Nifty Options Vertical Spread Trading

[ananths]

But today u r in 5 pts gain....:thumb:

Yes. will carry this trade further with SL level 5650 :thumb:

 

[pakatil]

Yes. will carry this trade further with SL level 5650 :thumb:

5650 in spot...??

Tab to Dilli bahuth door hai........

 

[ananths]

5650 in spot...??

Tab to Dilli bahuth door hai........

He he yes.
5650 is entry point..so whatever happens will not accept loss in this trade. Waiting may reward more and morning it should not gap up. Also as long as market is below 5650 we should be safe. :clap:

 

[ananths]

Today's position

Buy 1 lot 5600PE @ 84
Sell 1 lot 5500PE @ 55

SL at 5700 Levels. Let us see how it goes...

As of now the status is below

5600CE @ 130
5500PE @ 88
Total profit = 13 points :thumb:

Today it would have been windfall profit if naked option was traded..but everyday is not same...I will carry this position for tomorrow. :thumb:

 

[ananths]

Today´s trade. Order placed when nifty was around 5700.
Buy 1 lot 5800CE @ 87
Sell 1 lot 5900CE @ 47
SL - 5650 levels. Nifty made a low of 5666 today.
Disclaimer -pls do not trade based on this. Im not responsible for the risk. This is for tracking only.

Did not close the position today...because my SL did not hit. Currently about 6 points loss in the spread...will carry it for tomorrow.
Note:- if it was a naked option i would have closed it at 70..bought at 87.

Covered the 5800CE at 54 ...loss of 33 points. Will wait and cover 5900CE short after some time again SL 5650 levels

Covered yesterdays 5900CE short at 21..
5800 CE @ 55 loss 33
5900 CE @ 21 profit 26
Net loss = 7 points

Friends, Just wanted to analyse this loss trade...
Main mistake was taking a bullish position when the overall trend down..I had expected that market may bounce after the downfall...so we should not expect anything from market.
Another mistake was holding the losing position when it did not give desired move, mainly when we know that we are against the market trend. Fortunately the postion did not lose much and could exit with minimal loss.:rofl:

 

[pakatil]

I bot 5800 PE / Sell 5700 PE on 16th Jul, AUG Series options and squared it on 31st Jul. 22 pts profit. On 5th Aug......bot 5500 PE / Sell 5400 PE and holding it. Now it is in 10 pts gain. Expecting decent profits.

 

[ananths]

I bot 5800 PE / Sell 5700 PE on 16th Jul, AUG Series options and squared it on 31st Jul. 22 pts profit. On 5th Aug......bot 5500 PE / Sell 5400 PE and holding it. Now it is in 10 pts gain. Expecting decent profits.

Wow..thats good. So you have experience in doing this kinda spread. How do you manage stop losses? what is your strategy?

 

[pakatil]

Max risk in current trade is 19 pts if Spot ends up above 5500, Max profit wld be 80 pts if it is below 5400. ie 1:4 RR.. Trying to trade without SL, which is against my basic nature.

 

[ananths]

Pivots for tomorrow,

R3 - 5773, R2 - 5719, R1 - 5630
Pivot - 5576
S1 - 5487, S2 - 5433, S3 - 5344

 

[ananths]

Max risk in current trade is 19 pts if Spot ends up above 5500, Max profit wld be 80 pts if it is below 5400. ie 1:4 RR.. Trying to trade without SL, which is against my basic nature.

Gr8...SL may not be required for such OTM options spread..you might have chosen OTM based on the trend..however I just had one query, when we play spread with OTM options I thought its better to trade Credit spread instead of Debit spread because we will get time value benefit because if market consolidates we will lose the value of the long leg....what you say?