Option trading strategies that i hope will work.

[detrich]

Back from break and with such a strong resumption of trade. I think I will just keep my CE-3900 I am feeling very greedy.

 

[detrich]

I would really apreciate if anybody wants to share their strategies. I would just love to hear from you people.
and for trades-
CE-3900-183
PE-4000-273. So still doing good on both sides.CHEERS!!!!!!!!!!!!!!!!!!!!!!!!11

 

[detrich]

I would really apreciate if anybody wants to share their strategies. I would just love to hear from you people.
and for trades-
CE-3900-183
PE-4000-215. So still doing good on both sides.CHEERS!!!!!!!!!!!!!!!!!!!!!!! Sorry got overexcited and quoted PE-4100:d

 

[praveen taneja]

sir do u hav any reason to buy something or decide by tossing a coin ,it would b more benefit if u tell the way of chosing an option.one more thing as i know 80% of people dont allow by there broker to sell a call or put due to lack of funds or anything do u hav any single strategy.if not join ashish da he is marvelous in this option of buying n selling call put thnx for giving ur trade

 

[detrich]

sir do u hav any reason to buy something or decide by tossing a coin ,it would b more benefit if u tell the way of chosing an option.one more thing as i know 80% of people dont allow by there broker to sell a call or put due to lack of funds or anything do u hav any single strategy.if not join ashish da he is marvelous in this option of buying n selling call put thnx for giving ur trade

Dear Praveen,

thank you for the suggestion . It was nice to know that atleast somebody is reading what i am writing. The method I am following is called as Technical Analysis. I would be glad to share with you. Basically I do technical analysis of the underlying asset then take a fundamental view(i.e. if intresting and big like current bailout). In technical analysis i look out for obvious formations. What i found was that Nifty has been from Jan in an ovious sharp downtrend(If you look at the daily chart from the May onwards you will find that nifty is forming lower and lower highs and volume is steadily declining with a strong support forming at 3800-3790(It was tested four times in last 2 months . After joining the subsequet tops from May you will find that an decending triangle(The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern) is formed when connected to the support line at 3800 level. After applying the MACD oscillator to the chart you will find that a sell signal was generated on 11th September and after that on 18th September the market touched the low but got support again at 3800-3790 mark. After that a small upward move for four days started that topped out at 4303 on 22nd September. From 23rd the market went into the slide again till yesterdays 3%+ fall. Which saw the strong support of 3800-3790 getting breached and though it came back sharply. The rise we saw today was nothing but unwinding of short positions. That could be confirmed from the fact that the premium on nifty Oct futures is reduced to just 4 points from yesterday's 9 points. Currently if you check the chart MACD combined with SAR and MA you will find that the chart is very bearish looking and combined with descending triangle formation just does not bode too well. As for present time why I am so confident is because even fundamentally things are not so rosy with 17.3 P/E is not something that is sustainable in a recession(yes recession it is no more slowdown) heading market. So i guess i have this bearish view and according to me you trade in options to maximize your leverage on the underlying instrument in which you are intrested rather than trading just for sake of trading.

After that i use a stock option calculator that calculates delta,theta, implied volatality and vega. After comapring the past values with present one's(Ofcourse with adjustments in value:d)for e.g. taking last series of september on Aug 26 Nifty was 4337.50 the volatality was very low and the rollover was weak so in that situation I would have opted rather for something that was deeply ITM because that would be my safeguard against the time decay. So if i was bearins i would rather have preferred something in the region of PE 4500-4600 and and if bullish then CE-4200-4300.If it was anything like current situation I would have picked PE-4300-4400 in beraish condition and CE-4400-4500. This is my method of picking the options in that underlying. I hope this satisfies your querry. I know there are million methods more correct than mine. But this one suits me good and if nothing I hope better than just tossing the coin:d. Yes I want to upload my charts I am just not able to do it here. So please can anyone suggest me how to do it????

 

[detrich]

sorry for not posting quicker because of the power failure here at my pladce at the ned of the day I was not able to close my PE-4100 @218.10(i know i know i should not have been such a greedy pig). and a position at CE-3900 @ 192.20.

 

[detrich]

From here I think I am still sticking to my earlier prediction i.e. markets are heading towards the 3500 mark. What we saw today is just an unwinding of short positions which always take place after a long slide. So there is no major shift in my view. Hopefully tommorow I just hope i would be in green. Because there are chances of a gap up move on nifty after such a close like todays.

 

[coolboy007]

From here I think I am still sticking to my earlier prediction i.e. markets are heading towards the 3500 mark. What we saw today is just an unwinding of short positions which always take place after a long slide. So there is no major shift in my view. Hopefully tommorow I just hope i would be in green. Because there are chances of a gap up move on nifty after such a close like todays.

Nice thread buddy , u seem to be a man with vast technical knowledge.
And never be disheartened that nobody read your post , as now u gave all ur reasons of your positions many would come to this page , atleast me and praveenji wud come 4 sure traderji has a lot of members and each post is read.

I am on a 3900 straddle , mkts look very uncertain.

 

[detrich]

Nice thread buddy , u seem to be a man with vast technical knowledge.
And never be disheartened that nobody read your post , as now u gave all ur reasons of your positions many would come to this page , atleast me and praveenji wud come 4 sure traderji has a lot of members and each post is read.

I am on a 3900 straddle , mkts look very uncertain.

Dear cool boy007,

Thanx a lot cool boy it was really nice to hear that. I am glad you found this thread useful I promise I will try to make it even better if you promise to read it:d. Please do post your views.

 

[praveen taneja]

Nice thread buddy , u seem to be a man with vast technical knowledge.
And never be disheartened that nobody read your post , as now u gave all ur reasons of your positions many would come to this page , atleast me and praveenji wud come 4 sure traderji has a lot of members and each post is read.

I am on a 3900 straddle , mkts look very uncertain.

Bro in the mkt see wat is trend n trade accordingly as it is now clear that oct will b in range as all saying between 3800-4200 .I m doing just buy at sppt the res n at res the sppt price call n put n when that sppt or resistence broken think that a stop loss n book loss it is working with me till now.read regularly sunils level n satyajit da,s line baba where are standing.But always remember till march always try to exit on all bounce back n take put n vice versa .thats my view u n others can put theres ,but for god sake dont write selling call n put bcoz that is teasing for the all new bies n persons who dont hav much cash better give ur view on our trade.I m now on two calls of 4500 tgt 35 tomm on gap up if n if any.tomm strategy is mine buying RIL 2100 call n 1800 put at 40 so wherever RIL move 100Rs it will give me profit + one call or put for freeelse is gods wish