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[jamit_05]

600 pe and 600 ce

Right on... hence... at end of the trades, percentage profit or loss will get an even chance to battle themselves out. Simple...

Otherwise, what normally happens is that after making a loss the trader, in his shudder, decides to reduce PS to take a lesser loss or whatever.... then if the trade becomes a winner the result is still negative since his winning trade was on a smaller quantity than the losing one... a negative edge. by keeping PS constant we even the plane.

Same with the bias... we want to even that plane too... do not want too much bias.

 

[jamit_05]

One important scenario I need to bring to notice... The Bias.

When Nifty Spot Price is equidistant from the Strike Prices... the individual values of CE and PE differ by almost 50%... that is too much a bias... its almost like buying PEs alone. Reason why I took quick profit on the last trade.

Therefore, I think we may have to start trading the July series where the difference is less than 15%... check out 49/52 pair which are 150 OTM.

 

[jamit_05]

I think we have a trade cooking...

Could somebody provide the Cost of:

JULY series

5300 CE
5000 PE

for last week Friday EOD.

 

[gurmy.]

july 5300ce 90

july 5000pe 95


as on last friday

 

[jamit_05]

New trade till Tuesday EOD.

july 5300ce 90

july 5000pe 95


as on last friday

So the 150 OTM cost was 185 on Friday... now it is 150; A Rs.35 fall. 20%; That means options, all across the board, have corrected. Not just the current month.

That is a pretty good correction. If we bought now, and held till Tuesday EOD it will only do us good...

 

[jamit_05]

It is EOD already... will postpone purchase to tomorrow... currently the cost is 149=

 

[gurmy.]

Re: New trade till Tuesday EOD.

dear jamit

i think 49/52 pair will be more suitable

the pair cost was 206 on friday and currently trading at 148

thanks

 

[augubhai]

Right on... hence... at end of the trades, percentage profit or loss will get an even chance to battle themselves out. Simple...

Otherwise, what normally happens is that after making a loss the trader, in his shudder, decides to reduce PS to take a lesser loss or whatever.... then if the trade becomes a winner the result is still negative since his winning trade was on a smaller quantity than the losing one... a negative edge. by keeping PS constant we even the plane.

Same with the bias... we want to even that plane too... do not want too much bias.

Satya vachan... satya vachan :thumb:

 

[jamit_05]

Re: New trade till Tuesday EOD.

dear jamit

i think 49/52 pair will be more suitable

the pair cost was 206 on friday and currently trading at 148

thanks

Lets lock it then... we will purchase 49/52.... but tomorrow... before 11.00 A.m.

 

[gurmy.]

Re: New trade till Tuesday EOD.

it is locked,,,,,,

we will go for it tomorrow

happy trading