Help with Nifty strategy.

#11
Re: Help with Nifty stratergy.

Cause you are not ready as of now to trade in derivative market.. as you don't have much knowledge about it.. and no idea about what risk you might be taking.

And let me tell you 1 thing about risk.I think there is a possibility that markets may touch sub 2100 levels in January alone but are you sure you are up for losing 25k even if you are trading in 1 lot and also considering that you wont average your trade(like most starters do..) when the market starts to fall ?

Also don't tell me it is not possible, cause if you think it is not, go check out what happened in October..
What do you mean in this situation when u say average ? (Should I cover 2700 calls and sell 2600 calls when the market moves down or should I sell another call and buy a future ?)


And thanks everybody for all the advise. I'm going to square this off today.
 

dumdum20008

Well-Known Member
#12
Re: Help with Nifty stratergy.

Today I bought Nifty Futures at 2751.10 and sold Nifty Call (2700 Strike) at 164.


I thought that the option premium for the 2700 call was pretty high and I wanted to cover the risk of selling the Call buy buying Nifty Futures.

Could someone tell me what is the maximum risk and maximum profit. And is this a profitable strategy ? (I'm new to nifty trading so I'm not sure. But, I think that the maximum profit will be 103 and I don't know what the maximum loss would be).

sorry gys,
today im in a jolly mood, because being on a constant learning path, i made my first trade based on ACD system ( Mark fisher) which was success today.
Somewhere i read this

Derivatives are weapons "for" (of) mass ( capital) destruction.
should be used with proper care, otherwise user will be treated as mass.
If not cared, radioactive radiations emmited post use, are cureless.
sorry if i interrupeted, as i never post like this.
 
#14
and with only 6 trading days left the nifty 2700 call is still trading at a premium of ~40 and the nifty futures is at a discount (this could remain this way though).
 

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