Paper Trading Nifty Straddles

[munde_77]

3% per month consistently for the past 12 months is excellent track record. being aggressive is not a quality of a good trader. most traders have only risk management and capital preservation in mind. and u seem to handle both perfectly. :clapping: :thumb:

Linkon Thanks for your comment. I am also thankful for the oracle options software.IT IS REALLY SUPERB. Previousy I needed 2-3 hours daily for doing home work and analysing options by using calculator and writing in note book for probabilities of closing on various strike price. but now I need only 30-60 mins for doing home work and analysing nifty on various strike price .
Previously everthing I used to manually but now more than 70% work gets done automatically. Still two or three things that I am not able to understand.
I am not able to know the realtime profit and loss of my account in my portfolio.
i.e todays gain or loss.
Could you tell me any other software which is better than oracle options.
I am willing to pay the price. It shoud support Nse options. Thanks in advance

 

[linkon7]

just one case study...
today, markets gapped down by 100 points.
3100 put which closed the previous trading day at 57 went up by 45% to 82-84 levels when the market started trading sideways.
3100 call which closed the previous day at 216 went down by 30-35% to 145 to 150 levels at the same time.
difference : in put 25 to 27 points
: in call 66 to 71 points.

sentiments:
asian markets are down by 4%, we were overbought and there was supposed to be good amount of profit booking. Under such circumstances, conviction on the long side was not great and bears were just beginning to smell blood.

observation:
a person who wanted to go short by trading options could have bought 3100 puts or could've sold 3100 calls. but a 100 point gap down resulted in more profit for the person who shorted.

IMHO, buying options is good, if you want to hedge a long position. like today, if you go short in nifty at 3170 and the markets break down to 3130 levels, you can book your profit or buy a call of 3200 for the next day if you want to carry your nifty shorts for the next day.

It would be silly believe that the huge amount of buyers of options are novices. But they buy these options to hedge positions. risk management is what the big sharks do. they dont deal in options to make money, but to ensure they dont loose money.

 

[AW10]

Value of straddle at close of 6/April

3200 Call = 147
3200 Put = 91
Total = 238

Buying price was = Buy 3200 Straddle, 131+ 105 = Rs. 236

Net P&L = 238-236 = +2 points

Happy Trading.

Update on Strategy 2 Postion - i.e. Long 3200 April Straddle
Value of straddle at close of 15/April

3200 Call = 325
3200 Put = 27
Total = 352

Buying price was = Buy 3200 Straddle, 131+ 105 = Rs. 236

Net P&L = 352-236 = +116 points i.e. = +48.7%.

As per the rule of the strategy - our target was 50% of premium.
So, I am taking the liberty to close this strategy as TARGET ACHIEVED.

(infact intraday high for the call was 334 and low for the put was 26.. which would have give the peak price of the straddle as 334+26 = 360. and the profit of 360-236 = 124 which is anyway above 50% target return)

So in this month, when our stop was hit on Short straddle strategy, Long straddle strategy has hit the target (maybe we were lucky to see 35% move on NIFTY in this month).

Lets wait for next paper trade and see.

Happy Trading.

 

[thesaint]

MUNDE77

how do u enter nse quotes what do u write in the symbol area so that we can get nifty options as i cannot get the option prices in the option oracle software pls do help me or pls upload a screen short how to enter indian stock symbols in the software pls frds
hope to hear soon

regards

 

[munde_77]

we can discuss on tuesday

 

[ghosh_ak34]

MUNDE77

how do u enter nse quotes what do u write in the symbol area so that we can get nifty options as i cannot get the option prices in the option oracle software pls do help me or pls upload a screen short how to enter indian stock symbols in the software pls frds
hope to hear soon

regards

Dear thesaint,

You can use yahoo symbols for stocks to enter in the symbol area of Option Oracle Software. However, there is no option for uploading these symbols in one go.

Regards

 

[bandlab2]

Trade initiated for Stretgy 1

Sell Call May 3400 at 212, Sell Put May 3400 at 181. Total Premium Collected = 393

So far Strategy1 hit profit 2 times, stoploss 1 time and Strategy2 hit profit 1 time and SL 2 times

 

[munde_77]

Trade initiated for Stretgy 1

Sell Call May 3400 at 212, Sell Put May 3400 at 181. Total Premium Collected = 393

So far Strategy1 hit profit 2 times, stoploss 1 time and Strategy2 hit profit 1 time and SL 2 times

Me 2 sold May call 3400 at 205 and sold May put 3400 at 190 total premium collected 395. Hope this series does hit target

 

[munde_77]

Dear thesaint,

You can use yahoo symbols for stocks to enter in the symbol area of Option Oracle Software. However, there is no option for uploading these symbols in one go.

Regards

First start the oracle software then click the option config (left dowside) then select dynamic server nse india 1 from online servers and select stock exchange selection then click save, after that enter first 3 letters of the nse stock on the top of left side in symbol press enter or click update. It is done

 

[metushar]

First start the oracle software then click the option config (left dowside) then select dynamic server nse india 1 from online servers and select stock exchange selection then click save, after that enter first 3 letters of the nse stock on the top of left side in symbol press enter or click update. It is done

Dear munde_77, linkon7

I do not get into servers listed in the oracle options software, I run on automatic configuration through reliance data card.

I am attaching a screen shot of what i see when i click on config and drill down on servers.

see if u can advice something on this.