SH's MArket Correction Prediction Strategy
- Thread starter Tradewithhunter
- Start date
Let me try answering this....
the question was related to a straddle with stike price of 5700. In this we buy both CE and PE of same strike price with the expectation that Nifty may move in either direction ...but we are not sure which direction.
So once nifty has moved in one of the directions we evaluate whether we should close the loosing position (if nifty will continue in the direction and not reverse) or we book profit in the winning position and wait for nifty to reverse (if the trend is not strong or may reverse) so that our loosing leg will also turn into profit or break even.
Hope this helps....
the question was related to a straddle with stike price of 5700. In this we buy both CE and PE of same strike price with the expectation that Nifty may move in either direction ...but we are not sure which direction.
So once nifty has moved in one of the directions we evaluate whether we should close the loosing position (if nifty will continue in the direction and not reverse) or we book profit in the winning position and wait for nifty to reverse (if the trend is not strong or may reverse) so that our loosing leg will also turn into profit or break even.
Hope this helps....
Hai Rishi001,
Thanks. Underdstood ur point but my question is why he took position in only 5700ce in morning and at afternoon after closing 5700ce position he opened 5700pe position.
Rate of 5700pe was 110 (aprox) in the morning & 190 at close.
I also wanted to ask can i buy 5700pe tomorrow morning as SH said to buy 5700pe if nifty closes below 100ema.
Thanks. Underdstood ur point but my question is why he took position in only 5700ce in morning and at afternoon after closing 5700ce position he opened 5700pe position.
Rate of 5700pe was 110 (aprox) in the morning & 190 at close.
I also wanted to ask can i buy 5700pe tomorrow morning as SH said to buy 5700pe if nifty closes below 100ema.
(1) SH expected mkt to take support at 100ema, so he bought CE in the morning. When NF is going to close below 100ema near end-of-day, that expectation of support is to be reversed ==> CE to be squared off and PE to be bought.
(2) This is traders's own decision. As per SH, trades to be initiated near end-of-day of a condition being fulfilled.
I had 5700 straddle from yesterday when it touched 100EMA. Today, all calls were squared off at different times of the day and have only puts now. Already got some points as profit.
The question is how long should we hold the puts? When we calculate the returns, 25-50% of what figure should we consider? Thanks for any inputs.
The question is how long should we hold the puts? When we calculate the returns, 25-50% of what figure should we consider? Thanks for any inputs.
@SH
Bringin to your attention .. again ...
Bringin to your attention .. again ...
On Nifty SPOT
EMA 15 = 5694 (on 30 mins TF).
Been 15 candles of 30 mins since price has not touched 15EMA.
What say SH .. u think it would go up or EMA would come down or a middle path .. minor up with EMA coming down to meet the up candle .. .. or still some more candles before the smooooccchhhhhh ...
EMA 15 = 5694 (on 30 mins TF).
Been 15 candles of 30 mins since price has not touched 15EMA.
What say SH .. u think it would go up or EMA would come down or a middle path .. minor up with EMA coming down to meet the up candle .. .. or still some more candles before the smooooccchhhhhh ...
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