Advanced Nifty Option Strategies

#1
Dear members,

Greetings to one and all, this is my first introdutory post here. I hope to learn and share my knowledge here succesfully.

I am basically an engineer and head a software company in Bangalore, I was an investor in equity markets from 2000, moved on to become an active futures trader from 2004 to 2008, made and lost a lot of money, finally after a break of one year, I was drawn towards options, i attended online courses,read a lot of books and voila took a leap of faith again in the market but with strict rules. I have taken up nifty option trading very seriously from end of 2009.
I started off with short strangle and moved on with different stratgies as my reasearch and knowledge increased with time.Coming to the point now, I currently am on a strategy which involves about 5 or 6 strikes of the next month, selling both put and calls for Example: if market is at 5700 then my position will be from 5500 to 5900 (or even 5400 to 6000) November 2012, contract.I would generally start the trade around the middle of current month and wait for the day when vix has increased.
I am contantly figuring the adjustments during the intra month movements of market to maintain some sort of delta neutral, this strategy is performing very well for me for some months now,but I caution all the people who are new to options to keep away from this strategy as this involves min to minute monitoring your position and changing the position appropriately to maintain delta neutral. I am not still anywhere close to an expert in the adjustments yet but I am very much better than the first day i figured this strategy,I admit that I had to pay a big price in the learning process to have gotten here.
I am on a constant persuit to interact with people who would have understood my strategy and i would like to share my experiences and learn from them on various counts.
All the best to one and all.
regards
shankar vijayaraghavan
 
#5
Dear members,

Greetings to one and all, this is my first introdutory post here. I hope to learn and share my knowledge here succesfully.

I am basically an engineer and head a software company in Bangalore, I was an investor in equity markets from 2000, moved on to become an active futures trader from 2004 to 2008, made and lost a lot of money, finally after a break of one year, I was drawn towards options, i attended online courses,read a lot of books and voila took a leap of faith again in the market but with strict rules. I have taken up nifty option trading very seriously from end of 2009.
I started off with short strangle and moved on with different stratgies as my reasearch and knowledge increased with time.Coming to the point now, I currently am on a strategy which involves about 5 or 6 strikes of the next month, selling both put and calls for Example: if market is at 5700 then my position will be from 5500 to 5900 (or even 5400 to 6000) November 2012, contract.I would generally start the trade around the middle of current month and wait for the day when vix has increased.
I am contantly figuring the adjustments during the intra month movements of market to maintain some sort of delta neutral, this strategy is performing very well for me for some months now,but I caution all the people who are new to options to keep away from this strategy as this involves min to minute monitoring your position and changing the position appropriately to maintain delta neutral. I am not still anywhere close to an expert in the adjustments yet but I am very much better than the first day i figured this strategy,I admit that I had to pay a big price in the learning process to have gotten here.
I am on a constant persuit to interact with people who would have understood my strategy and i would like to share my experiences and learn from them on various counts.
All the best to one and all.
regards
shankar vijayaraghavan
So how often (delta skew) do u find it worth ur while adjusting positions.;)
 

gunsho

Well-Known Member
#6
Dear members,

Greetings to one and all, this is my first introdutory post here. I hope to learn and share my knowledge here succesfully.

I am basically an engineer and head a software company in Bangalore, I was an investor in equity markets from 2000, moved on to become an active futures trader from 2004 to 2008, made and lost a lot of money, finally after a break of one year, I was drawn towards options, i attended online courses,read a lot of books and voila took a leap of faith again in the market but with strict rules. I have taken up nifty option trading very seriously from end of 2009.
I started off with short strangle and moved on with different stratgies as my reasearch and knowledge increased with time.Coming to the point now, I currently am on a strategy which involves about 5 or 6 strikes of the next month, selling both put and calls for Example: if market is at 5700 then my position will be from 5500 to 5900 (or even 5400 to 6000) November 2012, contract.I would generally start the trade around the middle of current month and wait for the day when vix has increased.
I am contantly figuring the adjustments during the intra month movements of market to maintain some sort of delta neutral, this strategy is performing very well for me for some months now,but I caution all the people who are new to options to keep away from this strategy as this involves min to minute monitoring your position and changing the position appropriately to maintain delta neutral. I am not still anywhere close to an expert in the adjustments yet but I am very much better than the first day i figured this strategy,I admit that I had to pay a big price in the learning process to have gotten here.
I am on a constant persuit to interact with people who would have understood my strategy and i would like to share my experiences and learn from them on various counts.
All the best to one and all.
regards
shankar vijayaraghavan
Welcome to TJ. Short Strangle is a good one. But if you have time to monitor minute by minute, then this doesn't give that much returns in a month (for the margin we keep with broker). Don't you think directional trading is better? I am not trying to say negative, just wanted your view on that :)

Also, when market moves up/down, have you considered adding protective legs around this strangle to make it a condor trade? so that you can leave it for the rest of the month.

Option strategies are always wonderful. I could be wrong, but I felt directional strategies to have more RR than straddles/strangles.
 

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