NIFTY Options Trading by RAJ

[Somatung]

Thanks Dan. That makes it clear.

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.

@Gmt

If you already have/had a loss by what you told, then the insurance policy is only one part of the whole game. In such cases you even need to start to watch and manage this trade daily very actively through different plays with MM and strategies in case you not want to take this loss as it is. To explain this here in dept would go behind the scope of this or any other thread here in the forum.

To avoid such above mentioned trading, which can and will happen to starters in short selling option strategies, be absolute clear about how and when to implement your insurance policy in the market. Be also absolute sure about how to organize your stop loss philosophy in case you not can watch your short option trades at any time.

Take care

 

[gmt900]

@Gmt

If you already have/had a loss by what you told, then the insurance policy is only one part of the whole game. In such cases you even need to start to watch and manage this trade daily very actively through different plays with MM and strategies. To explain this here in dept would go behind the scope of this or any other thread here in the forum.

To avoid such above mentioned trading, which can and will happen to starters in short selling option strategies, be absolute clear about how and when to implement your insurance policy in the market. Be also absolute sure about how to organize your stop loss philosophy in case you not can watch your short option trades at any time.

Take care

Yes sir. Will follow this advice in future

 

[healthraj]

Let us say we sold the NIFTY MAY 6000PE-7000CE Pair for 280. My Long Call / Put should not be more than say 310. Technically it would not be good if it is below 280 also. That Way I also finance my Long Call/Put using the Pair that I have sold. I mean when you SELL the Pair technically money comes into your account and when you Buy (Long Call / Put) Money goes out of your account.

Assuming if somebody had to take a positions today.
Case 1 : SHORT SELL 6000PE-7000CE @ 240. LONG 6900PE @ 250-255. - Outflow is 15 points - BIAS is DOWN.
Case 1 : SHORT SELL 6000PE-7000CE @ 240. LONG 6900CE @ 250-255. - Outflow is 15 points - BIAS is UP.

Both the 5900CE and 5900PE are trading around 250-255.

6000PE-7000CE Sold @ 240 is now 190. My bias was down and so the 6900PE bought at 255 is now at 277. Overall profit of 75 points.

The 6000Pe-7000CE is held from 15-APR from 280 to now 190.

Booked Partial profit for 6900 PE.

As per the charts, Will try and hold this till 6720, Where I am expecting a Reversal. The MAX Pain is also at 6700, where we might see a bounce. So will definitely close the 6900PE @ around 6720.

Why 6720 ?

In the Hourly charts, the Supports are at 6770 SPOT and 6720 SPOT. Now trading below pivot (6822 SPOT)
In the Daily charts, the Pivot is ar 6720 Futures.
In the Weekly charts the First support (R1) will come at 6720 Futures. Now it is below R2(6950 Futures).
In the Monthly Charts there is a SELL at 6887 Futures.

 

[toughard]

6000PE-7000CE Sold @ 240 is now 190. My bias was down and so the 6900PE bought at 255 is now at 277. Overall profit of 75 points.

The 6000Pe-7000CE is held from 15-APR from 280 to now 190.

Booked Partial profit for 6900 PE.

As per the charts, Will try and hold this till 6720, Where I am expecting a Reversal. The MAX Pain is also at 6700, where we might see a bounce. So will definitely close the 6900PE @ around 6720.

Why 6720 ?

In the Hourly charts, the Supports are at 6770 SPOT and 6720 SPOT. Now trading below pivot (6822 SPOT)
In the Daily charts, the Pivot is ar 6720 Futures.
In the Weekly charts the First support (R1) will come at 6720 Futures. Now it is below R2(6950 Futures).
In the Monthly Charts there is a SELL at 6887 Futures.

Booked Partial profit for 6900 PE means you had how many lots?

 

[sanjeev258380]

hI RAJ ,
Just want to ask you one question..do you really entered in 6000 pe n 7000ce pair..or u just... doing ppr trading..and showing us.

 

[komalagarwal]

Raj sir and other senior members, Today i have gone over starting pages of this thread and related thread under section Advanced trading strategies so after million thanks for your hard work I am eager to know that does this system helps in swing trades.
I have opened trading account last week and so far liked the concept of 200 MA and gann for detecting swing trades but thats too i am in initial stage.Like every trader here I too dont wanna loose money as its my pocket money invested and I am targeting a moderate return with atleast 15% return p.a. I am pursuing eco(hons) so have know-how about markets. My post may not seems to be relevant here but after seeing your knowledge about the subject and jamboree of experienced traders here lured me to post my concern here as i am very much concerned for loss. yours/anybody's even single line answer will serve the purpose.I have also posted concern in other forum but in vain.(May be they are busy in earning or are same like me,searching their answers)

 

[gargindia]

Raj sir and other senior members, Today i have gone over starting pages of this thread and related thread under section Advanced trading strategies so after million thanks for your hard work I am eager to know that does this system helps in swing trades.
I have opened trading account last week and so far liked the concept of 200 MA and gann for detecting swing trades but thats too i am in initial stage.Like every trader here I too dont wanna loose money as its my pocket money invested and I am targeting a moderate return with atleast 15% return p.a. I am pursuing eco(hons) so have know-how about markets. My post may not seems to be relevant here but after seeing your knowledge about the subject and jamboree of experienced traders here lured me to post my concern here as i am very much concerned for loss. yours/anybody's even single line answer will serve the purpose.I have also posted concern in other forum but in vain.(May be they are busy in earning or are same like me,searching their answers)

Hi komal

Stapes to the Market Road

Do not jump in the market without knowing ABCD of market
Do your homework
as you concerned for loss, At the beginning Options Trading is hard for you so first go for swing trading

now you really want to be a part of market than go through bellow links step by step ....

38 steps to becoming a trader
http://www.traderji.com/words-wisdom/253-38-steps-becoming-trader.html

Teach A Man To Fish And.........
http://www.traderji.com/technical-analysis/6072-teach-man-fish.html

Quadra Safe Trading Strategy - I
http://www.traderji.com/technical-analysis/68719-quadra-safe-trading-strategy-i.html

Price action with Candlestick Analysis(No indicators)
http://www.traderji.com/technical-a...ction-candlestick-analysis-no-indicators.html

i hope this will help you, and thanks to the seniors who did this great work four new bees like up.....

good luck on the path of trading journey

 

[komalagarwal]

wonderful threads.... thanks a lot :thumb:

 

[Options_Trader]

thank you....

you said Even static strategies fail from time to time

can you give some example? & how?

Here is an example with calendar spread.

I made a calendar spread with short March call and long Apr call. On expiry day, there was a sudden spike in NF March but no increment in NF Apr. This resulted in a loss from my short leg while the long leg remained same. In panic, I booked my position at break-even.

 

[toughard]

Here is an example with calendar spread.

I made a calendar spread with short March call and long Apr call. On expiry day, there was a sudden spike in NF March but no increment in NF Apr. This resulted in a loss from my short leg while the long leg remained same. In panic, I booked my position at break-even.

is calender spread a static strategy???