Hi
Well, it is a long Nifty 8000 Jan Straddle. Long Straddle as you are long put and call from the same strike level with the same expiry. What was the deeper reason for the 8000 strike level (Any chart tool or any option tool or both)?
Regarding to your question:
Part one: A long straddle implemented on the right level (It is not needed to do them as told in the book atm) does the job very well, as you see by your self. Margin is non, as you are long both legs. There are quit many option strategies you can implement to play both sides. But handling one of those option strategies to its best with good MM and knowing the BE on each side, is good enough to make money constantly over time.
Now if you want to take a bit more risk, then you can leg into the straddle. So first you would be directional and later you add the other leg with the same strike level and expiry. Not recommended for beginners nor unexperienced option traders as good TA or PA skills are needed plus adjustment strategies in case market goes against us.
Part two: If you want to play both sides, there is no such "Collar", not even modified, as you are always only on one side can have any limited profit. So you must act with leg in and out like the link I sent you. That collar was converted into more or less a pure long leg (Very simple spoken). PP around 50/50 and absolute directional.
Hope that serves your question to a certain level for the moment. Dan /
Well, it is a long Nifty 8000 Jan Straddle. Long Straddle as you are long put and call from the same strike level with the same expiry. What was the deeper reason for the 8000 strike level (Any chart tool or any option tool or both)?
Regarding to your question:
Part one: A long straddle implemented on the right level (It is not needed to do them as told in the book atm) does the job very well, as you see by your self. Margin is non, as you are long both legs. There are quit many option strategies you can implement to play both sides. But handling one of those option strategies to its best with good MM and knowing the BE on each side, is good enough to make money constantly over time.
Now if you want to take a bit more risk, then you can leg into the straddle. So first you would be directional and later you add the other leg with the same strike level and expiry. Not recommended for beginners nor unexperienced option traders as good TA or PA skills are needed plus adjustment strategies in case market goes against us.
Part two: If you want to play both sides, there is no such "Collar", not even modified, as you are always only on one side can have any limited profit. So you must act with leg in and out like the link I sent you. That collar was converted into more or less a pure long leg (Very simple spoken). PP around 50/50 and absolute directional.
Hope that serves your question to a certain level for the moment. Dan /
