Options Trading Strategies

[devangan123]

Please refer to http://www.traderji.com/options/24278-options-trading-strategies-6.html#post227085 .

The position first started from 22.09.2008. From that day the positions are being posted at nifty future trading part II.

In the graph the latest position is shown.

ohh sorry i forgot that thing , yes i remember i saw that on expiry day in positional 2 thread

Devan

 

[niftychance]

Hi niftychance

Yesterday I was in long position (fut) and sold position of 4000 CE and PE. My planning was to reverse the future position to short at 3965. Then I have changed the 4000 strike price to 3900 strike price when nifty was near 3900 and 3900 strike price to 3800 strike price when nifty was near 3800. If nifty could touch 3700 today, I could have to change the strike price again.

The change of strike price is done to maintain the liquidity. My experience is that spread increases in the ITM options.

Hope u have understood it.

Thanks Satyajit da,

Got the gist of it ... but not the details, but for that i will have to do the numbers chrunching myself ...

I think, today again it will be switch to longs for the future part..

Thanks for the detailed reply and nice to know your ID here is made up of your name and that of your better half ...

Thanks

 

[pjs127]

hi
is any one who can help me in arbritage bussness in volatility trading by delta neutral. already using grrek software. we want to refine our stratigies for long and short gamma without much of the risk.normally it is suggested for spreads. but current market does not give the oppertunity because of the high volatility.how about the strangle pl reply

 

[orderflow13]

hi
is any one who can help me in arbritage bussness in volatility trading by delta neutral. already using grrek software. we want to refine our stratigies for long and short gamma without much of the risk.normally it is suggested for spreads. but current market does not give the oppertunity because of the high volatility.how about the strangle pl reply

you mean buying strangle cuz of volatility? but risk is there. Did u try calendar spread? if u can generate high volume by arbitrage and so brokerage is less, its a good one
Also curious does ur software analyze arbitrage opportunist by difference in spread,wrong option pricing or it analyze by implied volatility, boilinger bands etc?

 

[orderflow13]

Reliance for option ideas

Sunil come up with a research thought for buying option in stocks which beta is high, so traders get benifited, by my view ril is the ace when it comes to speculative/judgmental trading.
Posted avg true range, which usually helpful for placing ur stoplosses, hope we can use it for getting the range of reliance, and use option strategies like wise

 

[orderflow13]

 

[orderflow13]

 

[theekar]

today open intersts of puts decreases and calls increases,
what does it mean?
anyone help me to get clear picture on this

 

[orderflow13]

today open intersts of puts decreases and calls increases,
what does it mean?
anyone help me to get clear picture on this

answer can given by to style, one is bookish answer, n second is hidden messages in it.
1) today call options been mostly traded, most guys buy calls and most guys sell calls compare to put option.
2) to complete a trade there need to be a buyer for every seller, so if one has to buy a call then one has to sell that call, selling calls need more margin and buying call need less margin, so option sellers r smart crowd ( its just loose consideration, though things vary as per personal style), also one buy call to hedge his/her short nifty,here more margin requires to do that as well, so this type of buyer is also considered to be a smart money, all in all when open interest in call option increases its bearish, suggests smart money expecting market may go down.
Hope this helps as its not a 2 para concept one need to go deep to study everything.This is the best way i can clarify.

 

[theekar]

when open interest in call option increases its bearish, suggests smart money expecting market may go down.
Hope this helps as its not a 2 para concept one need to go deep to study everything.This is the best way i can clarify.

thank u alex
thats what i expecting to know
now clear about it .