What are the criterias to choose any kind of option strategy?

[Sunny1]

Dan ,

I didnt see your post yesterday....

Next Step , yes I have to wait for nifty to move 250 points on either side....which I expect it to do soon..

Screen shot from market ? As of now market is closed so no price quotes are coming....only ltp...

Yes its possible for me update and post daily ...But few terms I didnt understand..

Time Frame one bar ?

which screen shot of OO you want? a graph? or position window...anyway I am posting one shot ...
http://i46.tinypic.com/352gegi.jpg

 

[Sunny1]

@PTT

Maybe you are looking for something like this....

It has the data of Nifty on Contract Basis.... (The data is actually of Spot).... Gives you an idea about cycle, range, SD, Variance..... Would surely help in analysis....

Hi Aditya ,

Do you have such data for stock also ?

If you have it then I humbly request it to provide me. Need to study something

 

[DanPickUp]

Dear Sunny1

Most simple way to follow your market would be to have a link which shows a nice chart from it. Any quick idea other wise I will Google. Are you using any charting software like Amibroker or Metastock?

OO pictures are fine. If you could post that some times, that would give a visual idea of the situation. Also called: Option trading visually, what I think is best when it comes to strategy trading.

By the way: Are you able to short positions or do you prefer to avoid it? Why I ask? It can make very well sense to trade a leg to increase the profit and that would mean being able to go long and short. If short is not possible, then I will try to give ideas for long trades. You may want to test that beside just waiting of what market is doing. Let's see how it goes

DanPickUp

 

[Sunny1]

Ok ...I was using chart which appear in my trading terminal...if you want that screen shot ..i can post it... i view 15 min chart for intraday.

or you can view nifty chart in google finance or yahoo finance.

Nope...no shorting in option possible as of now for me ....


Link for chart: http://www.nseindia.com/ChartApp/install/charts/mainpage.jsp

 

[adityasaraf007]

Hi Aditya ,

Do you have such data for stock also ?

If you have it then I humbly request it to provide me. Need to study something

@Sunny:
No Sunny.... Don't have it for stocks.... That file was made manually by me.... and it has been immensely useful....

Since, you are trying your hand at Strangles/Straddles at this point of time.... make complete use of the information presented in that file.....

@Dan Sir:
For Nifty, here is the eSignal link for charts:

• Nifty Spot
• Nifty Future

If you want these data in your charting software, let me know..... You would be able to source the data from GoogleFinance... However, it would be a manual process...

 

[Laksh]

Now a question from my side: Doe's any one of you take strategy decision through chart analyzing? What do I mean with that? Analyzing bigger time frames like one week or a few days, pointing out S and R and using this information to decide what strategy will be implemented?

Good trading

DanPickUp[/QUOTE]

I have tried to trade option on the basis of chart. Not the complex strategies. Simple naked call and put buy and vertical spreads. In naked options I have found it very difficult to decide exit either with profit or with loss. Spreads take too much time to give profit unless there is a very strong move. Here also the deciding exit has been a problem. Tried to find calender spreads a couple of times; but not very successful. One of the problems has been that I am a trader with a small capital. So did not have the courage to go on experimenting. The other problem is that one cannot really back test option strategies with past price data with MS (the charting s/w I use); nor do I know of any other s/w which can do the same.

Laksh

 

[DanPickUp]

If you want these data in your charting software, let me know..... You would be able to source the data from GoogleFinance... However, it would be a manual process...

Hi and thanks to both of you for the links.

Dear Aditya, I use Metastock and I have only subscribed to CME data as this is my market. I am wondering how I could implement any longer time frame data in it. I am clear about doing it for one day or even one week. But doing it for a much longer time period in a simple way? No idea as I guess I would have to edit day by day. If you have any other idea, please let me know.

DanPickUp

 

[DanPickUp]

Dear Laksh

Thanks to post on the subject.

I have tried to trade option on the basis of chart. Not the complex strategies. Simple naked call and put buy and vertical spreads.

What time frame did you use to do so? and on what kind of analyzes or ideas did you build up your mind to take the trade? Did you at least use some kind of support and resistance system?

In naked options I have found it very difficult to decide exit either with profit or with loss.

What was the problem? Did you have a simple trading plan with some kind of stop loss and exit targets or follow up thoughts? By the way: Did you read that post: http://www.traderji.com/options/66266-option-trading-danpickup-14.html#post703549 I know it is a bit complex, but that is the way live trading with option strategies has teached me.

Spreads take too much time to give profit unless there is a very strong move.

As there are various kind of spread trading: each one of this different type of spread trading has to be learned separately. I do not know much people which are very flexible in trading different spreads at any time. Hope you had once a look in AW10 thread about vertical spread trading.

Here also the deciding exit has been a problem. Tried to find calender spreads a couple of times; but not very successful.

What was the problem here in detail?

One of the problems has been that I am trader with a small capital. So did not have the courage to go on experimenting.

Very well done:clapping:

The other problem is that one cannot really back test option strategies with past price data with MS (the charting s/w I use); nor do I know of any other s/w which can do the same.

Yeap, that is what I suppose for most of Indias option traders. Option Oracle. Can you do back testing with that software? I use OpVue and with that software you can do what ever. They even have a tool which is called: Trade Finder.

DanPickUp

 

[Laksh]

Dan,
I have not traded option for quite sometime now as the losses were rather large for my account. So I am not able to answer your questions very specifically. They were mostly directional trades based on the trend on intermediate level moving averages 13 crossing 35 or 5 crossing 13 etc on daily time frame. I have gone through the initial posts of AW10's thread but did not have the courage to implement the trades. In trying out calendar spread I did not find an option with the same strike in the far moth when I wanted to implement it. But I have retained an interest in learning option trading with the hope that someday I'll be able to learn some kind of option strategy in future which will suit my capital size and my mentality.

Laksh

 

[DanPickUp]

Ok.

If some of my post's give or will be just a little help to that target, then I think I did some good.

Have a nice weekend

DanPickUp