My FnO Trading Diary - Learning, Discussion, A2As, Trades etc.

#12
@timepass
Sir, Can you suggest names of the few active and knowledgeable options traders here on traderji, to whom I can A2A?!
I won't bother them too much, promise!!!!?
What exactly is A2A ?? It's a new term for me :)

Anyway, it's all an open house.
 

Subhadip

Well-Known Member
#13

Subhadip

Well-Known Member
#14

msdtime

Active Member
#15
What exactly is A2A ??
It means Ask-to-Answer.
And used extensively by Quora community.
Whenever a person want to ask some question and he fills that some other person can answer the question and hence direct that question towards him, it is called asked to answer.
This implies that you value that person for his knowledge, and you have a certain degree of confidence in him.
The person feels honored for being asked a question and hence many times start his answer with
"Thanks for A2A"
 

msdtime

Active Member
#16
Be aware ,that if market goes 100 points up, loss will be higher..just a point to note.. maximum loss is unlimited..
Can you elaborate a bit bro.
My strategy calculations say that I wont go below current level of unrealised profits before 10900 on upside or below 10300 on downside at expiry?
Yes have shorted 10600 Call 2 lots & long in NF one lot..
 
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Subhadip

Well-Known Member
#17
Can you elaborate a bit bro.
My strategy calculations say that I wont go below current level of unrealised profits before 10900 on upside or below 10300 on downside at expiry?
am i reading it correctly as u have shorted 10600 Call 2 lots & long in NF one lot.. Am i right?
 

Subhadip

Well-Known Member
#18
am i reading it correctly as u have shorted 10600 Call 2 lots & long in NF one lot.. Am i right?
The problem is easy..your calculation is also okey..but the real situation is difficult..
Say if NF goes to 10900...NF will be 10900, but 10600 Call will not be at just 300, it will be around 365 ..say if it goes by two three days,

So u can wait then, but if it moves to 11000, then.. will u wait till expiry? Will there be any panic?
 

msdtime

Active Member
#19
.but the real situation is difficult..
That's why I came here. Need lil bit of guidance from seniors.

Upper protection is there till 11100

will u wait till expiry? Will there be any panic?
I really donno what to expect. That will be uncharted territory for me. I haven't experienced any emotional things in options trading. But I guess I can handle 10k loss max.

I really don't know anything about what to do in such scenario. What are the course correction strategies if strangle/straddle goes wrong? How the adjustments are done in options trading? which position to square? which position to create? So I certainly need as much guidance as possible. :)

But here is what I think I will do, as per my guesses. -

1. The delta neutral strategy is initiated keeping in mind 2 predictions from various sources - a. Nifty will remain range bound in May series with immediate Resistance at 10700 and support at 10500. The OI data also suggested the greatest OIs at 10400, 1500, 10800 and 11000. Also Max Pain in at 10600.
b. Few other sources talk of more probability of downside than upside if above prediction of range-bound Nifty goes wrong and Nifty decided to move one side.

In case of range bound and downside I will pocket whole of the premium (30K) while CF the Fut as Mother trend is UP.

2. But if Nifty index breaches 10800 (1 sd) by this weekend (11 May), negating both of the predictions, then -
I will square off the FUT and CE and pocket in the 12500 profits.
But I am thinking of squaring off only the CEs shorts by booking the 15k loss and continuing the Fut for next targets of 11k.


So @Subhadip
1. Is there any correction, improvements required in this strategy? This is my 2nd options trade only.
2. If not, then still are there any better alternatives?
3. Is my flow of reasoning right? or are there some crucial points that I have missed?
4. Any other suggestions. I am scared seeing today's move!
 

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