NIFTY Options Trading by RAJ

How do you use OAT tool?

  • For Intraday Naked Options trading

    Votes: 58 37.7%
  • For Intraday Pair trading of Options

    Votes: 27 17.5%
  • For Intraday Futures trading

    Votes: 18 11.7%
  • For Positional Naked Options trading

    Votes: 35 22.7%
  • For Positional Pair trading of options

    Votes: 29 18.8%
  • For Positional Futures trading

    Votes: 11 7.1%
  • To trade in Cash market

    Votes: 13 8.4%
  • Overall trading has improved with OAT

    Votes: 27 17.5%
  • Understanding of Options has improved with OAT

    Votes: 57 37.0%

  • Total voters
    154
  • Poll closed .

mohan.sic

Well-Known Member
no that is for selecting pair (price of call option,put option)
---------------------------------------
trend up
put -9x.xx
call-2x.xx
trend down
call-9x.xx
put-2x.xx
--------------------------------------
EXAMPLE
trend up
sell the CE,PE options like this
put -98.35
call-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty
-------------------------------------
trend down
sell the CE,PE options like this
call-98.35
put-24.55
pair price-122.9
stoploss -20 points in nifty
-------------------------------------
i normally sell the pair around 120 to 130

karthik,

If these are intraday trades, why trading pairs?
In intraday if our view of trend is bullish we can buy a call or we can buy a put if trend is bearish ( with same stop loss as you preferred )
 
no that is for selecting pair (price of call option,put option)
---------------------------------------
trend up
put -9x.xx
call-2x.xx
trend down
call-9x.xx
put-2x.xx
--------------------------------------
EXAMPLE
trend up
sell the CE,PE options like this
put -98.35
call-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty
-------------------------------------
trend down
sell the CE,PE options like this
call-98.35
put-24.55
pair price-122.9
stoploss -20 points in nifty
-------------------------------------
i normally sell the pair around 120 to 130
So, If I have understood correctly, we have two conditions to satisfy.
1. Ratio MaxCOI Call/Put must be greater than 2-2.5
2. Combined Call and Put cost should be around 110-130..
additionally, SL is 20 points nifty movement and trend must be confirmed separately too, not from condition "1" only..
Regards
Srivastava
 

mvkarthik

Well-Known Member
karthik,

If these are intraday trades, why trading pairs?
In intraday if our view of trend is bullish we can buy a call or we can buy a put if trend is bearish ( with same stop loss as you preferred )
why trading pairs?

pair trading is for,traders who thinks capital protection is the
most important,and u can make profit of more than 70% per year
----------------------------
instead of selling pairs
u can also buy pair and make profits(i also do this)
------------------------------
buy signal in chart,buy signal in CHOI

trend up
call -9x.xx
put-2x.xx
--------------------------
sell signal in chart,sell signal in CHOI
trend down
put -9x.xx
call-2x.xx
-------------------------------
EXAMPLE
trend up
buy the CE,PE options like this
call-98.35
put-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty
-------------------------------------
trend down
buy the CE,PE options like this
put -98.35
call-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty
-------------------------------------
buying the pair around 100 to 110 is good
 

mvkarthik

Well-Known Member
So, If I have understood correctly, we have two conditions to satisfy.
1. Ratio MaxCOI Call/Put must be greater than 2-2.5
2. Combined Call and Put cost should be around 110-130..
additionally, SL is 20 points nifty movement and trend must be confirmed separately too, not from condition "1" only..
Regards
Srivastava
yes u r right
http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-741.html#post1078392
 


1st trade

nifty break 8200,heikin ashi in red,chart give sell
MAX CHOI ce8300 give sell

pair sell 121
exit 109.30

585.00 profit
----------------------------
2 trade
heikin ashi in red chart give sell,MAX CHOI ce8300 give sell

pair sell 129
exit at 120

450.00profit
------------------------------
3 trade
heikin ashi in red chart give sell,MAX CHOI give weak sell signal
so no pair trade
but i trade in nifty FUT mate profit of 50 points
-----------------------------------
4 trade
heikin ashi in red chart give sell,MAX CHOI give weak sell signal
so no pair trade
but i trade in nifty FUT mate loss of 20 points stoploss hot
Hi,
Can you please share the afl along with settings??
regards
 

mohan.sic

Well-Known Member
why trading pairs?

