NIFTY Options Trading by RAJ
- Thread starter healthraj
- Start date
- Tags nifty options chain raj oat
Futures Price with premium or discount will reflect on respective options...
when future is trading with premium, calls will be traded with that extra compared to puts and vice versa....
this is due to the fact that the underlying is not used to hedge by majority of option writers after considering shorting facility (you can not short SPOT underlying) ,funds (need full fund if you wana buy SPOT underlying) and Brokerage
when NIFTY spot is at exactly at multiples of 100 check the same...
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People might have seen the power of Volatility today. INDIAVIX down by 40% today. The largest drop in the last ~5 years
Even though the NIFTY moved 5 %, Since the VOLT moved down, if somebody had sold 6500-7500 Yesterday. Today they might be still be in profit. 6500PE lost 57 points and 7500CE gained only 16 points. So net profit is 40 points.
For SBIN If somebody sold 2100-2400, then since the VOLT came down from 70 to 40, the positions is still at a profit of 15 points. 2100PE has lost around 43 and 2400CE has gained only 28.
So two things very clear.
Better to buy ATM/ITM options.
When the VOLT is HIGH Sell the Pair.
Even though the NIFTY moved 5 %, Since the VOLT moved down, if somebody had sold 6500-7500 Yesterday. Today they might be still be in profit. 6500PE lost 57 points and 7500CE gained only 16 points. So net profit is 40 points.
For SBIN If somebody sold 2100-2400, then since the VOLT came down from 70 to 40, the positions is still at a profit of 15 points. 2100PE has lost around 43 and 2400CE has gained only 28.
So two things very clear.
Better to buy ATM/ITM options.
When the VOLT is HIGH Sell the Pair.
Last edited:
This was one of the stock where i had advised everybody to go Long because at 950 it was end of 2nd Wave and after that powerful Wave 3 take controls of everything.One of senior TJ member Dan has stated not to accumulate because it was falling like anything.With due respect to him,at that time LT was very close to 38.2 fib.Not sure how many of you have had taken position in this stock and earned hefty amount but this is one of the stock which has earned me a lot.
@Prabhsingh
You talk about this post: http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-409.html#post924184 (Next time kindly also post the link, so it is clear about which post you talk about.)
Now with due respect to you (after finding the post you talk about, as my first interpretation of your post was a bit different as you have seen because of not having this link), let me add some comments to this. There is no need of arguing with you, just let me add some points to your post. The view I post from comes from the experience I gathered during the crash of the dot com bubble. I was fully invested with my private capital at those time in stocks. In the company I was working for at those time, we also had share funds and hedge funds to manage. This just to give a little idea of the background.
Ok, here we go:
Now four months later you come to say that you recommended some thing. Well, averaging is not good and if you like to do so, then it is you who likes to do so. As you do not know the future of any chart, then it is pure anticipation that the chart may should go up once in the future (which not must be wrong, as by what ever we trade we have some kind of idea where market could go). Or you are an insider of the company or have the right connections to the right people and then you know what will happen with the stock in the coming future. But this most probably is not the case. So, if your trading system or your TA analyzes is/are build on anticipation and hopefully doing the right thing, that is your choice. And this is YOUR choice, but no way to tell others to do averaging. By the way: After such a long time I also can anticipate that covered calls, during at least Feb 2014 in this stock, was the 100% right thing to do at this time with huge profit.
Telling others to take over your system and trade with the same risk, which is build in this specific case on averaging losses, is not of much value, as each one has to know by him self what he trades and specially the risk he faces by adding to loss positions. As your stock has lost almost 30% percent in a very short time at those moment, and then was staying around that level for weeks, it was just hopping that it will recover what ever any wave says. (Here I could add a lot from the experience by staying in the market and acting live during the mentioned share crash, the recovery to a certain level and then the next fall and so on). Coming back to your share: After end of Mar 2014 the old high was reached again and here a new entry was shown. Not even one lot of averaging was needed to recover any thing. Averaging even again in this case was only rising the risk in the position and nothing else. Finally not even needed.
But that is not the final point. The point is: Losing 30% in one stock in our portfolio is not to recommend, the same as averaging is not to recommend for retail traders. Even in stocks a stop loss is a must. If there is a stop loss, the averaging game not even comes into play. The money safed through the stop loss can be invested in other stocks or in the index or be used for the margins for covered calls on other shares which are in a sideway mode.
