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

[adityasaraf007]

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

For data of Daily TimeFrame, you would need to update latest data whenever you wish.... However, if you wish to view an updated chart on a daily basis, you would be required to update it daily....

A bit cumbersome since you won't even trade in this market... Otherwise, a simple process, takes about 1min to update...

 

[DanPickUp]

This thread may could be of interest for some of you

http://www.traderji.com/options/704...rgin-spreads-than-naked-short.html#post690979

as margins are also a very important criteria for choosing any option strategy.

Dear Laksh has brought up the fifth criteria: Margins or account size.

 

[Sunny1]

Todays position ( a snap from OO

http://i50.tinypic.com/2ut0s90.jpg

 

[Sunny1]

Having problem in option oracle .it does not updates option prices anymore.

LTP of my position...

5100 CE : 187
5100 PE : 39

 

[adityasaraf007]

Nifty - August Contract - Weekend Update:

Looks like I completely misread the OI data for this series.... Right now, our Option Portfolio is running at a loss of 3.30%..... Our max loss range is 5200 and above at expiry.... Right now, Nifty Future is at 5240.... Let's see.....

OptionsOracle is not working.... So, here is a snapshot from Spreadsheet....

 

[Sunny1]

Having problem in option oracle .it does not updates option prices anymore.

LTP of my position...

5100 CE : 187
5100 PE : 39

Closed one Leg 5100 ce @ 264.5

5100 PE CMP 15

 

[Sunny1]

Closed one Leg 5100 ce @ 264.5

5100 PE CMP 15

Return I got on this were bit below my expectation.

when intrinsic value increases ....extrinsic value decrease ...well I expected this.. but what I did not expected is that....premium reduced well above 80%..

5100 ce did not reached 300 rs...even after 350 points move in nifty..

I need to fine tune this strategy...

How about buy strangle instead straddle...? my buying cost wud be lower..and i can expect same percentage of return..

My other leg still open ...5100 PE at 12.4 rs...

 

[DanPickUp]

Dear Sunny

In the link you provided (http://www.nseindia.com/ChartApp/install/charts/mainpage.jsp) I would say that your market is on a point it has to decide either to break out on the up side or to stay in the range and move down again. (08.08.2012)

Here some thoughts:

- Are there any fundamentals which could come up in a short time or just any maybe news which could give a hint about the possible direction of the market?

- Option expiry day: When? If soon, check the put call ratio in your market. This could give a hint about the direction.

- Check the opening tomorrow. If it opens above the previous high, that could be a strong sing that market will move up. In that case sell the put and go long or implement a strangle (as mentioned by you) by buying the new possible range (old resistance will now be support and new resistance on the way up). You can do that in a more directional approach by buying otm calls and atm puts or vice versa.

- If market plunges, stay with the put and may even add more puts. If doing so, you may consider next months series, depending on expiry day. If expiry is near, the next month series will have the advantage of having a bit more time decay left, in case market moves only slowly.

- If you go long with more puts, have a clear target in mind at which point you reduce your amount of puts to secure the first money. You know: MM and position sizing.

Good trading

DanPickUp

 

[Sunny1]

yupp....market is on a point of decision ...
Possible ...up...
Here few short news I can expect ..
as chindambram has become finance minister of our country ...few changes are expected ..

RBI might cut CRR and other interest rate ....which would give market a big boost ...
FDI in retail sector ....mighty get cleared

our option is expiry is every last Thursday of the month ...this month expiry is 30 aug..

The current strategy which I applied is based monthly range wise...that is buying straddle/strangle next day of expiry ....on opening ...

You can do that in a more directional approach by buying otm calls and atm puts or vice versa.

mmm ...didnt thought about ....I will look into ..

yes ...tomorrow market opening ...have significant important ...

 

[columbus]

Markets tend will be very volatile since Parliament session is in progress.
Decisions taken by government will have a bearing on markets.