seniors please tell me when i post anything wrong
There are 3 simple option strategies.Straddle,Strangle and Gut.
1.Straddle, is a volatile option strategy or what we call Market Neutral Strategy. Being market neutral means that a Long Straddle profits no matter if the underlying asset goes up or down. Yes, a Long Straddle allows you to simply put on the position and then totally take your mind off the stock as you will profit no matter if the underlying asset goes up or down.(ex:when nifty is around 4100 buying 1 lot 4100 call and 1 lot 4100put)
2.Strangle, is a volatile option trading strategy that profits when the stock goes up or down strongly. The Strangle is a cousin of the Long Straddle and the Long Gut, making up a family of basic volatile options strategies. Learning the Straddle first makes the Strangle easy to understand.(ex:when nifty is around 4100 buying 1lot 4200calll and i lot 4000put)
3.Gut Spread is a volatile options trading strategy designed to profit when the underlying stock moves strongly upwards or downwards. The Long Gut Spread is a cousin of the Long Straddle and the Long Strangle with the only difference being that In The Money options are used instead. The Long Gut Spread is useful when no At The Money options are available when you want to use a Straddle. In fact, since exactly at the money options are so rare, the Long Gut Spread using in the money options and the Long Strangle using Out Of The Money options are far more commonly used than the Straddle.(ex:when nifty is around 4100 buying 1 lot 4000 call and 1 lot 4200 put)
Today i followed these 3 strategies in PAPER TRADING and will post position of these 3 from time to time during trading hours.for this i taken nifty july options. i will post like this.4181--201+170--158+139--270+216( this means when nifty spot is 4181, nifty 4100call traded @201,nifty4100put traded@170,nifty4200call traded @158,nifty4000put traded@139,nifty4000 call traded@270 and nifty 4200 put traded@ 216.actually this is in morning of 25th JUNE..
Straddle cost is 201+170=371.
Strangle cost is 158+139=297.
Gut cost is 270+216=486.
multiply cost with lot size 50.
There are 3 simple option strategies.Straddle,Strangle and Gut.
1.Straddle, is a volatile option strategy or what we call Market Neutral Strategy. Being market neutral means that a Long Straddle profits no matter if the underlying asset goes up or down. Yes, a Long Straddle allows you to simply put on the position and then totally take your mind off the stock as you will profit no matter if the underlying asset goes up or down.(ex:when nifty is around 4100 buying 1 lot 4100 call and 1 lot 4100put)
2.Strangle, is a volatile option trading strategy that profits when the stock goes up or down strongly. The Strangle is a cousin of the Long Straddle and the Long Gut, making up a family of basic volatile options strategies. Learning the Straddle first makes the Strangle easy to understand.(ex:when nifty is around 4100 buying 1lot 4200calll and i lot 4000put)
3.Gut Spread is a volatile options trading strategy designed to profit when the underlying stock moves strongly upwards or downwards. The Long Gut Spread is a cousin of the Long Straddle and the Long Strangle with the only difference being that In The Money options are used instead. The Long Gut Spread is useful when no At The Money options are available when you want to use a Straddle. In fact, since exactly at the money options are so rare, the Long Gut Spread using in the money options and the Long Strangle using Out Of The Money options are far more commonly used than the Straddle.(ex:when nifty is around 4100 buying 1 lot 4000 call and 1 lot 4200 put)
Today i followed these 3 strategies in PAPER TRADING and will post position of these 3 from time to time during trading hours.for this i taken nifty july options. i will post like this.4181--201+170--158+139--270+216( this means when nifty spot is 4181, nifty 4100call traded @201,nifty4100put traded@170,nifty4200call traded @158,nifty4000put traded@139,nifty4000 call traded@270 and nifty 4200 put traded@ 216.actually this is in morning of 25th JUNE..
Straddle cost is 201+170=371.
Strangle cost is 158+139=297.
Gut cost is 270+216=486.
multiply cost with lot size 50.
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