pair trading is for,traders who thinks capital protection is the
most important,and u can make profit of more than 70% per year
----------------------------
instead of selling pairs
u can also buy pair and make profits(i also do this)
------------------------------
buy signal in chart,buy signal in CHOI

trend up
call -9x.xx
put-2x.xx
--------------------------
sell signal in chart,sell signal in CHOI
trend down
put -9x.xx
call-2x.xx
-------------------------------
EXAMPLE
trend up
buy the CE,PE options like this
call-98.35
put-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty
-------------------------------------
trend down
buy the CE,PE options like this
put -98.35
call-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty
-------------------------------------
buying the pair around 100 to 110 is good
How can pair trading protect capital in intraday trades.
please expalin with ref from your example
EXAMPLE
trend up
buy the CE,PE options like this
call-98.35
put-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty

If we buy this pair for 122.9 ( 98.35+24.55 ).

What happens if nifty moves up by 40 points ?
What happens if nifty moves down by 20 points ?

Downside i have taken your stoploss of 20 points and upside target of 40 points ( considering 1:2 risk reward).

Or you can take a pair selling and elaborate with example.


thanks.
 

mvkarthik

Well-Known Member
How can pair trading protect capital in intraday trades.
please expalin with ref from your example
EXAMPLE
trend up
buy the CE,PE options like this
call-98.35
put-24.55
pair price-122.9
target-10to20
stoploss -20 points in nifty

If we buy this pair for 122.9 ( 98.35+24.55 ).

What happens if nifty moves up by 40 points ?
What happens if nifty moves down by 20 points ?

Downside i have taken your stoploss of 20 points and upside target of 40 points ( considering 1:2 risk reward).

Or you can take a pair selling and elaborate with example.


thanks.
How can pair trading protect capital in intraday trades?

capital=40000(for selling 1call and 1put option)
worst case
1trade per day=20trades per month
all trades stoploss hit
for 20points ST in nifty,the MAX loss u r going to get in pair 15,
15*25=375
375*20=7500
loss=7500
18.75%loss in one month
---------------------------------------------
is option buying protect capital in intraday trades?
capital=40000
worst case
1trade per day=20trades per month
all trades stoploss hit
for 20points ST in nifty,the MAX loss u r going to get in option buying say 5
and u r buying option at 100
5*16*25=2000
2000*20=40000
loss=40000
100%loss in one month
-------------------------------------------------
if nifty move up 40 points we will made more then 10 points profits
if nifty hit stop loss 20 points we will made less then 10 points loss
once i made 6points profits in pair i move my ST from 20 points nifty to 2points profit in pair
-------------------------------------------------
for pair buying,the pair around 100 to 110 is good price
for pair selling,the pair around 120 to 130 is good price
--------------------------------------
pair buying
pair price-110
target-10to20
stoploss -20 points in nifty(6points profit made i move
my ST from nify to pair 2points profits)

EX
-----
pair price-110 (enter at 8200 in nifty-ST 8180)
now pair trading at 116
ST move -112
 

mvkarthik

Well-Known Member
SRSARTFtj60min afl
PHP:
usetf = ParamToggle("Use TF", "No|Yes", 1) ;

// Author: Pratap Balakrishnan
// Copyright: All rights reserved. Not to be circulated or shared or posted on websites without the author's written permission.
// email id: [email protected]
//
/*
This creates a band of period-moving average for the given TF 
(TF should be equal to or higher than current chart TF).

*/
alloff = ParamToggle("All off", "No|Yes", 0) ;

//	Rh = ParamField("High", 1) ;
//	Rl = ParamField("Low", 2) ;

tf = Param("TF", 60, 1, 100000, 1);
Periods = Param("Periods", 13, 2, 1000, 1 );
showzone = ParamToggle("Show Zone", "No|Yes", 0) ;
Layer = Param("Layer", -2, -5, 5, 1) ;
shift = Param("Shift", 0, -100, 100, 1) ;
showtitle = ParamToggle("Show Title", "No|Yes", 0) ;
showlabel = ParamToggle("Show Label", "No|Yes", 1) ;
isema = ParamToggle("MA Type", "MA|EMA", 1) ;
MAstyle = ParamStyle("MA Style", styleThick|styleDashed) ;
MAwidthper = Param("MA Width %", 0.01, 0, 10, 1) ;
MAwidth = SelectedValue(C) * MAwidthper /100 ;
Clrup = ParamColor( "Color Up", colorBrown);
Clrdown = ParamColor( "Color Down", colorBrown);
Clrsw = ParamColor( "Color SW", colorBrown);
isexpandLast = ParamToggle("Expand Mode", "First|Last", 0); 

