Trade with options data
- Thread starter kiranjakka
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Dear Kiranjakka
Some times I read in your thread as it is about options. Have seen the above post and recognized your effort to trade delta neutral. Here some info's to think about delta neutral trading (By P. Forchone):
http://i47.tinypic.com/2rggnjb.png
You may play around a bit with other ideas which are not posted any where. Here just one way which can make good money in sideways markets. You may want to test it in your home market:
Buy a few very cheap otm options in the direction the market moves and on the other side buy just one option which has the same value as all the bunch of otm options on the other side. That is also Delta neutral, but it is implemented with a more directional approach.
Market now moves in your direction Here you sell the expensive options and with that money you buy cheap otm option on the other side. And so on. Be careful with the theta as you will have quit a few options in your portfolio which such kind of trading. It may works in your market, at least it doe's in my markets.
Further all the best with your successful thread.
Good trading
DanPickUp
Some times I read in your thread as it is about options. Have seen the above post and recognized your effort to trade delta neutral. Here some info's to think about delta neutral trading (By P. Forchone):
http://i47.tinypic.com/2rggnjb.png
You may play around a bit with other ideas which are not posted any where. Here just one way which can make good money in sideways markets. You may want to test it in your home market:
Buy a few very cheap otm options in the direction the market moves and on the other side buy just one option which has the same value as all the bunch of otm options on the other side. That is also Delta neutral, but it is implemented with a more directional approach.
Market now moves in your direction Here you sell the expensive options and with that money you buy cheap otm option on the other side. And so on. Be careful with the theta as you will have quit a few options in your portfolio which such kind of trading. It may works in your market, at least it doe's in my markets.
Further all the best with your successful thread.
Good trading
DanPickUp
Hi Kiran,
-- Heavy +ve change in OI of calls indicates heavy resistance at that strike
price (5100) means call writing.
-- Heavy -ve change in OI of puts indicates heavy support in one level up strike
price.
1.Is it necessary that we must have above two conditions simultaneously for nifty to go down? I feel, yes b'coz that will confirm the change of bias from put writing to call writing. Am i right?
2. In what condition we will say that nifty may close below 5100 levels by expiry?
-- Heavy +ve change in OI of calls indicates heavy resistance at that strike
price (5100) means call writing.
-- Heavy -ve change in OI of puts indicates heavy support in one level up strike
price.
1.Is it necessary that we must have above two conditions simultaneously for nifty to go down? I feel, yes b'coz that will confirm the change of bias from put writing to call writing. Am i right?
2. In what condition we will say that nifty may close below 5100 levels by expiry?
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