OTM Option writing

[Blackhole]

One strategy for Expiry Week :

Expiry Week Monday :

1) Choose OTM strike of both CE & PEs where OI is maximum (Option chain NSE)
2) If Nifty > vwap @ 10 am short that highest PE
3) If Nifty < Vwap @ 10 am Short that highest CE

can do both also,

SL: entry price violation

wait till expiry or square @3.25 pm and do it again on Tuesday and so on ... till expiry.

hmmmm seems interesting, will think about this and if feasible will try.

I succeeded in buy-sell on expiry day(sell bfore 3.10 to avoid heavy STT) in past not in sell-buy(needs good margin and most of the time makes sense only with huge size)

 

[mvkarthik]

pair sell
PE8600,CE8700

pair sell at-132.35
exit at-123.75
profit-8.6

 

[rh6996]

With all due respect sir, it seems from your query posts that you have bare minimum knowledge about Options ! (My apologies if I am wrong) In such a situation its best not to dabble in Options Writing! Better trade on paper for a few months and then take a decision again. And do keep in mind in a few months the LOT SIZE of all future and option contract shall rise, making the risk bigger!
AND
the most important point one must keep in mind about STOCK OPTIONS in India that most of them are illiquid ans have a large spread !

Take care.

 

[emoheal]

Tks RH6996

Yes sir ... u r rite ... I have just now started dabbling with Options .... i m using GANN strategy .... I draw GANN on the basis on 9.07 candles and accodingly I am BUYying call / put

I have noticced that options writer have more advantage then option buyer and so i want to now try relative safe option writing ... so choosing deep OTM to be written near expiry week

Thanks to valuable feedback from traderji ... lots of new statergy discovered

 

[c.trader]

write deep otm call / put of a perticular stock strike price is such as at that levels sock can not reach or not having such a movement
and wait until expiry
then ?
please help to understand

 

[rkkarnani]

One strategy for Expiry Week :

Expiry Week Monday :

1) Choose OTM strike of both CE & PEs where OI is maximum (Option chain NSE)
2) If Nifty > vwap @ 10 am short that highest PE
3) If Nifty < Vwap @ 10 am Short that highest CE

can do both also,

SL: entry price violation

wait till expiry or square @3.25 pm and do it again on Tuesday and so on ... till expiry.

Hello Dada, How are you!
Nifty vwap may be quite near the trading price, should one wait!!? At 10 AM volumes may not be very significant!! No idea though , never checked!
Do you trade this now or ever before or tracked this on paper! If yes, share your results please ! Concept looks nice to read, need to know if its worth to pursue !

 

[emoheal]

write deep otm call / put of a perticular stock strike price is such as at that levels sock can not reach or not having such a movement
and wait until expiry
then ?
please help to understand

At expiry, if price has not recahed near your strike price then options automatically expires and you get to keep the premium ...

If markets moves towards your strike price, then your SL: 50% of your entry price, will get HIT

 

[emoheal]

pair sell
PE8600,CE8700

pair sell at-132.35
exit at-123.75
profit-8.6

Pair seems quite interesting. Margin requirement 28,813 /- and both are nearest OTM ....

Just a question, what was your exit signal ? "target profit" or some other exit signal?

right now prices of the pair are (44.45 + 71.05= 115.5) so approx Rs.16 profit... so why exit earlier? anyways pair is protecting in bullish as well as bearish market

 

[mvkarthik]

Pair seems quite interesting. Margin requirement 28,813 /- and both are nearest OTM ....

Just a question, what was your exit signal ? "target profit" or some other exit signal?

right now prices of the pair are (44.45 + 71.05= 115.5) so approx Rs.16 profit... so why exit earlier? anyways pair is protecting in bullish as well as bearish market

thats is for for day trade
target for pair sell in daytrade is -10 to 20,20 is max target
normally one can get 5 to 10 points in daytrade

 

[emoheal]

thats is for for day trade
target for pair sell in daytrade is -10 to 20,20 is max target
normally one can get 5 to 10 points in daytrade

Thanks once again ............

As I am new to option game, I wanted to understand the logic why should one do intraday and not EOD?? Anyways Pair trading (the one u showed) looked preety safe and your stakes were protcted in bullish as well as bearish market.