3 Option Strategies Tested Here

narayanrk2003 · #41 23rd July 2008, 12:02 AM

Sorry, it is 4000 put.

awachat · #42 23rd July 2008, 06:16 AM

Yesterday I have made big loss because of ICICI

At starting I brought PUT of 4200 after some moment ICICI page was started showing page timeout and acting very slow I was trying to buy call for 4200 but I was not able to reach till buy menu it was started giving page not found and other stupid error after 25 to 30 minutes I was able to buy but till that time I was already lost 10000 Rs.

Because of this incidence I have made some strict rule which will follow:-

1)I will never buy or sell any position in first/last 35 minutes. (I have seen market is very volatile between these timing.)

2)I will always divide total investment equally in three different strategies and invest.

Please let me know friends your comments and I need to add any more rule.

I have some queries based on strategies please clarify:-

1)On first page Mr. Gunavashi has given following strategies under Straddle “(ex:when nifty is around 4100 buying 1 lot 4100 call and 1 lot 4100put)” I want to know when nifty market price is 4240 then we have to go for 4200 call or 4300 call ?

2)@ AW10 :- You was updated in previous comments that Guts are more risky then other two strategies. Do you think we have to invest less money in gut strategy?

3)After buying Call/Put how much time you hold? Or tread daily based?

awachat · #43 23rd July 2008, 06:23 AM

Hi Naresh

Thanks for your update. Now I am also started thinking for changing broker
Currently I am using ICICI as primary and Sharekhan for backup,
I feel Sharekhan site work well might because of they have less customer. Do you have any idea of Sharekhan ?

Quote:

Originally Posted by nareshch

Per unit brokerage is around Rs2/- for you .
Does this include trasaction charges , Stampduty and STT ?
Isthis brokerage applies only for Intra or you can hold the postion with same brokerage ?

If it is all inclusive , i dont think its on higher side

I am using Rkglobal from some time .Brokergae is Rs9/- per lot . After adding all charges per unit brokerage is around 1rs. Frankly speaking , i didnt calculate precisely but its in that range.

Advantages :

Odin plat form for realtime quotes and fast orders . I think any platform in world is faster than icicidirect.

Disadvantages :
Odin used to disconnect or Hung couple of times .They upgrade the software and i think the issue is rectified .
Helpdesk is not too polite as ICICIdirect.

Naresh

awachat · #44 23rd July 2008, 06:28 AM

Hi Kvram,

Thanks for update can you please let us know how much brokerage they charge for say nifty 4200 Call / Put for 50 Qty any idea? I can’t check this because I am not in India. if you update, these will help us lot.

Quote:

Originally Posted by kvram

awachat sir less brokerage is only R MONEY please do enquire about service in your near branch ,

awachat · #45 23rd July 2008, 06:38 AM

Quote:

Originally Posted by kvram

awachat sir less brokerage is only R MONEY please do enquire about service in your near branch ,

Quote:

Originally Posted by narayanrk2003

Nice thread. Keep going.

For the last three months I have been following strangle strategy on Nifty and RIL and made some decent money.

Today I squared off of 5 lots of RIL 2010 put @ 24 and RIL 2190 call @70.
Net profit is, 16750 for 5 lots.

Happy strangle trading.

Cool nice profit how much time did you hold position or done intraday?

nareshch · #46 23rd July 2008, 10:27 AM

Quote:

Originally Posted by awachat

Yesterday I have made big loss because of ICICI

At starting I brought PUT of 4200 after some moment ICICI page was started showing page timeout and acting very slow I was trying to buy call for 4200 but I was not able to reach till buy menu it was started giving page not found and other stupid error after 25 to 30 minutes I was able to buy but till that time I was already lost 10000 Rs.

Because of this incidence I have made some strict rule which will follow:-

1)I will never buy or sell any position in first/last 35 minutes. (I have seen market is very volatile between these timing.)

2)I will always divide total investment equally in three different strategies and invest.

Please let me know friends your comments and I need to add any more rule.

I have some queries based on strategies please clarify:-

1)On first page Mr. Gunavashi has given following strategies under Straddle “(ex:when nifty is around 4100 buying 1 lot 4100 call and 1 lot 4100put)” I want to know when nifty market price is 4240 then we have to go for 4200 call or 4300 call ?

2)@ AW10 :- You was updated in previous comments that Guts are more risky then other two strategies. Do you think we have to invest less money in gut strategy?

3)After buying Call/Put how much time you hold? Or tread daily based?

1) you have to go for a strangle . 4300C and 4200P
2) Guts require high premium . Nearing expiry premiums will erode drastically ,exposing us to more risk .
3) It depends on your risk and strategy . But Intraday trades wont give much profits as Intraday volaitility willnot be too much .These strategies are mainly targettted @ gap up and gapdowns .

Naresh

awachat · #47 23rd July 2008, 11:45 AM

Thanks for update.

nareshch · #48 23rd July 2008, 11:54 AM

Quote:

Originally Posted by awachat

Thanks for update.

This is not differant from Strangle . Strangle says to buy the next strike near to spot ( call and put) . For 4240 , the next strikes are 4300c and 4200P . If you are watching nifty in multiples of 100 , then You may consider 4400C and 4100P . Nifty@ 4240 , 4300c and 4100p is not exact hedge .

Naresh

awachat · #49 23rd July 2008, 12:33 PM

Thanks for your update. I was little jumble. Now I understand.
Check the attach file. I am holding call/put at given price

Quote:

Originally Posted by nareshch

This is not differant from Strangle . Strangle says to buy the next strike near to spot ( call and put) . For 4240 , the next strikes are 4300c and 4200P . If you are watching nifty in multiples of 100 , then You may consider 4400C and 4100P . Nifty@ 4240 , 4300c and 4100p is not exact hedge .

Naresh

nareshch · #50 23rd July 2008, 12:44 PM

Quote:

Originally Posted by awachat

Thanks for your update. I was little jumble. Now I understand.
Check the attach file. I am holding call/put at given price

I am looking opprtunities for entering a new trade . I am not having any postions now . As expiry is nearing , risk in playing with these strategies will increase as premium erodes very fast . I am checking for next month trades .

Naresh

Check your Private messages
Naresh