Option trading strategies that i hope will work.

[AW10]

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.

One simple strategy to make money..
1) Take the signals from a loosing strategy
2) do exactly opposit of that..

so if you are loosing mony by buying straddle, then what about selling straddle (ofcourse you need to manage the risk of selling option)

Happy Trading.

 

[TVENKAT]

detrich
I am very glad and please explain with graph
thanks

 

[praveen taneja]

One simple strategy to make money..
1) Take the signals from a loosing strategy
2) do exactly opposit of that..

so if you are loosing mony by buying straddle, then what about selling straddle (ofcourse you need to manage the risk of selling option)

Happy Trading.

pls pls o pls dont teach the wrong way to a lil sweet guy that is really dangerous if u dont hav any real strategy.how can u say he will always think wrong,if he think right then too he will losse????????????????

 

[praveen taneja]

All rite i book profit in ma CE and hold PE but what if nifty jumps 200 points next week. No one cn predict mkts so easily. yesterday every1 was saying down circuit etc but we closed in green against all expectations. In taking naked shorts risk factor increases manifolds. Lets see todays big news is BAILOUT in senate. Dont knw what might happen.
i think i am better playing OTM options i am good at that 4 sure.

yes u r right thats why i request all to read nifty fut trading people view they are trading with charts n software that tell where mkt heading n one more thing why u people think bailout is good n that will close further more bankruptions it is only for those who are finish others who are in line will give u profit from put ,but choice is urs just play with trend my request

 

[coolboy007]

yes u r right thats why i request all to read nifty fut trading people view they are trading with charts n software that tell where mkt heading n one more thing why u people think bailout is good n that will close further more bankruptions it is only for those who are finish others who are in line will give u profit from put ,but choice is urs just play with trend my request

Yes sir , thanks or the S/W options oracle its gr88. I hav calculated that i cn benefit only if nifty touches 4100. Lets see i would sell CE 2moro and hold PE and Sq it off after mkts fall. Thats right i think.

 

[praveen taneja]

Yes sir , thanks or the S/W options oracle its gr88. I hav calculated that i cn benefit only if nifty touches 4100. Lets see i would sell CE 2moro and hold PE and Sq it off after mkts fall. Thats right i think.

No need of thank sir I too got that from siva sir here are really very nice people in traderji who want to help people learn n earn god bless u n them all

 

[detrich]

The reason I felt Nifty going down 3500 could easily be seen in the charts (I have attached them again in case somebody does not know which chart I am talking about) which are as follows:-

1) NSE chart 011008:- When I started analyzing Nifty for the month of October from 24th September. At that time I was little bullish or rather moderately neutral. What I thought was that there was a strong support at the 4100-4110. The MACD looked poised for a crossover. Moving averages were neutral and in sync with the prices. So I had thought that markets will be neutral henceforth, and of course the bailout also aided that sentiment, but then on 25th September an expected slide happened of 51 points happened as I nearly every western were either neutral or in red and so were the Asian indices . Same with the 26th September fall of 125 points Though all 25th September western indices(Ftse+102 and Dow +197, I just keep tap on both of them) Asian markets were down on 26th September(Nikkei -113, HIS -200 something ). Till then everything was just fine. What was not expected was the slide on 29th September of 135 points on Nifty and even worrying sign was the breach of 3800 support which had not been breached two times before that. Then the in the first session on 30th September the nifty again breached the 3800 mark. This time it went even deeper to 3715( Remember to consider anything as breakthrough it should be in 5% on intraday basis). But then again it bounced back and on 1st October Nifty held 3800 mark very well. What is interesting to see is that last time the same formation of prices took place Twice before on the 18th September( Circle C) and on 16th July( Circle A). After both the circle you will notice that the index bounced back from that level to at least 10% above them. But as I had said earlier the difference is in the phases of indicators when the phases are compared. In Phase A that started on 11th July the nifty was in a positive phase with respect to MACD, the ,moving averages were neutral(i.e. no crossover insight and completely in sync with the price). Though the SAR was in Sell mode but it can be discounted on the fact that MACD is in Buy mode and moving average in neutral mode. Then after a fall that technically can just be classified as a random wave. The fall was brief but very sharp the index fell from highs of 4200 to sub 4000 levels in space of three days. Then finally on 16th July due to some fundamental reasons(I will call them fundamental because there was gap between the previous close and high) the index went down to 3800/3790 levels and just managed somehow to surface above 3800 and close at 3816. Now what happened as you can clearly see from the chart that the Moving Averages went out of sync(in other words long in trend) with respect to the prices. Same with SAR they also went out of sync with the prices. When this happens the situation is called as oversold. So a bounce back was surely on cards i.e. an upward move. But in this case it was just more than bounce back it was end of the random wave and a bottom was discovered at that time. Now fast forward to phase C. This phase started on 08th September after a brief trading phase with bearish overtones from 6th August to 7th September(In other words in trading range or rectangle pattern between the 4500 to 4200). After 10th September a fundamental shift started and the nifty went into a freefall till 15th September. In a week the index fell from 4500 to again the sub-4000 mark. Then on the 16th the nifty began with a sharp correction in first phase after a tepid opening (It is indicator that the fall was not fundamental but continuation of the trend). What happened here was first the MACD generated oversold signals so did SAR and Moving Averages too. So at least for that day the bottom was found at 3919 and the nifty was stable for at least next day there were no major corrections. Then on the 18th September After a mild opening the nifty went into something that was akin to madness and went down to 3799 level and bounced back again due to same reasons as on 16th September all the indicators were on the oversold mark. So again a bounce back was on the cards (not reversal because the primary trend was still heavily bearish with respect to the MACD). The bounce back lasted three sessions till 22nd September. What followed was I think again a random wave which some like to attribute to the global reasons but take a look and you will see that we were the one who corrected the most between 23rd to 26th September in comparison to other indices. Then on 29th September a new phase begin that we are calling B. I am considering this as B phase because unlike previous two this phase is completely bearish. Every indicator is in sell mode. What happened in following days was just a sort of correction or contrarian moves which will soon be followed by downtrend.

I was planning to explain the two charts. But it seems unfortunately I would have to use separate post for this I am sorry I tried to be brief and keep it simple. I hope you will find it helpful. Feel free to ask me anything here that you did not understand. Thanks a lot for your patience. I just hope this explains part of my reason. Sorry for the delay.

P.S.-I would love to hear from you people. Please do keep on posting your views on my methods and trading calls. Thank you sparing your precious time for reading my post.
Previous

 

[detrich]

One simple strategy to make money..
1) Take the signals from a loosing strategy
2) do exactly opposit of that..

so if you are loosing mony by buying straddle, then what about selling straddle (ofcourse you need to manage the risk of selling option)

Happy Trading.

LOL Thank you for your views. Looking forward to hear more from you.

and yes happy trading to you too.

 

[detrich]

detrich
I am very glad and please explain with graph
thanks

dear TVenkat,

I am trying to find appropriate charts for explanations but for the time being I am not able to do so. Please bear with me. In future I will try to do that so. Thanks a lot for your feedback. It was really good to hear from you.

 

[detrich]

yes u r right thats why i request all to read nifty fut trading people view they are trading with charts n software that tell where mkt heading n one more thing why u people think bailout is good n that will close further more bankruptions it is only for those who are finish others who are in line will give u profit from put ,but choice is urs just play with trend my request

Well said Praveenji, the first rule to trade is to always be with the trend.