NIFTY Options Trading by RAJ

[healthraj]

Dear RAJ,
pl explain how to choose strike price( things to look for selecting strike price) for nifty pair trading.will the strategy profitable irrespective of market direction. Is it necessary to adopt selling the options strategy? At what level/ price should we sell? should I sell at market price for both options or use limit price. Today, I tried yr methodology and used limit price. PE option clicked but not the CE option and suddenly due to bullishness, I landed in loss of 1000Rs. I sold pair of 7800CE+7600PE ( with 122 pts diff together).
Iguess I should have squared up both option together.
Kindly, suggest the closing technique of the trade and level of closing.
Regards,
abb

I am not aware any strategy which works "irrespective of Market direction". In my opinion, there is no such thing possible. Do not confuse "Neutral" with "Irrespective of market direction". Neutral is normally used to say a "FLAT" market. To me "FLAT" is also Direction. So either you should take an "UP" view, "DOWN" view or a "FLAT" view before taking a trade. I use Pairs to build some minimum protection.

For Pair Trading - You should sell at Market Price - Be careful using market price. I normally use NIFTY and so I don't feel any problem. But sometimes while selling say BANKNIFTY I had some problems because you don't get at the price you want. So I hope you understand what I mean by market price.

What was the price that you sold 7600PE ? What was the price that you sold 7800CE ?

Any Pair should be closed together unless otherwise you are sure about a Reversal and so can play with it accordingly


Please see post number 5455 - On how to select a Pair.

http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-546.html#post990506

 

[abb24]

Dear Raj,
Thanx for yr prompt reply.Yr advice to sell at market price has been noted and had I known or done this I would have earned a profit of 600Rs today. I should have squared up both options at the same time.I sold 7600 PE for 67, I m still holding 7800CE which was taken at 66.Kindly advice me regarding this. I m a novice in the field and trade following yr strategy. I m yr blind follower. I check yr post everyday.
Regards,
abb

 

[Option.Trader]

Dear Raj,
Thanx for yr prompt reply.Yr advice to sell at market price has been noted and had I known or done this I would have earned a profit of 600Rs today. I should have squared up both options at the same time.I sold 7600 PE for 67, I m still holding 7800CE which was taken at 66.Kindly advice me regarding this. I m a novice in the field and trade following yr strategy. I m yr blind follower. I check yr post everyday.
Regards,
abb

I don't think Raj is a tipster, he shares his system, it's upto each of us to decide what to do with our trades. You can ask a strategy question, but plain asking what to do with a thing you have bought is plain disrespectful. Encourage you to learn the system and if possible provide improvements, everybody wins

 

[SexyTrader]

I don't think Raj is a tipster, he shares his system, it's upto each of us to decide what to do with our trades. You can ask a strategy question, but plain asking what to do with a thing you have bought is plain disrespectful. Encourage you to learn the system and if possible provide improvements, everybody wins

Raj is an EXPERT......he offers guidance, not tips!

People looking for tips need to look elsewhere

 

[ratan_1976]

GM Raj, any update on Infy 3400 put? should square off on dip? or hold for some more time

 

[TraderRavi]

Raj is an EXPERT......he offers guidance, not tips!

People looking for tips need to look elsewhere

sexy , you are being naughty , u r promoting ur thread indirectly

 

[Option.Trader]

7800 ce chgoi building up more rapidly than 7700 pe, also looks like yesterday's rally was built on short covering, looking to go short either @7750 or a break of 7710

 

[lamerider]

7800 ce chgoi building up more rapidly than 7700 pe, also looks like yesterday's rally was built on short covering, looking to go short either @7750 or a break of 7710

The Chgoi is changing rapidly for both. keeping a very close eye. now the 7700pe up on the 7800ce by a good margin..

 

[yan]

holding 7600 pe @ 48 (bought )

7600 pe sold it @ 51.30:thumb:
Btw Thanks Raj vai
you should at-least hold it for overnight .

 

[healthraj]

Good morning to all..

As told Yesterday I am not trading today. I will may be SELL tomorrow if it is near 7790/7800.

In LTF there is a BULL Flag formation which could get over around 7705. So around 7705, It would be a BUY for at least 80 points.

The Options Data also indicates Bullishness till 7750.

For those who are wondering what I did with INFY 3400 Put. I close it in the morning. But Since INFY is trading above the Resistance, there was a good opportunity @ 3600 to SELL, Which I did not take.