styledisp = 0 ;
if (NOT showtitle)
	styledisp |= styleNoTitle ;

if (NOT showlabel)
	styledisp |= styleNoLabel ;

expandmode = expandFirst ;
if (isexpandLast)
	expandmode = expandLast ;

if (NOT alloff)
{
	Oldintrvl = Interval() ;

	if (usetf)
	{
		tfs = tf *in1Minute ;
		TimeFrameSet(tfs) ;
	}
	else
		tfs = Interval() ;

	if (isema)
		MAhtf = EMA(H, Periods) ;
	else
		MAhtf = MA(H, Periods) ;

	if (isema)
		MAltf = EMA(L, Periods) ;
	else
		MAltf = MA(L, Periods) ;

	str = NumToStr(tf, 1.0)+"Min"+"-P"+NumToStr(Periods, 1.0) ;
	Clr = IIf(MAltf > Ref(MAltf, -1 ), ClrUp, 
			IIf(MAhtf < Ref(MAhtf, -1 ), ClrDown,
			 Clrsw)) ;

	if (usetf)
		TimeFrameRestore() ; //TimeFrameSet(Oldintrvl) ;

	if (usetf)
		MAhtfe = TimeFrameExpand(MAhtf, tfs, expandmode ) ;
	else
		MAhtfe = MAhtf ;

	if (usetf)
		MAltfe = TimeFrameExpand(MAltf, tfs, expandmode ) ;
	else
		MAltfe = MAltf ;

	if (usetf)
		Clre = TimeFrameExpand(Clr, tfs, expandmode ) ;
	else
		Clre = Clr ;

	RefMAhtfe = MAhtfe ;
	RefMAltfe = MAltfe ;
	RefClre = Clre ;

	Plot( RefMAhtfe, str+" High", RefClre, MAstyle|styledisp|styleNoRescale, 0, 0, shift, 1 ); 
	Plot( RefMAltfe, str+" Low", RefClre, MAstyle|styledisp|styleNoRescale, 0, 0, shift, 1 ); 
	if (showzone)
		PlotOHLC(RefMAhtfe, RefMAhtfe, RefMAltfe, RefMAltfe, "", RefClre, styleCloud|styleNoLabel|styledisp|styleNoRescale,Null, Null, shift, Layer) ;
	if (MAwidth > 0)
	{
		PlotOHLC(RefMAhtfe+MAwidth, RefMAhtfe+MAwidth, RefMAhtfe-MAwidth, RefMAhtfe-MAwidth, "", RefClre, styleCloud|styleNoLabel|styledisp|styleNoRescale,Null, Null, shift) ;
		PlotOHLC(RefMAltfe+MAwidth, RefMAltfe+MAwidth, RefMAltfe-MAwidth, RefMAltfe-MAwidth, "", RefClre, styleCloud|styleNoLabel|styledisp|styleNoRescale,Null, Null, shift) ;
	}	
	showext = ParamToggle("Show Extension", "No|Yes", 1)  ;
	showextband = ParamToggle("Show Extension Band", "No|Yes", 1)  ;
	extend = Param("Extend", 20, 0, 100, 1) ;
	showparam = ParamToggle("Show Key Param", "No|Yes", 1) ;

	if (showext)
	{
		x0 = BarCount - (extend+1) ;
		x1 = BarCount -1 ;

		Hdlast = SelectedValue(RefMAhtfe) ;
		Ldlast = SelectedValue(RefMAltfe) ;

		Hplot = LineArray(x0, Hdlast, x1, Hdlast) ;
		Plot(Hplot, "", RefClre, styleLine|styleNoLabel|styledisp|styleNoRescale, 0,0,extend) ;
		LPlot = LineArray(x0, Ldlast, x1, Ldlast) ;
		Plot(LPlot, "", RefClre, styleLine|styleNoLabel|styledisp|styleNoRescale, 0,0,extend) ;

		if (showextband)
			PlotOHLC(HPlot, HPlot, LPlot, LPlot, "", RefClre, styleCloud|styleNoLabel|styledisp|styleNoRescale, 0,0,extend,Layer ) ;

