Day Trading Stocks & Futures

[vikas2131]

SnP down to support again. This time tuting down I guess.
Down jones futures down 500 points. SnP down 2%.
Today I guess closing at lower end of the days trading range. Agar upar jayega tho ...

Strong chances of it breaking down.

 

[Riskyman]

Strong chances of it breaking down.

Yes. Last night SnP closed at the lowed end of the day's trading range. There was a small attempted rally of a few points but that did not hold.
Need closing below 2600 early next week.
I would also like to point out that below 2600 there is a small cluster of support going back to early 2018. SnP will have to trade well below 2550 for stronger down trend to continue. Lets see how it all plays out.

 

[Positivetrader]

Hello Friends,

I have a query around the FnO trading. Taking an example of TataSteel Future price @510 and pricce of 490CE is 30.

Can I buy 1 lot in Futures @ 510 and sell 1 lot of 490 CE @ 30, will that result in net profit of 10 rs at expiry?

Assuming TataSteel closes @ 525 on expiry day.
what will happen if I dont sell the long position in Futures and what will happen if I dont close the position in 490 CE.

Thanks

It is very important to understand the possible outcome when we take trades.
In your assumed case,
TATASTEEL Future is bought at 510.00 and
490 Call is sold at 30.00
This set up will not guarantee profit of 10.00 points for you.
In fact, the maximum possible profit is limited to 10 points by this set up..
whereas, the maximum possible loss remains huge ..
The profit of 10 points is possible as long as the underlying price is greater than or equal to 490 by expiry..
If the price moves to 485, the gain is limited to 5 points..
If the price moves to 480, there will be no profit and no loss..
And when the price starts moving below 480, the loss will start increasing by equal points..
If price moves down to say, 450..the loss will be 30 points.. and a price of 400 will result a loss of 80 points..
So, think and decide the trades..
If you have any plan to adjust the trade set up and manage your risk if and when the price moves down below 490, you may be able to retain your limited profit of 10 points..
If the price falls below 490 and you are not managing your trade position, then slowly your profit will reduce and loss will start..
Think over the possible outcomes before initiating the trade set up.

 

[Sakthiganesh]

How To Setup An Affordable Quad Four Monitor Trading PC

 

[rishu_d]

It is very important to understand the possible outcome when we take trades.
In your assumed case,
TATASTEEL Future is bought at 510.00 and
490 Call is sold at 30.00
This set up will not guarantee profit of 10.00 points for you.
In fact, the maximum possible profit is limited to 10 points by this set up..
whereas, the maximum possible loss remains huge ..
The profit of 10 points is possible as long as the underlying price is greater than or equal to 490 by expiry..
If the price moves to 485, the gain is limited to 5 points..
If the price moves to 480, there will be no profit and no loss..
And when the price starts moving below 480, the loss will start increasing by equal points..
If price moves down to say, 450..the loss will be 30 points.. and a price of 400 will result a loss of 80 points..
So, think and decide the trades..
If you have any plan to adjust the trade set up and manage your risk if and when the price moves down below 490, you may be able to retain your limited profit of 10 points..
If the price falls below 490 and you are not managing your trade position, then slowly your profit will reduce and loss will start..
Think over the possible outcomes before initiating the trade set up.

Thanks for the detailed response. It makes better sense to me.

Another question..
Say spot price remains at 500 and 490 call.
Last traded price is 13rs.

Say I have shorted the call and I don't buy.
Will it be automatically gets squared off?
If yes at wat price. 10rs(500-490) or 13rs?
Any other implications to keep in mind while trading in options and squaring off on expiry day

 

[Riskyman]

Thanks for the detailed response. It makes better sense to me.

Another question..
Say spot price remains at 500 and 490 call.
Last traded price is 13rs.

Say I have shorted the call and I don't buy.
Will it be automatically gets squared off?
If yes at wat price. 10rs(500-490) or 13rs?
Any other implications to keep in mind while trading in options and squaring off on expiry day

Option pricing is always based on Spot prices.
If you have shorted a 490 Ce and if the expiry happens at 500 then the Call is "In The Money (ITM) and will have an intrinsic value of only 10/- i.e
500-490=10 rs. Last traded price doesn't matter.
Yes the position will be automatically squared off/expire.

 

[lemondew]

Some news for tomorrow

https://www.investing.com/news/econ...ndar--top-5-things-to-watch-this-week-1715896

https://www.bloombergquint.com/markets/what-dalal-street-is-saying-about-the-exit-polls

 

[Riskyman]

Most of Asia in Red. SGX is down 130 points.

 

[TraderRavi]

Most of Asia in Red. SGX is down 130 points.

Swing short walon ke SL friday ko hit ho gaye honge. Koi to long bhi gaye honge specially in BNF. Abhi I have no position but ye bade gapdown sab gadbad kar dete hain.

Gapdown then Gapup then again Gapdown

 

[sanju005ind]

Me watching today's drama from shatabdi express pune to hyd.