Options Adjustments

[lemondew]

Nifty at 7331.

ATM long positions have increased in CE side. ATM short positions have increased in PE side. Things change quickly in OI.
Note: The increase in CE long position is marginal. The increase in PE short positions is comparatively more.

 

[toughard]

sorry too... removed the comment please you too take it off from your comment.. :thumb:

I am extremely sorry.. seems u completely misunderstood me ..i agree with u that Google is best and and went a step ahead that if google doesn't know then god only know no matter what the subject ...
may be some communication problem here .. i am not criticizing you ..

bye.
note : leave all this issues out from head .. as i guess today and tom may be good day to make money .. :thumb::thumb:

 

[toughard]

Present Situation....

Is MAX PAIN acted as support in a presently narrow looking contract... getting interested

 

[toughard]

Nifty at 7331.

ATM long positions have increased in CE side. ATM short positions have increased in PE side. Things change quickly in OI.
Note: The increase in CE long position is marginal. The increase in PE short positions is comparatively more.

dear lemondew are we trying here to spot the direction using Max Change in OI??
shall we continue with day trading or option adjustments on EOD basis?

 

[lemondew]

dear lemondew are we trying here to spot the direction using Max Change in OI??
shall we continue with day trading or option adjustments on EOD basis?

Just added a comment on OI thats it. Lets work on taking a position.

 

[toughard]

Just added a comment on OI thats it. Lets work on taking a position.

DONE!!!

Before we start let me tell you all that I may or may not have any positions which I Disclose/Study here openly in same or any other style that is discussed here with ...

lets start --- paper trading

1st trade- positional - intraday OI action is overlooked!!!

It look like 7400 and even 7300 is good resistance and as directional play it better to buy 7200 PE @ +/- 60 ( or even 7300 PE) with a stop as 7400 CE OI shedding below 4M:thumb:

Money Management - using 2% of capital

 

[lemondew]

K gr8, Just sharing my inputs.

NIFTY at 7353.00
The danger with buying 7200 pe @ 58

1) Nifty runs up in this case 58 will come down quickly
2) Nifty stays where it is for a week. IVs go down marginally and theta eats up premium
Assuming nifty stays at 7353 for 4 days with 20 days to expire and vega goes down marginally it would be worth 48.

How do u plan to deal these scenarios as and when if it arises
How about buying 7200 pe and selling 7100 pe at 36.

In this case if Nifty stays where it is for a week. IVs go down (even if it stays same) and theta eats up premium
our 58 would go down to 48 but 36 becomes 28. So a loss 2 points in this scenario Max loss again would be capped to of course 22.

Positive scenario Lets say if nifty touches 7200 in 4 days our 58 becomes 100 and 36 becomes 63.
Total profit 42- 27 = 15

Sure this can be done at runtime too but would be good if we can list how do we tackle the above 2 scenarios

DONE!!!

Before we start let me tell you all that I may or may not have any positions which I Disclose/Study here openly in same or any other style that is discussed here with ...

lets start --- paper trading

1st trade- positional - intraday OI action is overlooked!!!

It look like 7400 and even 7300 is good resistance and as directional play it better to buy 7200 PE @ +/- 60 ( or even 7300 PE) with a stop as 7400 CE OI shedding below 4M:thumb:

Money Management - using 2% of capital

 

[stock72]

K gr8, Just sharing my inputs.

NIFTY at 7353.00
The danger with buying 7200 pe @ 58

1) Nifty runs up in this case 58 will come down quickly
2) Nifty stays where it is for a week. IVs go down marginally and theta eats up premium
Assuming nifty stays at 7353 for 4 days with 20 days to expire and theta goes down marginally it would be worth 48.

How do u plan to deal these scenarios as and when if it arises
How about buying 7200 pe and selling 7100 pe at 36.

In this case if Nifty stays where it is for a week. IVs go down (even if it stays same) and theta eats up premium
our 58 would go down to 48 but 36 becomes 28. So a loss 2 points in this scenario Max loss again would be capped to of course 8.

Positive scenario Lets say if nifty touches 7200 in 4 days our 58 becomes 100 and 36 becomes 63.
Total profit 42- 27 = 15

Why not the other case .. let Nifty touches 7650 in 4 days ...?

 

[toughard]

NEXT is STATIC PUT CONDOR--

Funds employed 15% of capital...
Per lot trade need Rs 40000...
RR - 1:4

aim to achieve 10% profits on invested amount if loss then 2.5% of 15% of portfolio (an income generation) Effect on portfolio if loss 0.5% including all charges...
Porfolio RRR is 0.5% to 1.5%

please refer the pay out table in excel above for BO/BE points...

Portfolio design---
60% (15% X 4) structured trades like above
10% for naked option trading
20% for M2M (untouched)


Let see... as of now all trades are simulated

Toughard

 

[lemondew]

Why not the other case .. let Nifty touches 7650 in 4 days ...?

There is a stop at 7400 lets say if it runs at 7450 too in lets say 4 days
58 => 28
36=> 15

Loss= 30 - 21 = 9 points. We will get out at that point of time. Sure OI scenario will change at that point

Thanks