Karthik's OPTION Trading Strategy!

[karthik_sri]

AXISBANK Options Trade of 15.09.15

5 Min Future Chart of Axis Bank

5 Min Axis Bank Put Option Strike Price 480

Buy @ 13.50
Sell @ 14.85 (being 10% profit)
SL @ 12.60
Profit - Rs.675/- (Lot Size 500 x Rs.1.35/-)

 

[karthik_sri]

Axis Bank 16.09.15

5 min future chart of Axis Bank

5 min Axis Bank Call Option Strike Price 500

Buy @ 13.20
Sell/Target @ 14.55
SL @ 12.70
Proft - Rs.675/- (Lot Size 500 x Rs.1.35/-)

 

[bunti_k23]

karthik bro have u considered theta component when u thought of buying options? how will u tackle it? see at starting of the month u will easillly hit ur target but as days near to expiry price willl tend to hit ur stoploss .take a look

inversely if ur considering of selling options this thing will act in your favour.
i just have a rough idea as iam also looking forward to trade in options by buying calls puts.
consider in a month(30 days) we will only trade first 15 days in current month expiry and after 15 days we will switch to next month options.so by this method we might have more chance to avoid theta effect.wats ur view?

 

[karthik_sri]

karthik bro have u considered theta component when u thought of buying options? how will u tackle it? see at starting of the month u will easillly hit ur target but as days near to expiry price willl tend to hit ur stoploss .take a look

inversely if ur considering of selling options this thing will act in your favour.
i just have a rough idea as iam also looking forward to trade in options by buying calls puts.
consider in a month(30 days) we will only trade first 15 days in current month expiry and after 15 days we will switch to next month options.so by this method we might have more chance to avoid theta effect.wats ur view?

Bro,
I have not considered or much aware of Theta, Gamma & Delta and scratched my head Yes little bit I know...but not used or applied...The Intrinsic value of a option will fall when the contract is nearing expiry. Alternatively take the next month contract in such case...I go by price action and the strategy or the trade I have posted is for Intraday and not for carry forward position till the expiry.
The profit is on % age and if I look for 5% return on a Trade it is good and buy price of Rs.100/- or Rs.10/- will not make any difference as the expectation is 5% from my investment No Gamma, Delta, Theeta to play

This thread is a learning thread and as I said in the beginning not started with real money.

 

[pakatil]

Today ......8000 CE Entry.....49. Hit SL 45.

 

[pakatil]

Today......8000 PE Long. Hit Target. 10 pts net gain......

 

[pakatil]

Yday NF high was 8014. Is it worth trading 8000 CE if a Long triggers today.....??

My preference would be 7800 CE.

 

[pakatil]

Today 7800 CE Long. Hit Target. 10 pts net gain

 

[karthik_sri]

Yday NF high was 8014. Is it worth trading 8000 CE if a Long triggers today.....??

My preference would be 7800 CE.

Playing safe with In The Money Option!

 

[pakatil]

Playing safe with In The Money Option!

Expiry being tomorrow, OTMs are not worth trading.