Option Logics

[santhosh2010]

Dear toughard,
kindly share your thought about this type of strategy....

BOTH SIDE ~ SKIP STRIKE BUTTERFLY (Aug contract)

 

[toughard]

@ santhosh2010

Here payoff almost look like IRON CONDOR... and I personally avoid trading 50 strikes due to slippage issues while closing the structure!

 

[deepeme]

As keeping the base- MAX OI @ 7000PE & 8000CE
The Bearish Structure is

Can i have a copy of the excel sheet of option magic as shown by you

Thank you

 

[toughard]

Guys don't forget to post your structures performance and your followups with them by EOD.. it may be important for some one who is interested at them!!

Thanks all...

 

[santhosh2010]

 

[toughard]

Okay this is going to be little long...

Bearish Structure @ +2150
Butterfly @ +350

-OI MAX PAIN DROPPED TO 7600 from 7700 strike!
-Price validated, tested and closed below S1 7580 NS
-Charts simplified for cleat view
-PE HOI continued at 7500PE will study more on this below

Two thing about above pic...
-as we anticipated earlier channel bottom acted as clear RES
-Price straight away landed at S1 7580 NS

Some interesting observations on this chart considering HL of Major Swing Points ie., 7840 & 7420 NS....
- golden ratio 61.8% is created a confluence with S1 7580 NS today
- 80% is roughly around 7500 where as 7500 is PE HOI too, which may act as strong Support
- well we remember how 7500 level as played out since few months

Final Conclusion...

Next week will be very important to see how weekly price trend asserts!!
-If price respects the above said confluence and close higher then its good to initiate a long directional structure... If not we will DO IT when price near 7500...
-If Breaks 7500 and test S2 7440 it we will rethink based on OPTION TABLE at that time

So Tuesdays price action and 7500 is key now, Basically the present set of scenario is quite favorable for Trend Reversals given the fact that underlying trend is weak... lets price only validate it!!

 

[gmt900]

Initiated Sept Butterfly spread as follows:

Sell 7700CE 154
Sell 7700PE 149.5

Buy 7800CE 108.35
Buy 7600PE 107.4

Max Profit 4387.5
Max loss 612.5

margin blocked 50,000.
Will look to exit with a profit of 1000+

Current profit 27.5

 

[santhosh2010]

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[santhosh2010]

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[Somatung]

@Santhosh2010

Why dont you just tell that all what you posted now in post 78 and 79 is from the book: The Bible of Option Strategies from Guy Cohen. Every body can find a free PDF about it in the net and will have hounderts of more information about any topic and not only what you past copy from your PDF you have into this thread. Even in other threads you do past copy about the same topic: Option Strategies.http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-559.html#post991896 Any problem with you or why do you post all over the same topic? Do you need attention like your friend TH does?