Nifty Options Vertical Spread Trading

[TracerBullet]

Also got 8 points by selling 5000PE :clapping:

So total risk reduced to 21 points now

Hello , can you please explain this.
5000PE is arnd 75. Did you short and buy back to gain 8 points ?
thanks

 

[ananths]

Hello , can you please explain this.
5000PE is arnd 75. Did you short and buy back to gain 8 points ?
thanks

There was small pull back from 5320 to 5350. I used that...but this kind of market its not advisable.....i booked it quickly. If you are a beginner dont try that.

 

[TracerBullet]

There was small pull back from 5320 to 5350. I used that...but this kind of market its not advisable.....i booked it quickly. If you are a beginner dont try that.

I am not trading , just wanted to understand what you did thanks

 

[ananths]

Ok. No problem...even i prefer to add extra leg to spread when its going on loss...but if there is any opportunity i will use it. The trades mentioned here is just for tracking and learning..its my personal trades but i dont recommend to anyone.

 

[ananths]

Hi Dan,

I'm not sure you checked my PM or not..Meanwhile I went through the video on non-linear charting setup which you posted(#53) earlier in this thread and after watching it again I realized that its all about identifying the overall trend of the market which is required for spread trading and not too much TA.

Thanks once again for this video.
https://optionvue.webex.com/optionvu...D35BBD0D2CAFE5

I have decided to follow the trend by using values mentioned in the video..
EMA's 13, 21 & 34
MACD 5 & 34
I will use the 3 bar and 5 bar method to enter the trade.

Just wanted to ask you about the exit...should we wait for all the moving averages to cross over? and by that we can say the trend is changed?

Thanks once again.

 

[ananths]

Bought sept 5300PE/5200PE @ 113/84
Total cost = 29 points

Squared off @ 274/223

22 points profit. :clapping:

 

[ananths]

I will not trade now because tomorrow its expiry and market will be choppy after such massive fall.
Will wait and watch.
No worries if we miss one or two chances.

 

[ananths]

Traded a bearish Put spread today looking at the longer term trend.

Buy 5200PE / 5100PE @ 127 / 98

Total cost = 29 points.

Saw some pull back today and sold 5000PE at 69 and covered @ 62...profit 7 points.

Net cost of the spread = 22 points. :thumb:

 

[ananths]

NSE introduced 50 points strike price for NIFTY Index options..but no interest on it so far ask and bid is 10 - 15 points

 

[ananths]

To reduce the spread risk, today morning sold 5000PE @ 48.5 but saw market is unable to cross res at 5470, covered it @ 46

Net risk of the spread 20 points