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If today Nifty moves further 2% from here, will it be UP or DOWN?


  • Total voters
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Hi Amit :)

Where r u.. Pls come back :)

Every one here knows you are brilliant and also that even the
most successful person on this planet faced many hard times to
achieve his goals.

We are all with you and in the same boat.. Kindly don't be silent..
and continue..

Regards
Divnain :)

Ps : Today is 18.07.2012 and as per rules / Experience we should
move to August series.
 
19.07.2012, Thursday

Good Morning Friends :)

NS = 5216.30 (18.07.2012 closing price)

The base price for Today is = 44 -4= 40.

Regards
Divnain

PS : Amit pls let us know the base price for August Series.
 

jamit_05

Well-Known Member
Hello,

It is expiry week and volatility is expected to be slow. VIX is slashed. It is best for VIX to be on an uptick to have a winning edge to make buys.

While VIX is on the lower side, I have been considering shorting option pairs, in which having a reliable defense becomes very important. While I wait for VIX to get back into shape, I hope to be able to post my short pair trades while buying looks harsh.
 

jamit_05

Well-Known Member
20.07.2012, Friday

Good Morning Friends :)

NS = 5242.70 (19.07.2012 closing price)

The base price for Today is = 40 -4= 36.

Kindly forgive me friends, I will not be posting base price from Monday onwards till Amit returns. :(

Regards
Divnain
Even if we were buying we do not consider this base price, but of the next month. Buying takes a bad beating in the last two weeks.
 

jamit_05

Well-Known Member
Shorting a pair of 50 OTM and receive credit. I hope to keep a big portion of this credit. How will that be done? By use of futures. The general way is going to be this.

Each time the price start to go above any of the strike I will purchase or short with futures as cover. I will hold the futures till the stop is hit or a reverse entry is given. I do not expect much income from the futures as it is not the idea.

The only Problem area is see is Huge insane gaps.

Will start it now... and will continue all month. I do not know about the rest, but Gurmy will sure thank this post :). Hari I hope you are still around. :)
 

jamit_05

Well-Known Member
Details of trade:

Shorted 50 OTM pairs:

5200 CE 96.35
5100 PE 79.35

Credit 175.70 - 3.70 expense = 172 credit.

Thus at expiry our breakeven point on the:

upside is
5200+172 = 5372;
downside is
5100-172 = 4938;


Will look to cover with equal number of future lots.
 
Last edited:

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