Paper Trading Nifty Straddles

[pasha]

Since you hedged the downside, why not hedge the upper too. Feb 2900 call is only 2.50, well worth the piece of mind.

 

[dumdum20008]

Since you hedged the downside, why not hedge the upper too. Feb 2900 call is only 2.50, well worth the piece of mind.

I can withstand a morning with 200 point gap up opening,
but i cant and dont want to be in trouble with gap down opening of 200 points.

 

[uasish]

startegey 1 : target achieved. total premium now 148, profit : 179 points !!!

Gr8,so this strategy is Mkt tested for 1 month now,plz continue.

 

[bandlab2]

Strategy 2: Stoploss hit !!! we are out from this. 50% is our SL

 

[hari123]

normal investor should never trade in options as one is lured to low cost out of money options which lose value with time and go waste.option writers have an overedge and smart investors use options as a hedging tool only.however knowledge of options is a must as to know the direction of market where pemiums become costly and old saying is true sasta rove bar bar.

 

[munde_77]

we have initiated our strategy for march series. sold 2700 call and 2700 put for total premium of 294

oK. me 2 bandlabji

 

[munde_77]

i took yesteray at close. its around 2750. i prefered lower range as the bias is negative for the market. 2600 is more possible than 3000.

but it doesnt matter. you can try with 2800 as well

After selling . what should we do , just watch and stay away from the market.

 

[hari123]

Re: Paper Traing Nifty Straddles

strategy1 will be dangerous if there is wild move in market as expected due to short covering.short staddle is only for range bound market pl have a relook and suggest again. thanks.

 

[munde_77]

Re: Paper Traing Nifty Straddles

strategy1 will be dangerous if there is wild move in market as expected due to short covering.short staddle is only for range bound market pl have a relook and suggest again. thanks.

That is why bandlabji has kept 50% as stop loss for unforeseen movements or circumstances

 

[nareshch]

Re: Paper Traing Nifty Straddles

strategy1 will be dangerous if there is wild move in market as expected due to short covering.short staddle is only for range bound market pl have a relook and suggest again. thanks.

Do you think the short straddles will be in Loss only due to Short covering ( Seems you are Still bullish ) . It will be a loss if there is bloodbath in Markets also .
This strategy do not want the market to move either way .

You are correct that this is for range bound markets . Do you think we are in strong trending markets all the time . a BIG NO .

check the Charts and watch closely , you will see 9 out of 12 months in a year as rangebound.

So , 9 months in an year you may earn from Short straddles and stoplosses will save you for the rest 3 months

Disclaimer: Past performance is not indicative of future performance and I do not hold any responsibility