Option trading with DanPickUp

[gmt900]

I get a message " Permission to download denied by the uploader"

 

[DanPickUp]

Well, then I do not know how to dis-lock as in the past I just uploaded the file and then it worked. No problem as there are other ways.

http://i50.tinypic.com/2ntczte.jpg
http://i47.tinypic.com/10n9weq.jpg
http://i45.tinypic.com/2wm1hko.jpg
http://i45.tinypic.com/ern04i.jpg
http://i45.tinypic.com/mvjejb.jpg
http://i49.tinypic.com/4l3rer.jpg
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http://i49.tinypic.com/347wo6o.jpg
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http://i47.tinypic.com/30rohax.jpg
http://i49.tinypic.com/2edxpxu.jpg

Download them and then create the PDF.

 

[gmt900]

Dear DanPickUp,

Thanks for the links.

Very informative article !

As in the past, I am confused the moment put leg of my short strangle went

in the money.

Since the market started moving up in the morning, I squared off 5900P I had

baught as a hedge on Friday in the process losing 1.95 points.

Now with nifty spot at 5987.35, I have my posititon standing at:

6200C : 61.95(S) - 14.85 = +47.10

6000P : 55.85(S) - 80.45 = -24.60

Profit = +22.50

Net Profit = +20.55

My profit on Friday when 5900P was standing was 27.25.

I feel I am not managing my trade well enough. I know there are various

ways I could adjust trade to ensure that I get at least the profit I started

with, but don't know how to go about it.

Could you suggest possible ways to manage this trade?

I hope you don't mind such requests. People like me are groping in the

vast field of options trading and we have just started , hence such basic

difficulties.

Thanks and regards,

gmt 900

 

[DanPickUp]

Dear Gmt900

Please use the < Go advanced button > in the future and then correct your post so that all the space in the horizontal line is used to its maximum and not only half.

1. Why have you been confused as your short put leg went in to the money? I do not understand that. If you take a short position you always have to be prepared that it gets in the money. Break even was given, so you did know where you get in danger.

2. As you post that you know various ways to adjust that you get at least your profit you started with, what is wrong with that?

I gave many ideas how to trade such a short strangle in the other thread and I did it for around one month at times when markets went to the break even points of the strategy. More I am not willing to do.

Sorry: Nothing personal. Just not my job as I get not any money for the time I spent by explaining it again with other details.

Good trading / DanPickUp

 

[vssoma]

download the file from here in pdf form


http://www.ziddu.com/download/21508791/bookfromdan.pdf.html

Well, then I do not know how to dis-lock as in the past I just uploaded the file and then it worked. No problem as there are other ways.

http://i50.tinypic.com/2ntczte.jpg
http://i47.tinypic.com/10n9weq.jpg
http://i45.tinypic.com/2wm1hko.jpg
http://i45.tinypic.com/ern04i.jpg
http://i45.tinypic.com/mvjejb.jpg
http://i49.tinypic.com/4l3rer.jpg
http://i49.tinypic.com/2m2gh3n.jpg
http://i49.tinypic.com/347wo6o.jpg
http://i50.tinypic.com/20i8m4p.jpg
http://i47.tinypic.com/30rohax.jpg
http://i49.tinypic.com/2edxpxu.jpg

Download them and then create the PDF.

 

[beliveonit]

hello DanPickUp,
reading all your posts, i know you have a great knowledge and understanding of options. and you must be a great option trader. i have one request, there is no thread on traderji about delta trading.
so can you please start a new thread completely on a delta trading?
about delta trading strategies and how we can earn profit keeping our delta neutral.
how we can earn from vol, theta?
credit spreads, calender spreads, and many other advanced strategies, and logic behind those in delta trading.
i would be thankful to you, if you able to give us in depth knowledge of delta trading.
thank you.

 

[DanPickUp]

hello DanPickUp,
reading all your posts, i know you have a great knowledge and understanding of options. and you must be a great option trader. i have one request, there is no thread on traderji about delta trading.
so can you please start a new thread completely on a delta trading?
about delta trading strategies and how we can earn profit keeping our delta neutral.
how we can earn from vol, theta?
credit spreads, calender spreads, and many other advanced strategies, and logic behind those in delta trading.
i would be thankful to you, if you able to give us in depth knowledge of delta trading.
thank you.

Dear Beliveonit

First of all: Thanks for your kind words.

Circle opening:

Posting this and that strategy and telling you and others what to do and what not to do will not be the solution to option strategy trading. You have to understand it by your self.

As a start: Read the book: The bible of option strategies by Guy Cohen or Options Visually traded by Paul Forchone, and you will have for the moment more than enough basic ideas about many different option strategies and under what market conditions they can be traded (High vola, low theta, delta neutral and so on). This will give you the possibility to earn decent profits and to survive as an option strategy trader.

During the next step, as you will have some income from trading, you will have enough time to improve and understand in dept your way of option strategy trading day by day.

Also during that time you will start to recognize what and which option strategy fits your personalty and risk profile best and you will start to fine tune those specific option strategies as you start to love them.

Circle closed as you want me to already post from here on, but you not worked through the distance before. No critics and no personal thing: I just had to work through all of it at first with my mentor and after by my self. So no interest to post for free such advanced option strategy trading and not for sale, as I am not here to sell any thing.

