SH's MArket Correction Prediction Strategy

[PitBull]

I have also followed the same strategy. 5100 CE and 4800 PE.
However now I feel that a 300 point spread may be a little too high.
Do you think a 200 point spread i.e. 5100CE and 4900 PE may be a little safer?
Your profits will be reduced though because of the higher premium for 4900 PE.

Just thinking aloud , wanted to know your views.

 

[vinst]

100 EMA touched at 4949. I have bought Feb series 5100 CE at 97 and 4800 PE at 87. Total cost of the combo is 184.

Aiming for 50% returns on investment or would like to sell this combo for 275 in coming days..

Lets see .. fingers crossed.

Cheers
SH

SH,

Already booked 50% return on Feb 5100 CE?

vin

 

[Tradewithhunter]

I have also followed the same strategy. 5100 CE and 4800 PE.
However now I feel that a 300 point spread may be a little too high.
Do you think a 200 point spread i.e. 5100CE and 4900 PE may be a little safer?
Your profits will be reduced though because of the higher premium for 4900 PE.

Just thinking aloud , wanted to know your views.

Good question pitbull.....

Since 100 EMA was at 4950, I wanted to buy slightly out of money options to reduce risk. Since 4900 PE and 5000 CE were like only 50 points away from 100 EMA.. I decided to buy 4800PE & 5100 CE.

There are not set rules of which strike price to buy ... sometimes I buy ATM calls and puts.

You can improvise and buy 4900 tomorrow...its just that I wanted to reduce my risk.

Cheers
SH

 

[Tradewithhunter]

SH,

Already booked 50% return on Feb 5100 CE?

vin

Vinst - if you are asking about my personal trade .. I had done ratio buying .. my calls were double the size of puts since in most cases 100 EMA supports Nifty movement and Nifty reverts back to main trend (which is bullish).

I did book some calls today at 130 since I was getting 35% returns on investment already.

I am still holding slightly more lots of calls than puts. If Nifty falls and closes below 100 EMA.. I will close some calls and buy more puts ..

Does above makes sense to you? though this strategy is market neautral .. I still get biased and end up buying either more calls or puts !

Cheers
SH

 

[vinst]

Vinst - if you are asking about my personal trade .. I had done ratio buying .. my calls were double the size of puts since in most cases 100 EMA supports Nifty movement and Nifty reverts back to main trend (which is bullish).

I did book some calls today at 130 since I was getting 35% returns on investment already.

I am still holding slightly more lots of calls than puts. If Nifty falls and closes below 100 EMA.. I will close some calls and buy more puts ..

Does above makes sense to you? though this strategy is market neautral .. I still get biased and end up buying either more calls or puts !

Cheers
SH

SH,
Emotions are hard to beat !!
I am way behind you in that anyway.

vin

 

[yashodhan]

Dear SH,

Just went thru this thread. Congrats for developing such simple methods which anybody can follow. Genius is always simple. Double congrats for sharing your secrets with the public at large.

Much obliged!

 

[tamcoo]

Dear SH,

Like 315, it is also a nice strategy. I have much benefits from 315 & believe so for this also.

However, i am facing a problem. While going through charts (In Metastock) 100 EMA changes as it is zoomed out/in. Could you please help me.

Thanks!

 

[Tradewithhunter]

100 EMA touched at 4949. I have bought Feb series 5100 CE at 97 and 4800 PE at 87. Total cost of the combo is 184.

Aiming for 50% returns on investment or would like to sell this combo for 275 in coming days..

Lets see .. fingers crossed.

Cheers
SH

4800 PE touched 195 today .. I have booked it at 192 which gives me 8 points profit on the overall combo (the original combo was bought at 184).

This also means that the 5100 CE which I am holding is free now for me. If markets rebound from here 5100 CE price will rise.. and all that will be pure profit since I have already recoevered my investment

If markets continue to fall... no problems... I have nothing to lose now.

100 EMA worked again !!!

Cheers
SH

 

[observer]

You are the Man!

 

[niftylover]

Hello SH Sir
can u tell how to set these stratgy in trade tiger charts.or can u tell another new example for nifty for 3 ema specially.i m new to technical analysis so plz help me.
thanks and regards
ranjan