Paper Trading Nifty Straddles

[sachuc]

what is the margin requirement for writing straddle and how?
and for writing options is margin calculated by multiplying nos of shares(lotsize50 in nifty)*strike price ?or a 20 percent of this value as in case of futures ie 20%
of the previous multiplication
sach

 

[bandlab2]

what is the margin requirement for writing straddle and how?
and for writing options is margin calculated by multiplying nos of shares(lotsize50 in nifty)*strike price ?or a 20 percent of this value as in case of futures ie 20%
of the previous multiplication
sach

pl check with yr broker. everyon has a diferent method. my boke taets it like slling a future, which means 15% margin for nifty

 

[ag_fx]

Hi Bandlab,

Till when do you plan to keep your positions open?As in , is there any time based Sqr OFF?Lets say we inititate it 5 weeks before expiry and may cover 2 weeks before expiry or anything on those lines?
ALso, kindly illustrate the reason for selecting 5 week to expiry options.

Thnks
Ankit

 

[bandlab2]

Update on EOD Jan 29

Strategy 1:

Sold Straddle for 327 premium. Right now total premium = 287. Profit = 40

Strategy 2:

Not Initiated yet

 

[bandlab2]

Hi Bandlab,

Till when do you plan to keep your positions open?As in , is there any time based Sqr OFF?Lets say we inititate it 5 weeks before expiry and may cover 2 weeks before expiry or anything on those lines?
ALso, kindly illustrate the reason for selecting 5 week to expiry options.

Thnks
Ankit

ours is not time based. its stoploss 50% or target 50%.

reason for selecting 5 weeks is we will have next series options traded in good volumes and also with more premium due to time factor. you can try 6 weeks too !!! but the longer the time more risky your trades

 

[bandlab2]

Update on EOD Jan 30

Strategy 1:

Sold Straddle for 327 premium. Right now total premium = 305. Profit = 22

Strategy 2:

Not Initiated yet

 

[bandlab2]

I am new to Options.

I know that we buy "CALL" or "PUT"
or sell them.

What is Straddle. Can ayone explain me.

Your suggestions will be helpfull.

Thanks,
Sohan (http://intraday.weebly.com)

hi sohan,

Straddle : Call/Put of same strike price

If you buy nifty 2800 call and buy 2800 put, then we call it buy stradle. pl google for more info and examples. we o this when we know maket is going to move up/down but ont know the direction. example : you can buy stradle just before earnings of a stock or a policy decision like rate cut, election results etc

 

[ag_fx]

Update on EOD Jan 30

Strategy 1:

Sold Straddle for 327 premium. Right now total premium = 305. Profit = 22

Strategy 2:

Not Initiated yet

EOD 3rd Feb

The Straddle that you sold for 327 Premium is right now at a total premium of 292.5. Profit=29.5

 

[Tanoj]

What is the best strategi for tomorrow's (04th Feb 09) option ?

Kindly advice.

Thanks.

 

[Tanoj]

I am new trader in Option segment.

Currently holding the contract OPT-NIFTY-26-Mar-2009-2600-PE @ 124 .

Kindly simplify the wordings and advice.

Thanks.