Earn 180% profit through nifty strategy

How would u rate this idea?

  • Total voters
    62
R

rajgiri21

New Member
#21
#21
gunsho said:
The idea is good Giri :). Not doubt about it. And there will be months where we market will have less whipsaws. To reduce that, we can pick this strike price when it is bouncing back from a good resistance or up from support. 100 points is less or more, depends on the time frame we are planning to watch/trade. I am sure we will learn something from this thread.

Humble request to change the title, if you are ok. Cause that is not the main goal for any of us I believe :).
Click to expand...
Yeah Gunsho tat seems to be gud idea!! :) and i have learnt alot from this thread!! Thanks!!! And btw yeah i made tat title to attract ppls opinion!! But it seems i cant change the title.. is it so, then how?
 
DanPickUp

DanPickUp

Well-Known Member
#22
#22
rajgiri21 said:
Dear Dan,

Thanks!!! Yeah if i sell a put i wil be getting the premium of tat as well!!! But again does tat increase my risk?? coz as it looks my call n put will give me the total time premium of both the options!! But why would i need a nifty future then wont i make loss in that or is tat covered??

Sorry if am found naive, am a bit new to these hedging strategy n all!!
Click to expand...
Works in sideways market and is out of question in trendy markets.
 
linkon7

linkon7

Well-Known Member
#30
#30
rajgiri21 said:
Here goes my thought:

Step 1: Buy Nifty futures for the near month say now Nifty 31Aug 2012 @ 5265

Step 2: Sell "in the money" option say 5200CE 31Aug2012 @ 165

Thats it!!! Whenever market falls below 5200 sell nifty and once it comes back to 5200 buy it!!
Click to expand...
Your intention is to exit nifty below ur strike price... and buy it back when it climbs above it.

I would rather Initiate a Naked 5200 put short.

When I initiate the naked put short, my view would be that NF will take support above 5215, the low of the day, when we gap-ed up and extended the whole EOD trading range upwards. Everyday, the market dynamics change and depending on my current view, my action point can be to

short nf below 5200 and make it a covered put..
or
buy 2x 5100 put and make it a ratio spread...
or
buy 5300 put and make it a bear spread...

The potential profit /loss curve of your covered call (nf long + 5200 call short) is exactly the same as my naked 5200 put short...! Difference is in the variety of action points.

Trading options is a whole different ball game. There has to be room to alter the delta of your positions and you have to cater to all what if scenario...
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
J Does Forex add to your earning? General Trading & Investing Chat 1
L Help me learn AFL AmiBroker 1
D Shared Learning: Swing Trading Wisdom for the Indian Market Swing Trading 0
S Earn 37% or more ROI day trading. Words of Wisdom 0
bunti_k23 Want to learn amibroker AFL coding, ready to pay. General Trading & Investing Chat 0

Similar threads