Options - My way of looking at it

[jamit_05]

yes I will review this postion if BD of 6450 or BO of 6550 showing possiblity of trend.....as both are delta 0.5, 50 pts up or down should keep it neutral to price movement...and by monday I will have some time decay also and can get out easily

Nice to see that you have taken the trade.

As expiry nears the delta will rise, somewhat sharply, on the straddle. What step will you take if price breaks 6550 today itself.

Tks for encouraging options education..

 

[gmt900]

at 11.30 am, Max Pain was @ 6450 and 6450CE/6450PE were @ 96/23, i e total 119.

 

[jamit_05]

Interesting breakout on the upside... 65 straddle now at 104... tough times mightve begun... looking forward to seeing what counter steps could be taken...

 

[pratapvb]

Nice to see that you have taken the trade.

As expiry nears the delta will rise, somewhat sharply, on the straddle. What step will you take if price breaks 6550 today itself.

Tks for encouraging options education..

if it BOs today itself I will be long intraday which will more than hedge my position.

but for me intraday is not even long yet

 

[jamit_05]

if it BOs today itself I will be long intraday which will more than hedge my position.

but for me intraday is not even long yet

How would you take Long intraday? In futures, in that case, you will be using a SL... so the equation changes as it becomes an independent trade subject to its own laws of probability.

It would be interesting to see how you tie the loss of the shorted straddle to gain from another options or futures combination without additional risk.

 

[pratapvb]

How would you take Long intraday? In futures, in that case, you will be using a SL... so the equation changes as it becomes an independent trade subject to its own laws of probability.

It would be interesting to see how you tie the loss of the shorted straddle to gain from another options or futures combination without additional risk.

I will be trading intraday as per my intraday rules...so if a UT comes I will be long...if a DT comes I will be short.....

if say I trade 4 lots bnf as intraday.....I have sold only 2 lots NF as straddle so beta of bnf...intraday trend if sets in is all in my favour

also suppose my target is to make about 50pts from this straddle...and with a R:R of 1:1 I am ok until straddle price goes to 150....so review between 125-150 straddle price is also an option

 

[jamit_05]

I will be trading intraday as per my intraday rules...so if a UT comes I will be long...if a DT comes I will be short.....

if say I trade 4 lots bnf as intraday.....I have sold only 2 lots NF as straddle so beta of bnf...intraday trend if sets in is all in my favour

I understand that...

You have distributed your risk in two halves... for the first half you have shorted the straddle... and the other half you will be trading futures as you usually do.

So, if price goes sideways you earn from straddle but will be losing on the futures and if it trends you lose on the straddle and earn on the futures... and in that you will manage to extract profits.

Okay..

 

[pratapvb]

out position at 98 BE....as DT as set in....am BNF short

 

[pratapvb]

out position at 98 BE....as DT as set in....am BNF short

FYI the 6500 straddle is now 84 pts....thinking of getting into it again...and reviewing on monday after taking the weekend decay...as mkt still around 6500

 

[TradeOptions]

Pratap ji, Any strategy for the election results date ?

The election results are to be declared on Friday 16 May 2014. Will it be a gap up or gap down this time and how to play it.

Last time, it was the 18 May 2009 Monday, on which the election results were declared and the SENSEX surged up 2,110.79 points to close at 14,285.21, from its previous closing of 12,174.42, for its largest single day rally.