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[divnain]

the 52/54 pair has now corrected to 97.
quite a sharp correction.

There may be times when we have to doubt ourselves.. these may be one of those times. To sail through these times there is only one solution.. Have faith on ourself, our system,our strategy and we will sail through this...

Regards
Divnain

One Truth : I am also in doubt Amit kindly help... recheck the base price today it was 113... Our entry is at 110, 105, 103 levels and the same is now 97.

 

[healthraj]

This month it might be a typical F&O calendar month.

When I say typical I mean
Week 1 - Non-trending - Open positions are being made - Not good for Options Trading
Week 2 - Could be trending - Fight between Bulls and Bear - Might be good for Options
Week 3 - Could be trending - Fight between Bulls and Bear - Might be good for Options
Week 4 - Non-Trending - Postions are being closed - Not good for Options Trading

So normally when the market is NOT-TRENDING avoid the Strangle Options strategy.
In NON-TRENDING days/week actually you can for strategies to eat premiums.

See my diary for more information on Trending Vs Non-Trending trading in Futures.
http://www.traderji.com/trading-diary/69299-raj-trading-diary-15.html

 

[ashish2010]

Nice thread guys!!!!!!!!!

 

[veeemkay]

There may be times when we have to doubt ourselves.. these may be one of those times. To sail through these times there is only one solution.. Have faith on ourself, our system,our strategy and we will sail through this...

Regards
Divnain

One Truth : I am also in doubt Amit kindly help... recheck the base price today it was 113... Our entry is at 110, 105, 103 levels and the same is now 97.

The answer to this might be that even though you buy put and call if not balanced properly there will be some delta of the complete position. If the underlying moves opposite to what your net delta is you will appear to loose money faster than you should.

My suggestion is if you are really interested in options trading search about delta... And read about it. Slowly alsoread about theta and vega. You can still trade on simple methods like the one Amit trades on. But what will help you to keep faith is if you understand why exactly you made money and why exactly you lost money.

All the Best.

VK

 

[divnain]

04.07.2012, Wednesday

Good Morning Friends

NS = 5287.95 (03.07.2012 closing price)

The base price for Today is = 113 -4 = 109

 

[jamit_05]

.
.
.
.
Regards
Divnain

One Truth : I am also in doubt Amit kindly help... recheck the base price today it was 113... Our entry is at 110, 105, 103 levels and the same is now 97.

Each week gives a 100 point move; that is a fact. This week's move is due. Buying at the right price before the move comes is what we are trying to do. Yes, Divnain we do need to reduce the base. We have not been able to nail it this week. This trade will give a decent loss.

Let us use the current value of Rs.100 as the base for further calculations. It should be accurate since the market has shown the value for most of the day.

Our entry has seen a Rs.13 fall since after two days NS is back at where it started.

 

[jamit_05]

<<<<<<<<<<>>>>>>>>>>>>

 

[jamit_05]

This month it might be a typical F&O calendar month.

When I say typical I mean
Week 1 - Non-trending - Open positions are being made - Not good for Options Trading
Week 2 - Could be trending - Fight between Bulls and Bear - Might be good for Options
Week 3 - Could be trending - Fight between Bulls and Bear - Might be good for Options
Week 4 - Non-Trending - Postions are being closed - Not good for Options Trading

So normally when the market is NOT-TRENDING avoid the Strangle Options strategy.
In NON-TRENDING days/week actually you can for strategies to eat premiums.

See my diary for more information on Trending Vs Non-Trending trading in Futures.
http://www.traderji.com/trading-diary/69299-raj-trading-diary-15.html

Hello,

In the last two weeks, especially the last week, options premiums get battered. Best to sell OTM pairs. Therefore, it follows that we have only the first two weeks to buy.

Last week was trending enough. We made 9% in one simple BTST trade. The returns were watered down by a failed optimism about a Trending Friday.

Now, it is the First week. It too is expected to trend. Lets see.

 

[emil16]

Each week gives a 100 point move; that is a fact. This week's move is due. Buying at the right price before the move comes is what we are trying to do. Yes, Divnain we do need to reduce the base. We have not been able to nail it this week. This trade will give a decent loss.

Let us use the current value of Rs.100 as the base for further calculations. It should be accurate since the market has shown the value for most of the day.

Our entry has seen a Rs.13 fall since after two days NS is back at where it started.

I still believe this pair will do wonders and worth the wait. Market is expecting some kind of Negative News for a big sell off. EU summit news will fade away and we started getting bad economic data news from the globle and this will continue. Soon this will take the driver seat and take the market along with it. This is my opinion. Your comments pls.

 

[jamit_05]

The answer to this might be that even though you buy put and call if not balanced properly there will be some delta of the complete position. If the underlying moves opposite to what your net delta is you will appear to loose money faster than you should.

My suggestion is if you are really interested in options trading search about delta... And read about it. Slowly alsoread about theta and vega. You can still trade on simple methods like the one Amit trades on. But what will help you to keep faith is if you understand why exactly you made money and why exactly you lost money.

All the Best.

VK

Hello VK,

I am really glad that folks like yourself, Divnain, Gurmy, ravinder are coming up and giving supportive or critical suggestions. It will have only one result. The method will improve.

Early on, I had realized that balancing the Delta is the only way to have a neutral trade to start with. Therefore, before taking each trade I buy equidistant strike prices and make sure the two prices are near same. Moreover, we look to buy near the "base" as a result any possibility of delta being accentuated in our purchase, for the pair or the individual leg, is completely removed.

The calculation of the base will have to be more stringent. Have suggested the revised value of base as Rs.100;