If you are happy with averaging and make money with it some times, so it will be and that is good for you. Never mind about that. It even has to be respected and thats why I say: Arguing is not needed. On the other hand: Recommending averaging stocks, which are in loss, to normal retail traders is a risky game and should be out of questions. Here I stand to my word at any time. Stop loss is what has to be set on each share. Even 80 years ago some of the most successful stock traders already told to have a clear stop loss on any stock which is in your personal portfolio, even in any portfolio you/we.or who ever trade for other customers. If you are a biggy and have a volume of Mil of Rs in your stock portfolio, then you any way will have some other MM rules compare to the retail traders. Are you such a biggy?
You may are a good anticipate r some times by what you do, but if you are wrong, would you give back the money to the people who took you seriously here in this forum? Of course: NO. And you would stay in silent to not have any posts about your wrong anticipation. We all know that at the moment some are lucky/more right in what ever way in there anticipation, some of them start to post in the forum how good they are and how sure there anticipation is. But only then. Nevertheless:
I am happy for you that this time you made some money with this kind of increasing your risk, even there are better ways to ship around such possible/dangerous possible traps. Hopefully also your next investment will work in a positive manner. Take care and have a good start into the new week
You talk about this post: http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-409.html#post924184 (Next time kindly also post the link, so it is clear about which post you talk about.)
Now with due respect to you (after finding the post you talk about, as my first interpretation of your post was a bit different as you have seen because of not having this link), let me add some comments to this. There is no need of arguing with you, just let me add some points to your post. The view I post from comes from the experience I gathered during the crash of the dot com bubble. I was fully invested with my private capital at those time in stocks. In the company I was working for at those time, we also had share funds and hedge funds to manage. This just to give a little idea of the background.
Ok, here we go:
Now four months later you come to say that you recommended some thing. Well, averaging is not good and if you like to do so, then it is you who likes to do so. As you do not know the future of any chart, then it is pure anticipation that the chart may should go up once in the future (which not must be wrong, as by what ever we trade we have some kind of idea where market could go). Or you are an insider of the company or have the right connections to the right people and then you know what will happen with the stock in the coming future. But this most probably is not the case. So, if your trading system or your TA analyzes is/are build on anticipation and hopefully doing the right thing, that is your choice. And this is YOUR choice, but no way to tell others to do averaging. By the way: After such a long time I also can anticipate that covered calls, during at least Feb 2014 in this stock, was the 100% right thing to do at this time with huge profit.
Telling others to take over your system and trade with the same risk, which is build in this specific case on averaging losses, is not of much value, as each one has to know by him self what he trades and specially the risk he faces by adding to loss positions. As your stock has lost almost 30% percent in a very short time at those moment, and then was staying around that level for weeks, it was just hopping that it will recover what ever any wave says. (Here I could add a lot from the experience by staying in the market and acting live during the mentioned share crash, the recovery to a certain level and then the next fall and so on). Coming back to your share: After end of Mar 2014 the old high was reached again and here a new entry was shown. Not even one lot of averaging was needed to recover any thing. Averaging even again in this case was only rising the risk in the position and nothing else. Finally not even needed.
But that is not the final point. The point is: Losing 30% in one stock in our portfolio is not to recommend, the same as averaging is not to recommend for retail traders. Even in stocks a stop loss is a must. If there is a stop loss, the averaging game not even comes into play. The money safed through the stop loss can be invested in other stocks or in the index or be used for the margins for covered calls on other shares which are in a sideway mode.
If you are happy with averaging and make money with it some times, so it will be and that is good for you. Never mind about that. It even has to be respected and thats why I say: Arguing is not needed. On the other hand: Recommending averaging stocks, which are in loss, to normal retail traders is a risky game and should be out of questions. Here I stand to my word at any time. Stop loss is what has to be set on each share. Even 80 years ago some of the most successful stock traders already told to have a clear stop loss on any stock which is in your personal portfolio, even in any portfolio you/we.or who ever trade for other customers. If you are a biggy and have a volume of Mil of Rs in your stock portfolio, then you any way will have some other MM rules compare to the retail traders. Are you such a biggy?
You may are a good anticipate r some times by what you do, but if you are wrong, would you give back the money to the people who took you seriously here in this forum? Of course: NO. And you would stay in silent to not have any posts about your wrong anticipation. We all know that at the moment some are lucky/more right in what ever way in there anticipation, some of them start to post in the forum how good they are and how sure there anticipation is. But only then. Nevertheless:
I am happy for you that this time you made some money with this kind of increasing your risk, even there are better ways to ship around such possible/dangerous possible traps. Hopefully also your next investment will work in a positive manner. Take care and have a good start into the new week
Last edited:
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