Nifty Option's trading.... Earn regardless of where the market goes !!

[arnav_rulz]

Selling Nifty Call-4100 which will cost me-28700+280(brokerages and taxes etc)

At what price did you see the call ? And when you say selling 4100 costs you 30k, do mean brokerage wise or what ?

 

[detrich]

by this I meant about squaring off the positions. Brokerages are well with in their rights to demand an extra margin because when trades go wrong ,and they often do than not,to square off their positions. The brokerages vary. But by thumb rule

0.5-04- Cash Positions
e.g. buying 100 Essar oil shares @ 171.05 in cash would cost
17105+85.25=17190.25
0.1- Intra-Day
17105+17.10=17122.10

Options it is flat Rs.100/contract(Inclusive of taxes).
so even if i buy some ridiculously otm contract i would pay 100. Same goes with ITM.

Futures-0.15(Inclusive of taxes)
Nifty Futures-3995 29 OCT
it would cost me
3995*50=
199750+300=200050
My A/C currently with ICICIDirect, Previously it was with Sharekhan and India Infoline.
I know there are many brokerages offering far less than this. But I found that for online trading purposes one should always have demat a/c linked with savings a/c for convinience of transactions.

 

[detrich]

Man im srry i really didnt get you .... Could you be a lil more specific .. like maybe give an example about what you mean ..

As per the last line about my pricing method of options ... I gave my strategy during the live market hours ....

I do not chose any nifty levels .... I try and make different strategies for different ppl who have different levels of nifty in there mind as per their analysis.

This strategy is basically a hedge strategy where you try and earn every month in an uncertain yet ranged bound markets ...(ie within a span of 1000-1200 nifty points)

by this I meant about squaring off the positions. Brokerages are well with in their rights to demand an extra margin because when trades go wrong ,and they often do than not,to square off their positions. The brokerages vary. But by thumb rule

0.5-04- Cash Positions
e.g. buying 100 Essar oil shares @ 171.05 in cash would cost
17105+85.25=17190.25
0.1- Intra-Day
17105+17.10=17122.10

Options it is flat Rs.100/contract(Inclusive of taxes).
so even if i buy some ridiculously otm contract i would pay 100. Same goes with ITM.

Futures-0.15(Inclusive of taxes)
Nifty Futures-3995 29 OCT
it would cost me
3995*50=
199750+300=200050
My A/C currently with ICICIDirect, Previously it was with Sharekhan and India Infoline.
I know there are many brokerages offering far less than this. But I found that for online trading purposes one should always have demat a/c linked with savings a/c for convinience of transactions.

 

[detrich]

At what price did you see the call ? And when you say selling 4100 costs you 30k, do mean brokerage wise or what ?

dear arnav,

that's the writing cost for a naked call option.

 

[detrich]

Dude you sold a call @ 4100 ? and brought a put @ 4000 >?

aah wat if market end up 4500 :S ? you are double bearish !! Not a strategy to follow in this thread ... (earn regardless of where nifty goes !!)


Also This is not what i was asking about .... I Wanted to ask --

1)On What issue do you disagree with me ? (as per your 1st post 1st line)


2)What did you mean by this? (in your 1st post)

Dear Arnav,

From what i see from my analysis there is little or no chance of market going beyond 4200 and next strong support comes around 3800 and with the thin volumes and bearish sentiments there is no way it is going to go up and secondarily i have written a call option of 4100 incase u did not get my point. I did not meant that i purchased a call option of 4100 and then sell it.

 

[arnav_rulz]

by this I meant about squaring off the positions. Brokerages are well with in their rights to demand an extra margin because when trades go wrong ,and they often do than not,to square off their positions. The brokerages vary. But by thumb rule

I never said they were doing something out of the rules book, What i meant was that it is not accordance with nse Minimum requirement.

If Brokers want, they can charge you 100% margin no rule regarding
that, but the minimum is around 10-14% which is followed by many brokers too ...

0.5-04- Cash Positions
e.g. buying 100 Essar oil shares @ 171.05 in cash would cost
17105+85.25=17190.25
0.1- Intra-Day
17105+17.10=17122.10

Options it is flat Rs.100/contract(Inclusive of taxes).
so even if i buy some ridiculously otm contract i would pay 100. Same goes with ITM.

Futures-0.15(Inclusive of taxes)
Nifty Futures-3995 29 OCT
it would cost me
3995*50=
199750+300=200050
My A/C currently with ICICIDirect, Previously it was with Sharekhan and India Infoline.
I know there are many brokerages offering far less than this. But I found that for online trading purposes one should always have demat a/c linked with savings a/c for convinience of transactions.

