Option trading with DanPickUp
- Thread starter DanPickUp
- Start date
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although it was kinda diplomatic but still i appreciate it 
HI Danpickup
is it worth to trade like directional option trader in "jindelsteel"
description:-at 19/12/2012
underlying value-461.95
fut value(dec)-462
(jan)-465.4
(feb)-409.50(not exersising)
call-otm(dec)-480-3.25
ITM(DEC)-460-10.00
PUT-OTM(DEC)-460-8.85
ITM(DEC)-480-23
**Subjects which will be spotted on
1. What kind of option trader do I want to be?
ans. initially directional trader i wanted to be
2. Direction of the market.
ans.
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3. Volatility in the market.
ans. 1st greek-volatility(vega)
(A) historical volatility(statical volatility)
ANNUALISED VOLATLITY-36.65
DAILY VOLATILITY-1.92
(b) implied volatility(implied volatility increases when the market is bearish and decreases when the market is bullish)
iv-31.97
- Time frame of our option trade.
7DAYS
"not able to interpret vola"
is it worth to trade like directional option trader in "jindelsteel"
description:-at 19/12/2012
underlying value-461.95
fut value(dec)-462
(jan)-465.4
(feb)-409.50(not exersising)
call-otm(dec)-480-3.25
ITM(DEC)-460-10.00
PUT-OTM(DEC)-460-8.85
ITM(DEC)-480-23
**Subjects which will be spotted on
1. What kind of option trader do I want to be?
ans. initially directional trader i wanted to be
2. Direction of the market.
ans.
Uploaded with ImageShack.us
3. Volatility in the market.
ans. 1st greek-volatility(vega)
(A) historical volatility(statical volatility)
ANNUALISED VOLATLITY-36.65
DAILY VOLATILITY-1.92
(b) implied volatility(implied volatility increases when the market is bearish and decreases when the market is bullish)
iv-31.97
- Time frame of our option trade.
7DAYS
"not able to interpret vola"
Dear Muinali
Frankly spoken< I am a 100% option on future trader. No idea about your stock, as I never heard about it. The only thing I can do is look at the chart in yahoo.
There it seems that the stock is in a very strong uptrend and seem to have reached an old high with the help of some good volume. Short time it could go further up and I could comment about some more thoughts.
BUT what me concerns are the 7 days you want to bet on, as we have a few coming holidays in front of us. Buying in such an environment, even if market is in an uptrend, is in my view not to recommend as time decay is absolutely against you and we take trades when the odds are for us.
As this is your trade and your money, it is your choice. Trading is a risk taking game and my risk appetite is not very big around Christmas time. So, that is a very personal choice and in no way an advise.
If you want to bet on it, I would recommend you to use options from the new series and not from the actual one. Your choice.
Good trading
DanPickUp
Edit around market close in the States< As the stock seems to follow Nifty future, I would be careful with calls, as Nifty follows the Dow many times, which not means that they have the same chart picture. I only talk about attitudes which some times are similar but those attitudes are reflected in different manners, means not in the same amount of points the other markets move.
As the housing data in the states are negative, the Dow and the S^P 500 felt rapidly after reaching new highs. The bonds show bullish flags on the hourly chart and that has to be watched. Even the GBP and the EUR have turned negative as the USD started today to move up on the hourly chart.
But as always< That was the way I analyzed and thought at the moment the post was made under the given market situation which can have changed rapidly until you read that post. Always make your own decision about what happens and do not listen to others. Hope you got the point.
Frankly spoken< I am a 100% option on future trader. No idea about your stock, as I never heard about it. The only thing I can do is look at the chart in yahoo.
There it seems that the stock is in a very strong uptrend and seem to have reached an old high with the help of some good volume. Short time it could go further up and I could comment about some more thoughts.
BUT what me concerns are the 7 days you want to bet on, as we have a few coming holidays in front of us. Buying in such an environment, even if market is in an uptrend, is in my view not to recommend as time decay is absolutely against you and we take trades when the odds are for us.
As this is your trade and your money, it is your choice. Trading is a risk taking game and my risk appetite is not very big around Christmas time. So, that is a very personal choice and in no way an advise.
If you want to bet on it, I would recommend you to use options from the new series and not from the actual one. Your choice.
Good trading
DanPickUp
Edit around market close in the States< As the stock seems to follow Nifty future, I would be careful with calls, as Nifty follows the Dow many times, which not means that they have the same chart picture. I only talk about attitudes which some times are similar but those attitudes are reflected in different manners, means not in the same amount of points the other markets move.
As the housing data in the states are negative, the Dow and the S^P 500 felt rapidly after reaching new highs. The bonds show bullish flags on the hourly chart and that has to be watched. Even the GBP and the EUR have turned negative as the USD started today to move up on the hourly chart.
But as always< That was the way I analyzed and thought at the moment the post was made under the given market situation which can have changed rapidly until you read that post. Always make your own decision about what happens and do not listen to others. Hope you got the point.
Last edited:
Hmm
That is a short strangle< http://www.optiontradingpedia.com/free_short_strangle.htm
and that is a short straddle< http://www.optiontradingpedia.com/free_short_straddle.htm
Keep the following link in the future and if you are not sure about what kind of strategy you talk, first use the search tool in that link and check the strategy and how it is done and then come back and post.
http://www.optiontradingpedia.com/
Thank you
That is a short strangle< http://www.optiontradingpedia.com/free_short_strangle.htm
and that is a short straddle< http://www.optiontradingpedia.com/free_short_straddle.htm
Keep the following link in the future and if you are not sure about what kind of strategy you talk, first use the search tool in that link and check the strategy and how it is done and then come back and post.
http://www.optiontradingpedia.com/
Thank you
i think ,it is short strangle not short straddle
selling put and call at same strike price is called short straddle
quetion is which one stretegy will be best if one decided to trade if time frame big (2week)
somewhere i read stock options can be exercised before 3rd friday as directional option trader,is it a good idea?
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Uploaded with ImageShack.us
rey7271, danpickup bro can you tell me ,how will it work?
1. while it it bullish script not bearish
2. very short time frame if i go to collect premium what should i do?
selling put and call at same strike price is called short straddle
quetion is which one stretegy will be best if one decided to trade if time frame big (2week)
somewhere i read stock options can be exercised before 3rd friday as directional option trader,is it a good idea?
Uploaded with ImageShack.us
Uploaded with ImageShack.us
rey7271, danpickup bro can you tell me ,how will it work?
1. while it it bullish script not bearish
2. very short time frame if i go to collect premium what should i do?
Last edited:
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