Rrkjh ek sadhi shuruaat

[rrkjh]

I am trading since 2004. That time i was a novice trader who doesn't now how price fluctuates.
But now from past 1 year I am learning and want to master the most risky segment OPTIONS.
I have read about it and still reading how OPTIONS works.
I have made an strangle of the following
Call 5300 apr @Rs.

 

[rrkjh]

5300 nifty apr call@122
5200 nifty apr put@122
Lets see what happens to this trade.

 

[Smart_trade]

I am trading since 2004. That time i was a novice trader who doesn't now how price fluctuates.
But now from past 1 year I am learning and want to master the most risky segment OPTIONS.
I have read about it and still reading how OPTIONS works.
I have made an straddle of the following
Call 5300 apr @Rs.

Small correction... when you have different strike price for both the legs ( 5300 and 5200 as mentioned in your previous post ) it is called a Strangle ( and not a straddle).In straddle we have same strike price for both the legs.

Smart_trade

 

[rrkjh]

I know straddle have the same strike price but if we take two near strike price. It will also work as a straddle.

 

[AnAtheist]

I know straddle have the same strike price but if we take two near strike price. It will also work as a straddle.

Yes it may work as straddle but dear rrkjh according to option theory it's a Strangle not Straddle...
ST da is right on his post ....:thumb:

Regards
AnAthiest

 

[IAtma]

well m not concern about right or wrong but............

either a gambler or an ediot can trade with long options........

if a good trader is using long option means he is under-capitlize....., and for him it is better to trade with cash ( no matter with small position) or to stay-away.

sorry if hurts.

 

[jain.er]

Long on options, and that too on both sides.

I am sorry but you still a novice

 

[sprithiani]

Investopedia explains 'Strangle'
The strategy involves buying an out-of-the-money call and an out-of-the-money put option. A strangle is generally less expensive than a straddle as the contracts are purchased out of the money.

Definition of 'Straddle'
An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.

I agree with Iatma and jain.er
I have tried it many times when I was new. This strategy may give you profit sometimes, but will give u loss only in long run.
You will face problem in exiting after a 100 points move in Nifty.
Anyways wish u very best.

 

[jain.er]

Even if you play straddle dont keep them more then 2/3 days

 

[rrkjh]

Stradlles are useful when the market in dilema. in todays scenario if nifty break 5250 or 5170 in any direction. It will move sharply in that direction. But we cant afford risk. So we use straddle to bet both side of market. They are very useful at the support and resistance level ready to be breached. If nifty moves 150 points in either side there will be moderate 10 to 15 pc return overall