Seriously dude ? If buying 1 lot of Nifty FUTURE costs you 2 lakh ? whats the use of trading in Stock futures, why not simply buy in cash ? (except in nifty caz thrz no cash purchase here..)

300 brokerage in 1 lot nifty ? ie 0.15% in nifty ? that is 6 points ? aah dude thats way too much... Most of ppl must be paying around 0.02% brokerage ...

Those other brokerages who offer far less than this also have online trading and their also your demat A/c can be linked wit your saving account ..



*P.S - man thread named should be changed from nifty options strategy to nifty margin/brokerage discussion thread

 

[detrich]

I never said they were doing something out of the rules book, What i meant was that it is not accordance with nse Minimum requirement.

If Brokers want, they can charge you 100% margin no rule regarding
that, but the minimum is around 10-14% which is followed by many brokers too ...



Seriously dude ? If buying 1 lot of Nifty FUTURE costs you 2 lakh ? whats the use of trading in Stock futures, why not simply buy in cash ? (except in nifty caz thrz no cash purchase here..)

300 brokerage in 1 lot nifty ? ie 0.15% in nifty ? that is 6 points ? aah dude thats way too much... Most of ppl must be paying around 0.02% brokerage ...

Those other brokerages who offer far less than this also have online trading and their also your demat A/c can be linked wit your saving account ..



*P.S - man thread named should be changed from nifty options strategy to nifty margin/brokerage discussion thread

Dear Arnav,

wether you like it or not that is the rule and when u talk about 6 points when you compare it to the volatility in option contracts to cash one's u will find there way too more in options. In option on any given day you could make 30-40% of that and as for margins if you have to pay 100% then it would stop being margin,talk sense man, it would rather become payment. And as for changing the name of the post plz do it soon. Because if you are going to talk about trading in options. They are the first thing that has to be factored in,and yes, stop looking just at just nifty contracts, there individual contracts like IFCI,IDFC,IDBI,RCOM,ashok leyland etc, where this brokerages make sense given the amount of equity involved.

 

[detrich]

sorry man i gorgot to divide for futures

49937.50+300=50237

 

[arnav_rulz]

Dear Arnav,
From what i see from my analysis there is little or no chance of market going beyond 4200 and next strong support comes around 3800 and with the thin volumes and bearish sentiments there is no way it is going to go up and secondarily i have written a call option of 4100 incase u did not get my point. I did not meant that i purchased a call option of 4100 and then sell it.

well off topic, my instinct says market goes atleast 4400 this month(honestly thr is something in me which says 4600 maybe even crossed )

Anyways thats not what we are here to discuss...

I never thought you purchased a call and then sold it :S,
when i said :- you Sold 4100, i also meant that have written it..

Thats why is said that you are double bearish(opposite of hedged! which is the purpose of the thread) on the market as 1)you Wrote a call, 2)you brought a Put.

In this thread I wanted to take a different approach to the market and try and earn where ever is went (cause believe it or not, its still not certain that market CANNOT rise from here..)

If this strategy was followed for the past 4 months, you could have easily made good money without taking a positional trade...

If some1 is very bearish on market, yet uncertain a different strategy could have been made BUT all the ppl that i asked said there range for market was between 3800-5000 and thus a strategy suiting there range was made...

 

[detrich]

well off topic, my instinct says market goes atleast 4400 this month(honestly thr is something in me which says 4600 maybe even crossed )

Anyways thats not what we are here to discuss...

I never thought you purchased a call and then sold it :S,
when i said :- you Sold 4100, i also meant that have written it..

Thats why is said that you are double bearish(opposite of hedged! which is the purpose of the thread) on the market as 1)you Wrote a call, 2)you brought a Put.

In this thread I wanted to take a different approach to the market and try and earn where ever is went (cause believe it or not, its still not certain that market CANNOT rise from here..)

If this strategy was followed for the past 4 months, you could have easily made good money without taking a positional trade...

If some1 is very bearish on market, yet uncertain a different strategy could have been made BUT all the ppl that i asked said there range for market was between 3800-5000 and thus a strategy suiting there range was made...

A big Cheers to that hopefully we will not see any bloodbath(though personaly i would not mind). But still 3995-5000 is a long journey for nifty on the kind of volume generated.
But my aproach is very different to your's. I hate trading markets. Currently i see this as a bearish market. As for collars they are meant to be in place during trading hours. At that time it makes sense to have them. So do not worry I would be posting here even if i go wrong. You would be first to know. Plz give me names of brokerages charging less than what i have mentioned. I would be glad to contact them. Kepp on the good work buddy. You are doing great job.