As a start up help for your market: You may know dear Linkon7. Did you read through the following thread, as he trades your market which is NSE and I trade on the CME:

http://www.traderji.com/options/28235-good-profit-hedged-nifty-positions-straddle.html#post301893

Also an excellent thread and one you surely will enjoy.

Good trading and all the best / DanPickUp

 

[beliveonit]

Dear Beliveonit

First of all: Thanks for your kind words.

Circle opening:

Posting this and that strategy and telling you and others what to do and what not to do will not be the solution to option strategy trading. You have to understand it by your self.

As a start: Read the book: The bible of option strategies by Guy Cohen or Options Visually traded by Paul Forchone, and you will have for the moment more than enough basic ideas about many different option strategies and under what market conditions they can be traded (High vola, low theta, delta neutral and so on). This will give you the possibility to earn decent profits and to survive as an option strategy trader.

During the next step, as you will have some income from trading, you will have enough time to improve and understand in dept your way of option strategy trading day by day.

Also during that time you will start to recognize what and which option strategy fits your personalty and risk profile best and you will start to fine tune those specific option strategies as you start to love them.

Circle closed as you want me to already post from here on, but you not worked through the distance before. No critics and no personal thing: I just had to work through all of it at first with my mentor and after by my self. So no interest to post for free such advanced option strategy trading and not for sale, as I am not here to sell any thing.

As a start up help for your market: You may know dear Linkon7. Did you read through the following thread, as he trades your market which is NSE and I trade on the CME:

http://www.traderji.com/options/28235-good-profit-hedged-nifty-positions-straddle.html#post301893

Also an excellent thread and one you surely will enjoy.

Good trading and all the best / DanPickUp

hello DanPickUp,
thanks for the reply. yes you are absolutely right.
i'll read those books. can i get pdf of those books on net?
and yes i know linkon7. i have already read that thread. its really good.

 

[MANISH_DAMANI]

Hi Dan your thread is very nice and you deserve to be complemented for this and many have done earlier sorry for little late from my side.
Well I have traded 2-4 times options and made 2-4 times money in every trade in out of money options long time ago. I have traded it with help of technical analysis but not satisfied for continuous because I felt that something was missing in interpreting options and to become a successful trader. Afterwards I shifted to commodity so not done it for long time. But recently I got a interview call from MCX-Sx for trading in options with strategies and Greeks. I knew strategy very earlier but dont know much about greeks use with options strategy. Now a days I am trying to improve my knowledge in options. And your thread has helped me alot.
well could you put some light on option greeks with strategies like what is best standard ratio of delta, vega, theta etc. so that is good for writing options in context with Indian market.For example say if delta is near 0.9 or 0.7 so good to write calls or or not etc. etc.
If somebody read market technically well then is it good to use options for trade or greeks should be taken into consideration before making any strategy. so that right strike price as per greeks is to be chosen for writing options.Or greeks are must for safety even if how good is one in technicals.Hope you put some light for the benefit for all.

 

[DanPickUp]

Hi Dan your thread is very nice and you deserve to be complemented for this and many have done earlier sorry for little late from my side.
Well I have traded 2-4 times options and made 2-4 times money in every trade in out of money options long time ago. I have traded it with help of technical analysis but not satisfied for continuous because I felt that something was missing in interpreting options and to become a successful trader. Afterwards I shifted to commodity so not done it for long time. But recently I got a interview call from MCX-Sx for trading in options with strategies and Greeks. I knew strategy very earlier but dont know much about greeks use with options strategy. Now a days I am trying to improve my knowledge in options. And your thread has helped me alot.
well could you put some light on option greeks with strategies like what is best standard ratio of delta, vega, theta etc. so that is good for writing options in context with Indian market.For example say if delta is near 0.9 or 0.7 so good to write calls or or not etc. etc.
If somebody read market technically well then is it good to use options for trade or greeks should be taken into consideration before making any strategy. so that right strike price as per greeks is to be chosen for writing options.Or greeks are must for safety even if how good is one in technicals.Hope you put some light for the benefit for all.

Dear MD

Thanks for your compliments and if the thread helped you to improve your knowledge about options, it did his work and idea behind it.

As I got some knowledge from this forum about future trading, I decided to write a thread about option trading as a thank you to the people who did good to me.

Coming to some of your questions:

Option strategy trading can be done very well and successfully on TA knowledge in combination with other tools like OI, Put call ratio, low and high vola, just to mention a few.

The most important point is to understand your option strategy you trade in every little detail. That includes the risk you take with this option strategy, as different option strategies include different risk profiles. Here you not have a best or worst option strategy as there are so many possibilities to trade, at least at the CME.

I do not make decisions on what you ask like; If delta is there and there, should I write now options or what so ever.

So how do I think? Let me give you just once and only one simple example:

Let me take your question again: If delta is at 0.7 or 0.9, should I sell options here?

My view in such a case: How can I bring my self into a situation to sell a call or put over the zero line at that point in a hedged manner? As simple and as complicated as it sounds: That is the inner circle of all thoughts when implementing any option strategy. Any other idea or thoughts have no relevancy to my kind of trading, what ever strategy I finally trade.

Different traders, different thoughts and attitudes.

Good trading / DanPickUp