Trading Nifty Options based on 8 EMA plus minus

[chintan786]

Going Home with 7900 PE @ 82.3

 

[rh6996]

SL hit at 109.80 and closed at 119 !

 

[rh6996]

For tomorrow : 7th Oct 2014 :

Buy 8000 CE when Nifty Futures is ~ 8005 Min qty 3 lots.

Exit one third qty at 20% or when Nifty Futures is around ~8050 !
If Nifty Future closes above ~7982, carry home balance qty. otherwise, i.e. if Nifty Future is closing below 7982, exit fully ! Intraday SL is 7956 ! When NF hits 7956, exit 8000CE and enter 7900PE !

 

[rh6996]

SL hit at 109.80 and closed at 119 !

Carrying home this position of 8000 PE would have given decent profit with the same doing a high of 138 ! Anyways, was out and spent my holidays without tension hence take that as a positive!

 

[rh6996]

Carrying home this position of 8000 PE would have given decent profit with the same doing a high of 138 ! Anyways, was out and spent my holidays without tension hence take that as a positive!

Oh, an error! I was holding 7900PE and not 8000PE ! Seems we have an opportunity to enter the same Option at lower rates! Should we enter as our exit was more because of an extended weekend!!

 

[gkpc]

Thanks to you RH , I held on to 2 lots of 8000 PE I bought at 123 ! Exited 1 lot today at 148 and still holding 1 lot !

 

[gkpc]

Thanks to you RH , I held on to 2 lots of 8000 PE I bought at 123 ! Exited 1 lot today at 148 and still holding 1 lot !

As lower target of Nifty Futures was met, do yo think I should have exited fully on tgt being hit in Nifty futures???

Also should I have entered 7900PE and not 8000 PE?? Whats your take on it?

 

[rh6996]

Hi gkpc, I am myself still struggling o finalise the Trading Rules. Inputs as from you would help us reach a decision. Also need to look at past charts to finalise. It seems logical to exit the options when we reach the Target of ~0.9% but again as we are not trading th future and risk in Options is lower, on second thoughts, why not hold on to part quantity and ride the move in our direction. We need to be careful about time vlue erosion as we are LONG in Calls or Puts.
You did well in holding on to the PUT ! About whether one should have taken position in 7900 PE or in 8000 PE is again a tricky question. Maybe we get the same return on Point basis but would be different if calculated on percentage terms. Here it can be an individual decision though the timig of entry also matters. If we are in the beginning of the month I would prefer entering 7900PE and in mid month would have entered 8000PE .

 

[chintan786]

OPEN Longs: NIFTY 8050 CE @ 65 and Shrted Nifty 7850 PE@ 42.

 

[Fundootrader]

Any updates on this interesting strategy. How is this strategy holding out in last 2 days - i.e. in sideways market