	}

	showparam = ParamToggle("Show Key Param", "No|Yes", 0) ;

	if (showparam)
	{
		y = (SelectedValue(RefMAhtfe)+ SelectedValue(RefMAltfe)) /2 ;
		tfsd = tfs ;
		if (tfsd < Interval())
			tfsd = Interval() ;

		str = "TF = " + NumToStr(tfsd/in1Minute, 1.0) + " P = " + NumToStr(Periods, 1.0) ;
		PlotText(str, BarCount+2, y, colorBlack) ;
	}


}
heikin ashi AFL

PHP:
_SECTION_BEGIN("Heikin-Ashi (Koma");
/*
Heikin-Ashi(Koma-Ashi) with Moving Average Type
 */
SetChartOptions(2, chartWrapTitle);
// Calculate Moving Average
MAPeriod = Param("MA Period", 15, 1, 100);
MAOpen = EMA(Open, MAPeriod);
MAHigh = EMA(High, MAPeriod);
MALow = EMA(Low, MAPeriod);
MAClose = EMA(Close, MAPeriod);
HaClose = (MAOpen + MAHigh + MALow + MAClose) / 4;
HaOpen = AMA(Ref(HaClose,  - 1), 0.5);
// for graph collapse
for (i = 0; i <= MAPeriod; i++)
  HaClose[i] = Null;
/*
// same 
// HaOpen = (Ref(HaOpen, -1) + Ref(HaClose, -1)) / 2;
HaOpen[ 0 ] = HaClose[ 0 ]; 
for(i = 1; i < BarCount; i++) { 
HaOpen[i] = (HaOpen[i - 1] + HaClose[i - 1]) / 2;
} 
 */
HaHigh = Max(MAHigh, Max(HaClose, HaOpen));
HaLow = Min(MALow, Min(HaClose, HaOpen));
// outs comments
"BarIndex = " + BarIndex();
"Open = " + Open;
"High = " + High;
"Low = " + Low;
"Close = " + Close;
"HaOpen = " + HaOpen;
"HaHigh = " + HaHigh;
"HaLow = " + HaLow;
"HaClose = " + HaClose;
// Plot graphs
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} HaOpen %g, HaHigh %g, HaLow %g, HaClose %g (%.1f%%) {{VALUES}}", HaOpen, HaHigh, HaLow, HaClose, SelectedValue(ROC(HaClose, 1))));
PlotOHLC(HaOpen, HaHigh, HaLow, HaClose, _DEFAULT_NAME(), ParamColor("Color", colorBlack), styleCandle);
/* **********************************
Code to automatically identify pivots
 ********************************** */
// -- what will be our lookback range for the hh and ll?
farback = Param("How Far back to go", 100, 50, 5000, 10);
nBars = Param("Number of bars", 12, 5, 40);
// -- Title.
Title = Name() + " (" + StrLeft(FullName(), 15) + ") O: " + Open + ", H: " + High + ", L: " + Low + ", C: " + Close;
// -- Plot basic candle chart
PlotOHLC(Open, High, Low, Close, "BIdx = " + BarIndex() + "\n" + "O = " + O + "\n" + "H = " + H + "\n" + "L = " + L + "\n" + "C ", colorYellow, styleLine | styleThick);
GraphXSpace = 7;
// -- Create 0-initialized arrays the size of barcount
aHPivs = H - H;
aLPivs = L - L;
// -- More for future use, not necessary for basic plotting
aHPivHighs = H - H;
aLPivLows = L - L;
aHPivIdxs = H - H;
aLPivIdxs = L - L;
nHPivs = 0;
nLPivs = 0;
lastHPIdx = 0;
lastLPIdx = 0;
lastHPH = 0;
lastLPL = 0;
curPivBarIdx = 0;
// -- looking back from the current bar, how many bars 
// back were the hhv and llv values of the previous 
// n bars, etc.?
aHHVBars = HHVBars(H, nBars);
aLLVBars = LLVBars(L, nBars);
aHHV = HHV(H, nBars);
aLLV = LLV(L, nBars);
// -- Would like to set this up so pivots are calculated back from
// last visible bar to make it easy to "go back" and see the pivots
// this code would find. However, the first instance of 
// _Trace output will show a value of 0
aVisBars = Status("barvisible");
nLastVisBar = LastValue(Highest(IIf(aVisBars, BarIndex(), 0)));
_TRACE("Last visible bar: " + nLastVisBar);
// -- Initialize value of curTrend
curBar = (BarCount - 1);
curTrend = "";
if (aLLVBars[curBar] < 
aHHVBars[curBar])
{
  curTrend = "D";
}
else
{
  curTrend = "U";
}
// -- Loop through bars. Search for 
// entirely array-based approach
// in future version
for (i = 0; i < farback; i++)
{
  curBar = (BarCount - 1) - i;
  // -- Have we identified a pivot? If trend is down...
  if (aLLVBars[curBar] < aHHVBars[curBar])
  {
    // ... and had been up, this is a trend change
    if (curTrend == "U")
    {
      curTrend = "D";
      // -- Capture pivot information
      curPivBarIdx = curBar - aLLVBars[curBar];
      aLPivs[curPivBarIdx] = 1;
      aLPivLows[nLPivs] = L[curPivBarIdx];
      aLPivIdxs[nLPivs] = curPivBarIdx;
      nLPivs++;
    }
    // -- or current trend is up
  }
  else
  {
    if (curTrend == "D")
    {
      curTrend = "U";
      curPivBarIdx = curBar - aHHVBars[curBar];
      aHPivs[curPivBarIdx] = 1;
      aHPivHighs[nHPivs] = H[curPivBarIdx];
      aHPivIdxs[nHPivs] = curPivBarIdx;
      nHPivs++;
    }
    // -- If curTrend is up...else...
  }
  // -- loop through bars
}
// -- Basic attempt to add a pivot this logic may have missed
// -- OK, now I want to look at last two pivots. If the most 
// recent low pivot is after the last high, I could
// still have a high pivot that I didn't catch
// -- Start at last bar
curBar = (BarCount - 1);
candIdx = 0;
candPrc = 0;
lastLPIdx = aLPivIdxs[0];
lastLPL = aLPivLows[0];
lastHPIdx = aHPivIdxs[0];
lastHPH = aHPivHighs[0];
if (lastLPIdx > lastHPIdx)
{
  // -- Bar and price info for candidate pivot
  candIdx = curBar - aHHVBars[curBar];
  candPrc = aHHV[curBar];
  if (
  lastHPH < candPrc AND 
  candIdx > lastLPIdx AND 
  candIdx < curBar)
  {
    // -- OK, we'll add this as a pivot...
    aHPivs[candIdx] = 1;
    // ...and then rearrange elements in the 
    // pivot information arrays
    for (j = 0; j < nHPivs; j++)
    {
      aHPivHighs[nHPivs - j] = aHPivHighs[nHPivs - 
      (j + 1)];
      aHPivIdxs[nHPivs - j] = aHPivIdxs[nHPivs - (j + 1)];
    }
    aHPivHighs[0] = candPrc;
    aHPivIdxs[0] = candIdx;
    nHPivs++;
  }
}

