Another Options Trading Diary with the lowest capital of 4500/- only.

[NiftyFantasy]

HI Abhi

To write means to sell and if I sell otm call 6100 in a down trending swing market when market is at 5750, where would be the problem ? Yes, I best pick a resistance point in that down trend to sell the call. ( Ok. cleared this )



HAVE A SUCCESSFUL TRADING CAREER

DanPickUp

yeah right....


regards
Abhi

 

[nac]

Dan trading options for a long time.

He is trying to show us a different view or the view which we are not aware of...

Let see what's we gonna get... Till then, we can check the strategy he just posted (writing 6100 call and buying put as hedge)...

 

[NiftyFantasy]

Dan trading options for a long time.

He is trying to show us a different view or the view which we are not aware of...

Let see what's we gonna get... Till then, we can check the strategy he just posted (writing 6100 call and buying put as hedge)...

This is not a hedged position... sharp upmove will kill...
I think the risk reward is not favourable.. in this trade... A huge upmove is very likely any time.... bcz market is in heavly oversold zone....

I am not the master but I will prefer to buy 5900 call & 5400 put...

Lets see what happen...

 

[DanPickUp]

Dan trading options for a long time.

He is trying to show us a different view or the view which we are not aware of...

Let see what's we gonna get... Till then, we can check the strategy he just posted (writing 6100 call and buying put as hedge)...

Hi nac

Sorry for the mistake.

It is not buying the put, it is buying the call in the next month. There was again a crossover with the posts, when I was overwriting the post with that comments. You may read it again to see the details.

DanPickUp

 

[nac]

Just took Nov data and checked....

I assumed I took position on 28 oct. short 6100CE @ 113 and long 6100PE @ 145. It ended in profit of 413 points. But when market went up before falling. On 5th nov, position was @ -193 (should have enough amount to support MTM)

What would be the case if market went up and closed.???

Edit: Just saw your post says that you edited...

 

[DanPickUp]

This is not a hedged position... sharp upmove will kill...
I think the risk reward is not favourable.. in this trade... A huge upmove is very likely any time.... bcz market is in heavly oversold zone....

I am not the master but I will prefer to buy 5900 call & 5400 put...

Lets see what happen...

Hi

This is not a hedge. Right, because we are two times in the same direction.

Short call and long put. This thread is very fast and I am a slow poster and writer. Many times I have to edit my post, as English is not my mother tongue. I then see the mistakes, edit it and there are already a few more post made. So, sorry for this lack.

It is not a put, it is a call out of the month as I edited during your posting.

DanPickUp

 

[NiftyFantasy]

Hi

This is not a hedge. Right, because we are two times in the same direction.

Short call and long put. This thread is very fast and I am a slow poster and writer. Many times I have to edit my post, as English is not my mother tongue. I then see the mistakes, edit it and there are already a few more post made. So, sorry for this lack.

It is not a put, it is a call out of the month as I edited during your posting.

DanPickUp

I think this is called calendar spread or so... am I right????

rgds
Abhi

 

[kalyanisalem]

HI nac ,

Dan is trying to say like this i think short 6100 CE (Nov series) and buy a call i think
6200 or 6300 call in dec series.. can u check now how much max MTM we required for ths case...

Just took Nov data and checked....

I assumed I took position on 28 oct. short 6100CE @ 113 and long 6100PE @ 145. It ended in profit of 413 points. But when market went up before falling. On 5th nov, position was @ -193 (should have enough amount to support MTM)

What would be the case if market went up and closed.???

Edit: Just saw your post says that you edited...

 

[nac]

^

Dan...

Got your point...

Short call of 1st month contract and Long call of 2nd month contract (or far month contract). If market falls, we stand to pocket the premium we received and the long call loses its value slowly as expiry is far.

 

[kalyanisalem]

Nac and Dan


can u guys explain what are all the possibilities tat can happen wat would be our Position stand at the time of expiry

^

Dan...

Got your point...

Short call of 1st month contract and Long call of 2nd month contract (or far month contract). If market falls, we stand to pocket the premium we received and the long call loses its value slowly as expiry is far.