FUT Position Trading with option chain

[ayanarman007]

What is the back test result of at least last one year?

 

[mvkarthik]

A newbie query :
Does it make sense to SHORT :
CE8200 and PE 8200 at 260+85=Rs.345/- premium !? (The Mid point of HOI) or
CE8800 and PE 7600 at 20 + 10 = 30/- ( Added half the Difference of HOI levels of PE and CE ) or
CE8500 and PE 7900 at 95 + 30 = 125/- (Lvls of HOI)

before going to sell this pair ,one need to have little sense about the trend(up,down,sideways)
Nifty
12/06/15 low-7940,
22/05/15-high-8489
nifty right now in sideways ( range-8500 to 7900)its also the range of MAXOI

1.CE8200 and PE 8200 at 260+85=Rs.345/- premium !?
(selling a same strike is little bit risky) i only use selling same strike for day trading
especially 4th week
(selling same strike only good for day trade)
(selling same strike is risky for position trading )
---------------------------------------------------------
2,CE8800 and PE 7600 at 20 + 10 = 30/

the MAX profit one can get in this pair is 30rs-
Ex
for 2lot (2 lot CE,2 lot PE)one need around 60000rs MAX profit-1500rs
blocking 60000rs for 1500rs not worth
-----------------------------------------------------------
3,CE8500 and PE 7900 at 95 + 30 = 125/-
that's is good pair for position trading(that's also my choice for position trading with ST 160)
if market stay at this LV till Expiry,one will get the full premium

(its my view only)

 

[mvkarthik]

thank you.

Maxoi keeps changing. Is there a specific date that you consider as benchmark for deciding as levels? like start of new expiry date is when you will look at maxoi?

and, this can change when SBI reaches the 250/290 levels, then there could be new levels where maxoi is built up.

your thoughts please.

yes MAX OI keeps changing time to time,
http://www.traderji.com/options/98880-50-100-a-6.html#post1084355

see this post

SBIN-262 Time-10.14
MAX OI
CE270-1,570,000
PE250-1,019,000
(buy at 250 lv, sell at 270 lv)
(its my view only)

that time SBIN MAXOI was 270,250,now its 290,250
how some one use this for trading?

AT-10.14
MAX OI
CE270-1,570,000
PE250-1,019,000
MP-260

yesterday,sbin open at 263.35,around 10.05 low made-261.05,
10.14 sbin trading at 262.20,i get buy signal at 263.20 around 12PM

MAX OI Lv-270,250 MP-260
if i buy sbi at 263.20 ,my ST-260 target-270( i am risking 3points for 7 points profit)
now the MAX OI change 270,250 to 290 to 250

what is this indicating?
At 10.14 bears protecting the 270 LV
now its 290, so now bears let go the 270,and protecting 290 Lv
so now i change my target as 1target-270 2target-290
if the MAXOI lv change tomorrow i will change my view
(its my view only)
--------------------------
here, a real trade i done by use MAX OI, MAX CHOI and chart
link
http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-769.html#post1084093

http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-755.html#post1080298

 

[mvkarthik]

What is the back test result of at least last one year?

i dont have the back test result
here, a real trade i done by use MAX OI, MAX CHOI and chart,
link
http://www.traderji.com/trading-diar...ml#post1084093
http://www.traderji.com/trading-diary/88670-nifty-options-trading-raj-755.html#post1080298

all post at real time

 

[mohan.sic]

http://www.nseindia.com/live_market...-&segmentLink=17&symbolCount=2&segmentLink=17

In the option chain look for MAXOI CE PE
SBIN
MAX OI
CE 290 -1,936,000
PE 250 -1,147,000
midpoint-270

what this MAX OI PE CE,indicates
Bulls protecting 250 LV,
Bears protecting 290 LV,
(this will be the range for JULY Expiry,For sbin the range is 250 to 290)
so one can take a position at this levels
EX
buy sbin at 250 LV.
sell sbin at 290 LV
if one get a buy signal at 250LV in chart buy with ST, target -270,290
if one get a sell signal at 290LV in chart sell with ST,target -270,250

what is midpoint, and how to use this point ?
MP-midpoint ((MP=MAXOICE+MAXOIPE/2)290+250/2=270)
sbin MP-270
now sbin trading at 265.20
one can use this MP for opportunity
if one get a buy signal in chart at 270,buy with ST,target is-290
if one get a sell signal in chart at 270,sell with ST,target is-250
------------------------------------------------
brief of Technical words
LV- levels
PE-Put
CE-Call
OI-open interest
MAX OI- levels that have max value
CHOI- change in open interest
MAX CHOI-level that have max value
MP-midpoint ((MP=MAXOICE=MAXOIPE/2)290+250/2=270)
ST-stop loss
-----------------------------------------------------
(its my view only)
-------------------------