else
{
  // -- Bar and price info for candidate pivot
  candIdx = curBar - aLLVBars[curBar];
  candPrc = aLLV[curBar];
  if (
  lastLPL > candPrc AND 
  candIdx > lastHPIdx AND 
  candIdx < curBar)
  {
    // -- OK, we'll add this as a pivot...
    aLPivs[candIdx] = 1;
    // ...and then rearrange elements in the 
    // pivot information arrays
    for (j = 0; j < nLPivs; j++)
    {
      aLPivLows[nLPivs - j] = aLPivLows[nLPivs - (j + 1)];
      aLPivIdxs[nLPivs - j] = aLPivIdxs[nLPivs - (j + 1)];
    }
    aLPivLows[0] = candPrc;
    aLPivIdxs[0] = candIdx;
    nLPivs++;
  }
}
// -- Dump inventory of high pivots for debugging
/*
for (k=0; k<nHPivs; k++) {
_TRACE("High pivot no. " + k
+ " at barindex: " + aHPivIdxs[k] + ", " 
+ WriteVal(ValueWhen(BarIndex()==aHPivIdxs[k], 
DateTime(), 1), formatDateTime)
+ ", " + aHPivHighs[k]);
}
 */
// -- OK, let's plot the pivots using arrows
PlotShapes(IIf(aHPivs == 1, shapeDownArrow, shapeNone), colorRed, 0, High, Offset =  - 15);
PlotShapes(IIf(aLPivs == 1, shapeUpArrow, shapeNone), colorBrightGreen, 0, Low, Offset =  - 15);
_SECTION_END();
 

bapu4

Well-Known Member
@somatung,
Sir,
You must be observing the TATASTEEL ce300 jun,after languishing at 22 it is now quoting at 13 a whopping 30 Rs profit but I am new to this and it is frightening to sell calls that too deep ITM.Any ways I will find other opportunities and come to you !!
High regards
 

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