Option trading strategies that i hope will work.

[detrich]

I just made a mistake I have actually taken a position in Ashok Leyland CA-27.50@ 1.20 which I have mentioned as hypothetical. Sorry for that.

 

[detrich]

I am going to take a break here. Seems like I am currently on the wrong side of the tide. So there is nothing much I can do I did not buy CE-3900 because I am just worried that the market will in near future tumble down. So I will just take a nap here. So when things go my way or I find something intresting I will wake up. Do give me your feedbacks and yes your strategies. I would love to hear from you people.

 

[praveen taneja]

I am going to take a break here. Seems like I am currently on the wrong side of the tide. So there is nothing much I can do I did not buy CE-3900 because I am just worried that the market will in near future tumble down. So I will just take a nap here. So when things go my way or I find something intresting I will wake up. Do give me your feedbacks and yes your strategies. I would love to hear from you people.

i bought RIL call 2100 at 26.55 n sell at 39.90 and bought 1800 PUT at 41.05 n sell at 51.50 still finding a strategy will tell u when i find still trading the strategy name TUKKA

 

[detrich]

i bought RIL call 2100 at 26.55 n sell at 39.90 and bought 1800 PUT at 41.05 n sell at 51.50 still finding a strategy will tell u when i find still trading the strategy name TUKKA

Dear Pravinji,

good evening, first of all I am bit confused about what you are saying here. Pravinji are you finding my strategies tukka?? Or it is the strategy that you work with??? Sir please elaborate on that. Since you are a very senior member than me. I would like to know your views. Thank you for giving your time and going through my posts.

 

[coolboy007]

Dear Pravinji,

good evening, first of all I am bit confused about what you are saying here. Pravinji are you finding my strategies tukka?? Or it is the strategy that you work with??? Sir please elaborate on that. Since you are a very senior member than me. I would like to know your views. Thank you for giving your time and going through my posts.

Praveenji must be saying his strategy as tukka.

Today also after a 100 point move in nifty my straddle is at a loss of 1700 , got CE at 182 and PE 198 , whats wrong why am i incurring a loss. How many points wud this BHUKHA straddle take to get me in profit.

 

[pasha]

Your straddle needs an 8%+ move in either direction to become profitabe.

 

[detrich]

Praveenji must be saying his strategy as tukka.

Today also after a 100 point move in nifty my straddle is at a loss of 1700 , got CE at 182 and PE 198 , whats wrong why am i incurring a loss. How many points wud this BHUKHA straddle take to get me in profit.

Dear coolboy007,

Good evening and I am really sorry to hear about your loses. Straddles are used when you are unsure about the direction of the market but you are certain that whichever way it will go deeper wither way. Like me you took the position near the close of market on 26th. At that time on Friday it really looked like market were going to be volatile from Monday onwards(which actually was supported by the slide of 3%+). So came Tuesday and as I mentioned about the short covering in previous post the market went up. On Wensday i.e. Today I really have fundamentally no clue whatsoever why the market is up. Technically I think that since the trend was running long(I am attaching two files for reference) i.e. it went strayed away from the market price of the underlying this sort of thing happens during that time. Now what has happened here is that market from the close of 26th i.e.3985 to current 3950 has not gone just anywhere. What my advice would be is to offload the CE-3900 at the higher side of current cycle i.e. 4000/4010 and continue to hold the PE-3900. To offset for the loss in the meantime take a position in some PE-OTM when markets open on Friday and I think that at 4000 level the minimum price which you will get if nifty hits 4000 again is CE-3900@ Rs.210 and PE-140. Which I know will be little hard to swallow but I think that would be the first step towards getting the breakeven and Then the PE-3900 should be exited when you reach the lower end of the current wave i.e. 3700 and below. Under no circumstances sit on this till the end of the month or you will get burned as pasha had mentioned that you need atleast a movement of 8% either side to have some meanigful return out of this.

 

[detrich]

Your straddle needs an 8%+ move in either direction to become profitabe.

Dear Pasha,

Thank you for giving your view.

 

[detrich]

sorry cool boy 007 I was little slow to reply because I am sitting here with my fingers croseed for Friday. GOOD LUCK

 

[coolboy007]

sorry cool boy 007 I was little slow to reply because I am sitting here with my fingers croseed for Friday. GOOD LUCK

All rite thanks for the analysis of ma positions. And DAMN!!! Why did i take this straddle , i thought mkts will swing but i was wrong , its not taking me anywhere. Monday i will take fresh position and try to close this straddle on friday itself it the loss is reduced to arnd 1k.

My old strategy was better than this of taking Ce and Pe 200 points away from nifty spot. I earned a lot using that strategy and it suits me i think. My luck is with me for that. This straddle would kill me double side with time decay. Wud take fresh long or short positions on monday now. Wud try to sq off this CE on friday and u say to hold PE will think of that but this CE is going out for sure.

Your fingers crossd have u taken any heavy positions long or short on mkts???

Rajat