Day Trading Stocks & Futures

[TraderRavi]

slowly BN moving up but nifty crap still in -ve.

 

[against_tides]

Phir se phone lagata hoon... kya chal raha hai.. green red , red green..

reddish green...greenish red..

 

[Raj232]

For buying USDINR options you need to pay the premium.

For option writing the margin depends on strike price i.e. how far the strike is from LTP. Usually it is approximately 1800 rupees. And varies from 1600-2200. So as a thumb rule I keep margin of 2k for each lot in my account.

I prefer options to futures, because I am bad at predicting directions. Burnt my hands badly with futures. Option writing provides some headroom and allows to me at least adjust my position to some extent.

How far away you write .. and what is the average return expected ..?

 

[TraderRavi]

I prefer options to futures, because I am bad at predicting directions. Burnt my hands badly with futures. Option writing provides some headroom and allows to me at least adjust my position to some extent.

but how do you cope with situations like yesterday. friday close was 70.05 and then monday gap up around 70.35 and moved up all day till 70.66.
lets say if someone sold calls on friday toh monday ko to lag gayi hogi.

 

[primitivetrader]

bnf upside tgt may be 28896-28988. currently in a tight trading range with double bottom at lod which gave chance to go long. another long chance was @ double bottom @ 28767

 

[raindrops]

For buying USDINR options you need to pay the premium.

For option writing the margin depends on strike price i.e. how far the strike is from LTP. Usually it is approximately 1800 rupees. And varies from 1600-2200. So as a thumb rule I keep margin of 2k for each lot in my account.

I prefer options to futures, because I am bad at predicting directions. Burnt my hands badly with futures. Option writing provides some headroom and allows to me at least adjust my position to some extent.

what is the avg price you sell for and how far away from the future price?

 

[against_tides]

While buying/shorting options do we prefer limit sl order for stop loss or market sl..
I have seen options growing 300% intraday with very less volumes....in this case SL limit order might not work..

 

[soft_trader]

For buying USDINR options you need to pay the premium.

For option writing the margin depends on strike price i.e. how far the strike is from LTP. Usually it is approximately 1800 rupees. And varies from 1600-2200. So as a thumb rule I keep margin of 2k for each lot in my account.

I prefer options to futures, because I am bad at predicting directions. Burnt my hands badly with futures. Option writing provides some headroom and allows to me at least adjust my position to some extent.

How far away you write .. and what is the average return expected ..?

what is the avg price you sell for and how far away from the future price?

I usually write 2 strikes away from CMP. Usually I target to get around 0.04-0.05. Sometimes I get such prices in options which is 3 strikes away from LTP. I write only weekly options.
In the beginning of the week one can easily get options at around 0.03 which is 3 strikes away, and at a margin requirement of 2k, it is 6% monthly return on average.

 

[mohan.sic]

Try this for few months . . .

Trade only on one side . . . lets say you chose to be a bull and trade only Long setups
Once you choose your side and then willingly let go of all the great opportunities to trade the other side . . .
Believe me, once you do that, you will start seeing the short opportunities very clearly


Happy

you are right sir, but

" all the great opportunities " happen to be great only if they ended up happily

And " all the great opportunities " before they happened, will also have proportionate risk associated with them.

Coming to you point, " It always looks as a great opportunity at the end, when we dint ride the boat.
And Even if I am on the boat, the odds of cashing in that great opportunity is very less.

We can find ample examples here itself, in conversations like
1) bought PE at 8 rs and exited at 9 rs after 2 hrs. as market is not supporting. But after that the same PE touched a high of 90 rs. ( we feel that we missed a great opportunity when it went to 90. but can we really take it )

2) bought CE at 12 rs and my SL was hit at 10 rs and after that it touched 110. ( again we feel that we missed a great opportunity due to SL.

Missed a great Opportunity is a very common phrase and feeling.
But do we hear things like "Took up the great Opportunity"

 

[soft_trader]

but how do you cope with situations like yesterday. friday close was 70.05 and then monday gap up around 70.35 and moved up all day till 70.66.
lets say if someone sold calls on friday toh monday ko to lag gayi hogi.

Yesterday I did a mistake of jumping right at the opening after looking at the gap up in USDINR. Normally my rule is to wait until 10, and observe the direction. Yesterday I wrote at a premium of 0.05 (70.75CE) and it went upto 0.1350, but I am holding it knowing that the intrinsic value is 0. And if the market stabilises then by the end of week it will become 0. by Thursday if the spot price moves closer to 70.75 then I shall close the existing position and roll over to next weeks 71CE or higher with similar premiums. (Note: I won't do the rollover this week if this scenario comes because of election result next week, and it is a self-declared holiday for me, but this is what I normally do).

But sometimes, the market just moves relentlessly in one direction against me, and I am yet to figure out a way.