NIFTY Options Trading by RAJ

[nepolian]

Sorry that you lost money in option trading. Did you try to find out the reason for it.
But why do you think that writing option is sure shot way of earning money. I think that writing options is a double edge sword.

Actually till now I use to buy Straddles.... which ate the premium every time. Writing both side may have the advantage of Time Value...

And also after reading this thread... and the rules by Raj sir... I think it's a superb invention... A new way to trade options rather than gambling...

 

[soumanag]

I have Shorted..
8800CE @ 87
&
8700PE @ 89

this is my first options writing...

in past i have lost my half of the capital in buying options... actually i am scared writing options... hope i have done correct thing?

Hi,
By shorting 8800CE & 8700PE u are betting that the market will remain between these two ranges till expiry and in that case would make a cool profit of 175 points :clap: Hope you have considered adverse cases also such as nifty going to 8500 or 9000 (where maximum OI resides).
Please consider that option selling is unlimited risk limited return strategy. Might want to google short straddle strategy. Raj's strategy and tool gives us a way to monitor positions on preemptive basis...
Best of luck with your 1st trade though :thumb::thumb:

 

[healthraj]

Hi,
By shorting 8800CE & 8700PE u are betting that the market will remain between these two ranges till expiry and in that case would make a cool profit of 175 points :clap: Hope you have considered adverse cases also such as nifty going to 8500 or 9000 (where maximum OI resides).
Please consider that option selling is unlimited risk limited return strategy. Might want to google short straddle strategy. Raj's strategy and tool gives us a way to monitor positions on preemptive basis...
Best of luck with your 1st trade though :thumb::thumb:

Agreed 8700-8800 pair isvery narrow to short. Convert to 8400 8800 pair 8500 8800 pair. Ideal pair value to short is 120. One leg should have 90 and another leg should have 30. For example 8800ce@90 and 8500pe@30

 

[Riskyman]

Agreed 8700-8800 pair isvery narrow to short. Convert to 8400 8800 pair 8500 8800 pair. Ideal pair value to short is 120. One leg should have 90 and another leg should have 30. For example 8800ce@90 and 8500pe@30

Very good advise here. 100 points is a very narrow range considering our beloved Nifty can trend more than 1% on certain days. Will give anyone a heartache.

 

[nepolian]

Agreed 8700-8800 pair isvery narrow to short. Convert to 8400 8800 pair 8500 8800 pair. Ideal pair value to short is 120. One leg should have 90 and another leg should have 30. For example 8800ce@90 and 8500pe@30

Ok raj ji.... actually i have just started to read the thread... also i dont have the tool... so i just saw max oi change pair and jumped...
thanks v.much for the advice...

 

[nepolian]

Hi,
By shorting 8800CE & 8700PE u are betting that the market will remain between these two ranges till expiry and in that case would make a cool profit of 175 points :clap: Hope you have considered adverse cases also such as nifty going to 8500 or 9000 (where maximum OI resides).
Please consider that option selling is unlimited risk limited return strategy. Might want to google short straddle strategy. Raj's strategy and tool gives us a way to monitor positions on preemptive basis...
Best of luck with your 1st trade though :thumb::thumb:

Hello sumanag ji...
Actually i didn't know that the ideal price of pair is near 95-120... and also i dont have the tool... i am searching raj ji's tool in this thread and then i will learn how to use and also i have just started to read the thread... so i am very novice.. i just saw MAX_OI_CHG in two strikes and jumped... :lol:

 

[sangram1705]

Agreed 8700-8800 pair isvery narrow to short. Convert to 8400 8800 pair 8500 8800 pair. Ideal pair value to short is 120. One leg should have 90 and another leg should have 30. For example 8800ce@90 and 8500pe@30

Besides NIFTY, how can we find the ideal pair value for banknifty & other stock futures?

thanks

 

[Riskyman]

i am searching raj ji's tool

:clap::clap::clap:

 

[soumanag]

Hello sumanag ji...
Actually i didn't know that the ideal price of pair is near 95-120... and also i dont have the tool... i am searching raj ji's tool in this thread and then i will learn how to use and also i have just started to read the thread... so i am very novice.. i just saw MAX_OI_CHG in two strikes and jumped... :lol:

Hi,
I just wanted you manage your risk and know what you were getting into . Follow the guideline provided by Raj in the earlier post and you will become very confident in a short time. The link for the tool given by Relish a few posts back. Just go back a couple of pages. Happy learning man ......:clap:

 

[soumanag]

Besides NIFTY, how can we find the ideal pair value for banknifty & other stock futures?

thanks

Hi Sangram,

BNF follows the same principle as NFT.... so no problem there however you will need twice the margin selling BNF options :lol: also the movement in BNF is mind boggling now a days and might give you cardiac problems :rofl:
I am not sure any of the members in this thread are applying this principle to other stock options though theoretically it should work. Personally I feel in stock specific trading the game is rigged against small retail traders due to insider information but I am a bit paranoid that way took me a long time to refrain from trading stock options and loosing money