Karthik, You are giving bits of a trading strategy. When to buy / sell,target etc. Have you ever tested these things real time and what was the outcome. Profit/loss made with these rules at least on paper if not Real? Please don't come up with statements such as - these are my personal views or get out of my thread. Because any one could form a personal view and come up with an idea only when he had tested something for a brief period. Right? @ pls NOTE- this is not about the strategy.

 

[mvkarthik]

Karthik, You are giving bits of a trading strategy. When to buy / sell,target etc. Have you ever tested these things real time and what was the outcome. Profit/loss made with these rules at least on paper if not Real? Please don't come up with statements such as - these are my personal views or get out of my thread. Because any one could form a personal view and come up with an idea only when he had tested something for a brief period. Right? @ pls NOTE- this is not about the strategy.

Karthik, You are giving bits of a trading strategy?

no i give all ,(only MAXCHOI is missing i will explain in real time)
----------------------------------------------------
Have you ever tested these things real time and what was the outcome?

here, a real trade i done by use MAX OI, MAX CHOI and chart,
link
http://www.traderji.com/trading-diar...ml#post1084093
http://www.traderji.com/trading-diar...ml#post1080298

all post at real time
--------------------------------------------------------------
Because any one could form a personal view and come up with an idea only when he had tested something for a brief period. Right?

from 2012 jan i follow this strategy. it gives me good return,the outcome is good,

------------------------------------------------------------
Please don't come up with statements such as - these are my personal views or get out of my thread.

i start this thread for share my view,and gain more knowledge,form other trader,
u r always welcome and share your views on trading
--------------------------------------------------------
mohan i have question for you?
tel me my friend in the end, how one trader make profit in trading?

 

[mohan.sic]

Karthik, You are giving bits of a trading strategy?

no i give all ,(only MAXCHOI is missing i will explain in real time)
----------------------------------------------------
Have you ever tested these things real time and what was the outcome?

here, a real trade i done by use MAX OI, MAX CHOI and chart,
link
http://www.traderji.com/trading-diar...ml#post1084093
http://www.traderji.com/trading-diar...ml#post1080298

all post at real time
--------------------------------------------------------------
Because any one could form a personal view and come up with an idea only when he had tested something for a brief period. Right?

from 2012 jan i follow this strategy. it gives me good return,the outcome is good,

------------------------------------------------------------
Please don't come up with statements such as - these are my personal views or get out of my thread.

i start this thread for share my view,and gain more knowledge,form other trader,
u r always welcome and share your views on trading
--------------------------------------------------------
mohan i have question for you?
tel me my friend in the end, how one trader make profit in trading?

Reason why I asked is bcz my trading exp with that strategy is not good. One real trade example is not at all enough to believe in the strategy. But since you are confident please go ahead.

 

[mvkarthik]

Reason why I asked is bcz my trading exp with that strategy is not good. One real trade example is not at all enough to believe in the strategy. But since you are confident please go ahead.

warren buffett quotes,
Never invest in a business you can’t understand.that's also fit for trading strategies as well

 

[mohan.sic]

warren buffett quotes,
Never invest in a business you can’t understand.that's also fit for trading strategies as well

The quote is perfect.

But i dont have problem in understanding.

Just for an example: If i drive a bike without brakes and fall down, It does not mean i dont understand driving.

Understanding Business is very important at the same the business feasibility should be there.

 

[mvkarthik]

Here you use options to trade or futures?
futures trades only
what's the stops ?
(nifty),RR-3:1
for nifty 30 min ST-30 to 50 points,target-100 to 150 points
for nifty 4hour ST-50 to 100 points,target-250 to 300 points

where you use 30 min & 4hour Tf?
(i use 30min chart for 2 to 3 days Position )
(i use 4hour chart for 5 days or more then 5 days Position )

The quote is perfect.

But i dont have problem in understanding.

Just for an example: If i drive a bike without brakes and fall down, It does not mean i dont understand driving.

Understanding Business is very important at the same the business feasibility should be there.

i drive a bike with brakes