Options - My way of looking at it

[pakatil]

there are 51 people who have thanked the 1st post.....and then down to 8-10 by the middle of the 2nd page and now down to about 5......

looks like I have scared away most of the people with my ramblings, sticking to elementary math notwithstanding

No Pratap, You are doing excellent. Problem is with we dumb guys.....

Keep it going....:thumb:

 

[manishchan]

there are 51 people who have thanked the 1st post.....and then down to 8-10 by the middle of the 2nd page and now down to about 5......

looks like I have scared away most of the people with my ramblings, sticking to elementary math notwithstanding

No Pratap, You are doing excellent. Problem is with we dumb guys.....

Keep it going....:thumb:

Totally agree with pakatil ... I have been saving all the reads for this long weekend coz these alpha, gama, theta, beta, greek, latin are taking time to peirce my brain Please keep it going :thumb:

 

[Somatung]

there are 51 people who have thanked the 1st post.....and then down to 8-10 by the middle of the 2nd page and now down to about 5......

looks like I have scared away most of the people with my ramblings, sticking to elementary math notwithstanding

Did not know that we post to only count then how many thanks we got for the made post.

By the way: Your explanations are absolute fine :thumb: No problem to understand them. Rather counting thanks, I would be pleased if you continue with your flow of educational posts. :clapping: Have a nice weekend.

 

[jamit_05]

For real learning to begin, the best thing to do now, is start posting real/paper trades...

 

[pratapvb]

Did not know that we post to only count then how many thanks we got for the made post.

By the way: Your explanations are absolute fine :thumb: No problem to understand them. Rather counting thanks, I would be pleased if you continue with your flow of educational posts. :clapping: Have a nice weekend.

I was not counting the thanks. I was just mentioning it as an indicator of possibly having lost many people along the way, which for me meant that I am possibly not conveying well enough. Sorry if you thought otherwise

 

[pratapvb]

From the above we have seen we can use our knowledge of options to

1. Be in the trend with lower overnight risk

2. Trade to a view of
A. Sideways
B. Moderately bullish/bearish
C. Moderately bullish/bearish but capped

3. Capping our downside risk (losses) using OTM options

So this rounds up and ends my ramblings.

There are more strategies out there, but hope I have enabled you to now be able to understand these, and even make a suitable option combo as per you situations.

 

[pratapvb]

For real learning to begin, the best thing to do now, is start posting real/paper trades...

The idea of this thread was to share the way I see option, in case it helps some more people out there understand it.

Now all are welcome to post there real/paper trades here, and discuss it using the above or in their own threads as suitable.

 

[Tlahuicole]

there are 51 people who have thanked the 1st post.....and then down to 8-10 by the middle of the 2nd page and now down to about 5......

looks like I have scared away most of the people with my ramblings, sticking to elementary math notwithstanding

I never know anything about options, I am going to take baby steps so I am going to go through basics in some time, and then will start with your posts. I think many of them are like me as you know options and futures are a different battlefields.

Thats why many of them have not recognized your later posts so no worries and I request you with all my efforts to kindly proceed on with your efforts to improve our education in trading .

 

[gmt900]

With your permission, I would like to seek advice on possible adjustments to the following trade;

I entered into June 2014 short straddle and collected points as follows:

6000CE 532
6000PE 295

Total 827.

I wanted to close the trade with profit of about 80 points by buying CE @ 595 and PE @ 152 , Total 747

Unfortunately, PE order got filled @152, however CE order did not get filled.

Now, CE is trading at 750. So, notional loss is 827 - 152 - 750 = -75 points.

Nifty is at 6504. I can wait to get out of the trade with profit.

Is it advisable to take an insurance to hedge risk if nifty keeps climbing up ?

If yes, what are the ways one can do it?

 

[Somatung]

@Gmt900

Short call = put

http://www.theoptionsguide.com/synthetic-long-call.aspx

http://www.theoptionsguide.com/synthetic-long-put.aspx