Option trading with DanPickUp

[DanPickUp]

I think ,it is short strangle not short straddle.
Selling put and call at same strike price is called short straddle.

Question is which one strategy 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?

Dear Muinali

In option trading, two weeks are not a big time frame. Such time frames are called short time frames or some times middle term time frames but never big time frames. What should I call an option which has one year of life time< . I am clear that you not have such kind of options in India, but the CME has them and they are used to protect our self against losses.

As you tend to be a directional option trader, I recommend you to always use options from the next series. Why<

Beginners make those mistake to bet with short time options and lose a lot of money with that. An option with a longer live time gives you a better chance to recover losses and also time decay is not as much against you as it is in short time options.

Keep this little lesson and what is told as very serious as it is your money you will spent in the market.

All the best and good trading

DanPickUp

 

[rey7271]

if u have big margin fund ... u do delta hedge in option then u can try all stretagies.... mrunali

 

[muinali]

Dear Muinali

In option trading, two weeks are not a big time frame. Such time frames are called short time frames or some times middle term time frames but never big time frames. What should I call an option which has one year of life time< . I am clear that you not have such kind of options in India, but the CME has them and they are used to protect our self against losses.

As you tend to be a directional option trader, I recommend you to always use options from the next series. Why<

Beginners make those mistake to bet with short time options and lose a lot of money with that. An option with a longer live time gives you a better chance to recover losses and also time decay is not as much against you as it is in short time options.

Keep this little lesson and what is told as very serious as it is your money you will spent in the market.


All the best and good trading

DanPickUp

danpickup bro
thanx for sugession i will keep all in my mind.some of us are very successful in option trading like linkon bro,but not getting acually why........when .............how...........and what.......? in indian senario.
yes you are right i am in initial phase of option trading.i did some trade before but it was long time back some are executed well and some stupidly
now i trade in cash generally .i am dieing to trade option so before i jump in trade i want to spend my time to learn all senario

 

[DanPickUp]

if u have big margin fund ... u do delta hedge in option then u can try all stretagies.... mrunali

Dear Rey7271

I request you to stop posting in this thread as you are not in the position to do so with your limited knowledge and the wrong posts you do. You just disrupt the flow of the thread.

Please open your own thread to post what ever you know there and just keep out to do so here.

Thank you.

 

[rey7271]

ok sorry to disturb bro.................. anyway what u say about this month exprity nifty close ?

 

[DanPickUp]

Ok sorry to disturb bro.................. anyway what u say about this month expiry nifty close ?

Dear Rey7271

I guess you went through the posts in this thread about the way I think about market direction questions and predictions. We have a Best example in this section of the forum, where thoughts of market direction have been taken as granted and not happened until now. Never mind as we all started once on what ever level.

If I ever make any comments about markets, it is only for a time frame of a day or less, as I am not a real fundamental trader.

I am more or less a pure daily TA trader, which means no day trader, which uses more or less no indicators and that needs adjustment many times in the process of coming to a definitive result for an entry or exit.

I use some other ideas like OI, demand on the future, market correlations, maths, vola, price differences on the options, and some other tools which can bring me in the situation that the odds are with me.

What does this mean< Nothing as I still can be wrong.

Now where can Nifty expire this month<

As there are still a few days to go, we have to watch the whole market as a whole house and we have to watch where the elevator moves. At the moment I make this post, the elevator moves down and we will see after US market closes where Nifty elevator will open his door tomorrow.

Try to get information from the Singapore exchange about that as they have a Nifty traded more or less around the hours. There you have a chance to see where Nifty could gap too in the morning.

Good trading

DanPickUp

 

[DanPickUp]

By the way< I do not mind if people are posting and asking questions here.

BUT I MIND VERY SERIOUSLY WHEN PEOPLE TRY TO SHOW OFF HERE WITH LIMITED KNOWLEDGE AND TRY TO LEAD OTHERS IN A NOT SERIOUS AND LIMITED WAY.

Hope every body gets the point for any future post.

Thank you and all the best in trading

DanPickUp

 

[muinali]

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.

bro
you can see chart here also
http://chartink.com/stocks/nifty.html
this is good and fast online eod chart to watch nse script if you ever need

Uploaded with ImageShack.us

 

[DanPickUp]

bro
you can see chart here also
http://chartink.com/stocks/nifty.html
this is good and fast online eod chart to watch nse script if you ever need

Uploaded with ImageShack.us

Thanks for the link

 

[DanPickUp]

Hi

A talk under pros which was posted from me a long time ago in an other thread. As many of you have worked through that thread here, it may is a bit more easy for you to understand what they talk about.

https://optionvue.webex.com/optionv...19578647&DAK=E5CBC769302188473FFF722C89974E3F

There is some advertisement in it and just forget about it. Listen to the talk about delta neutral trading.

It would take me a lot of time to write it down and explain it with words. So that what is told is the way you have to know and clearly understand when going against such pros.

As retail trader you can go against them at the moment you understand how they work.

Good trading

DanPickUp