down then leg out of option written:thumb:
by default it have very high potential for profits and can be played well during HIGH IVs
what s your take?
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@Gmt
If you have the strategy implemented with June options, then you can risk your limit with otm option from June series. In this case the profit loss from the trade is absolute clear defined.
If you go for a current (May) otm option leg, you have a credit spread on the closed side and you have a calendar spread on the side you want to minimize the risk.
Now should we buy an option leg from this month only because of the cheaper premium? Let's assume today you want to protect your JUN trade with a leg from the 6000 strike level. You want to roll this MAY leg into the JUN leg at end of the month May. Kindly compare the prices now from the May 6000 Nifty strike level and the one from the JUN 6000 Nifty strike level. What do you see today when you compare the prices of those two options? Wouldn't it be cheaper in this specific case today to buy now directly the JUN options instead to roll the MAY option leg?
May 2014 series: http://i58.tinypic.com/168h2yd.png
Jun 2014 series: http://i62.tinypic.com/29fbkp1.png
As every thing in option trading: It depends on the reason how and why you want to use this option leg. Is it only for part time protection, you may go for the May option leg to safe some money. If you always want to be protected you can go directly for the Jun option leg. Each personals choice. As Toughard correctly mentioned: Each added insurance leg (long leg) will have an impact of the current profit we could make with this strategy at the moment. On the other hand: We can combine our insurance legs in a way that we are suddenly in a position in which the before unlimited loss side is an unlimited profit side. But that is an other story.
Take care
If you have the strategy implemented with June options, then you can risk your limit with otm option from June series. In this case the profit loss from the trade is absolute clear defined.
If you go for a current (May) otm option leg, you have a credit spread on the closed side and you have a calendar spread on the side you want to minimize the risk.
Now should we buy an option leg from this month only because of the cheaper premium? Let's assume today you want to protect your JUN trade with a leg from the 6000 strike level. You want to roll this MAY leg into the JUN leg at end of the month May. Kindly compare the prices now from the May 6000 Nifty strike level and the one from the JUN 6000 Nifty strike level. What do you see today when you compare the prices of those two options? Wouldn't it be cheaper in this specific case today to buy now directly the JUN options instead to roll the MAY option leg?
May 2014 series: http://i58.tinypic.com/168h2yd.png
Jun 2014 series: http://i62.tinypic.com/29fbkp1.png
As every thing in option trading: It depends on the reason how and why you want to use this option leg. Is it only for part time protection, you may go for the May option leg to safe some money. If you always want to be protected you can go directly for the Jun option leg. Each personals choice. As Toughard correctly mentioned: Each added insurance leg (long leg) will have an impact of the current profit we could make with this strategy at the moment. On the other hand: We can combine our insurance legs in a way that we are suddenly in a position in which the before unlimited loss side is an unlimited profit side. But that is an other story.
Take care
sir
last few months i observe in nifty options total contracts traded 1 , turnover in lacs showing in 3.9 how it possible tell me sir
if you want clarity see may 2014 nifty 7750 call option his one month data you see the my question how it possible tell me sir
one contract is traded mean one buy and one cell that mean 5200/- rupees is the turnover but how 3.9 lacs in turnover
last few months i observe in nifty options total contracts traded 1 , turnover in lacs showing in 3.9 how it possible tell me sir
if you want clarity see may 2014 nifty 7750 call option his one month data you see the my question how it possible tell me sir
one contract is traded mean one buy and one cell that mean 5200/- rupees is the turnover but how 3.9 lacs in turnover
@Gmt
If you have the strategy implemented with June options, then you can risk your limit with otm option from June series. In this case the profit loss from the trade is absolute clear defined.
If you go for a current (May) otm option leg, you have a credit spread on the closed side and you have a calendar spread on the side you want to minimize the risk.
Now should we buy an option leg from this month only because of the cheaper premium? Let's assume today you want to protect your JUN trade with a leg from the 6000 strike level. You want to roll this MAY leg into the JUN leg at end of the month May. Kindly compare the prices now from the May 6000 Nifty strike level and the one from the JUN 6000 Nifty strike level. What do you see today when you compare the prices of those two options? Wouldn't it be cheaper in this specific case today to buy now directly the JUN options instead to roll the MAY option leg?
May 2014 series: http://i58.tinypic.com/168h2yd.png
Jun 2014 series: http://i62.tinypic.com/29fbkp1.png
As every thing in option trading: It depends on the reason how and why you want to use this option leg. Is it only for part time protection, you may go for the May option leg to safe some money. If you always want to be protected you can go directly for the Jun option leg. Each personals choice. As Toughard correctly mentioned: Each added insurance leg (long leg) will have an impact of the current profit we could make with this strategy at the moment. On the other hand: We can combine our insurance legs in a way that we are suddenly in a position in which the before unlimited loss side is an unlimited profit side. But that is an other story.
Take care
If you have the strategy implemented with June options, then you can risk your limit with otm option from June series. In this case the profit loss from the trade is absolute clear defined.
If you go for a current (May) otm option leg, you have a credit spread on the closed side and you have a calendar spread on the side you want to minimize the risk.
Now should we buy an option leg from this month only because of the cheaper premium? Let's assume today you want to protect your JUN trade with a leg from the 6000 strike level. You want to roll this MAY leg into the JUN leg at end of the month May. Kindly compare the prices now from the May 6000 Nifty strike level and the one from the JUN 6000 Nifty strike level. What do you see today when you compare the prices of those two options? Wouldn't it be cheaper in this specific case today to buy now directly the JUN options instead to roll the MAY option leg?
May 2014 series: http://i58.tinypic.com/168h2yd.png
Jun 2014 series: http://i62.tinypic.com/29fbkp1.png
As every thing in option trading: It depends on the reason how and why you want to use this option leg. Is it only for part time protection, you may go for the May option leg to safe some money. If you always want to be protected you can go directly for the Jun option leg. Each personals choice. As Toughard correctly mentioned: Each added insurance leg (long leg) will have an impact of the current profit we could make with this strategy at the moment. On the other hand: We can combine our insurance legs in a way that we are suddenly in a position in which the before unlimited loss side is an unlimited profit side. But that is an other story.
Take care
You do remember my post in ankur's thread.
I sold one lot June 6000C/6000P in Jan when vola was low.
I bought back 6000P leg with 200 points profit but left 6000C open.
6000C sold in Jan for 532 is at 948.95, loss of 416.95 points, net loss of 216.95 points.
In this case, it may be prudent to book loss rather than taking insurance by buying otm call option.
I know I handled this trade badly, but have learnt a good lesson.
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