Paper Trading Nifty Straddles

[munde_77]

squared off strategy 1 at today open at 146 !!! 50 % profit done !!!!

gr8 yaar. keep it up

 

[munde_77]

gr8 yaar. keep it up

Any idea for trading short straddle

 

[sumeetsj]

I have created a position yesterday.

Shorted Nifty Apr 2800 PE at 145

Shorted Nifty Apr 2700 CE at 165

This is a Short Gut position i have created.

 

[AW10]

For benefit of others who are confused with Short straddle /strangle/gut strategies, here is the simple comparision

Short Straddle = Sell ATM put and ATM call.. eg - sell 2750 put and sell 2750 put, when mkt is at 2750

Short Strangle = sell OTM put and call.. eg = sell 2700 put and sell 2800 call when mkt is at 2750.. Both options are out of the money here by 50 rs.

Short Gut = Sell ITM put and call.. i.e opposite of strangle
eg = sell 2700 call, sell 2800 put, when mkt is at 2750.. Both the options are almost 50 Rs in the money here.

Happy Trading.

 

[jstraju]

AW10,
missed your posts off late,
Raju.
Can you explain benefits of gut strategy against straddle,strangle

 

[myvineet]

For benefit of others who are confused with Short straddle /strangle/gut strategies, here is the simple comparision

Short Straddle = Sell ATM put and ATM call.. eg - sell 2750 put and sell 2750 put, when mkt is at 2750

Short Strangle = sell OTM put and call.. eg = sell 2700 put and sell 2800 call when mkt is at 2750.. Both options are out of the money here by 50 rs.

Short Gut = Sell ITM put and call.. i.e opposite of strangle
eg = sell 2700 call, sell 2800 put, when mkt is at 2750.. Both the options are almost 50 Rs in the money here.

Happy Trading.

sir, i think you want to right 2750 call & 2750 put there...

missing your post nowadays sir & waiting eagerly for start of thread ...

vineet

 

[heeemz]

Hi Bandlab, AW10, Dumdum and others (and of-course not to miss the site owners superb stuff):

Wow, this seems to b excellent forum for options finally found the great community discussion options strategy.

This is a good idea, you guys are doing great job. I have been trading on Nifty Options for last couple of months and to be truthful I have been marginally on loosing side so far but I guess that has to do with learning process, have made some stupid errors  Initially I started with buying options in case one is playing on long side, the move has to happen very fast and it needs to happen in direction you are playing else time decay hits very badly. Thats where I decided to go with hedging positions (on long side) but even in that case if it takes longer to go in which ever direction time decay hits badly. The next attempts have been on shorter side with combinations (straddle etc) and this has been some what better but it takes decent amount of margin blocked. But it works well, it timed properly.

My understanding so far well, lot to learn yet and thats why I am here in this group

1. Trade on long side in options only if you are 100% sure of market direction in next few sessions (extreme short term to short term)
2. Trade on short side in options with hedging positions should be done just few days before series is to become current, thats where we can get decent profits from premium

Please correct me if I have misunderstood any thing

And I would like to paper trade with you guys for April series when do we go for it, Tomorrow or Monday? Any guess on current month expiry range?

Cheers,

Heeemz

 

[bandlab2]

strategy 2 hit stoploss.

so in 2 months, strategy 1 hit prifit 50% 2 times and strategy 2 hit stop loss 50% 2 times.

tomorrow we will initiate strategy 1 for april. we have 4 holidays in april, ofcourse the premium is decided considering this anyways

 

[munde_77]

strategy 2 hit stoploss.

So in 2 months, strategy 1 hit prifit 50% 2 times and strategy 2 hit stop loss 50% 2 times.

Tomorrow we will initiate strategy 1 for april. We have 4 holidays in april, ofcourse the premium is decided considering this anyways

pleae post here before entering

 

[AW10]

sir, i think you want to right 2750 call & 2750 put there...

missing your post nowadays sir & waiting eagerly for start of thread ...

vineet

Thanks Vineet for correcting. You are right, that shd be 2750 call and 2750 put.

Happy Trading