Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
re: Day trading Nifty & Banknifty Futures
Learnt something from my trader friend. It goes as under :
You have to make a guess of how high can NF go in next 3 months...and whenever you get a rally sell one NF contract and sell near the money puts. This he calls his income strategy....I did a trade on this in Oct contract and the actual figures were as under :
1) The market was at 6170 and I sold one contract NF at 6170 . Also sold 6200 put at 135.
The idea here is if the market comes down , we make 135-30=105 points. If the market goes up, and say closes at 6250....we will loose 80 points in our short future..but will make 135 points on the puts...and we carry over the NF sell at 50 points carry over difference.....and sell 6250 put at 140-150 for Nov......and continue...the only danger is if NF goes 600 points from your first sale....you have to pay 600x 50 =30,000 as negative difference...but you get 135 x3 =405 as puts premium plus 40x3 =120 so total 525 points back even if market has gone 600 points against you.....
2) I squared up my NF sale at 6140 just before RBI meet making 30 points profit plus covered my puts at 90 giving me profit of 45 points in puts so total profit was 75 points .
As I temporamentally cannot hold loosing positions, I dont intrend trading this strategy....did one trade in Oct series just to know how it works....this is a vyaj return strategy.It was fun trading it to know how the vyaj badla wallas think and work.They consider that they got a return of 525 points on investment of 600 points. I asked them where is the money coming in ? Their answer is all the money will come back after market comes down....after 300,500 or 700 points also.That is how the financers think and play.
The above figures I am writing from the memory...they could vary a little..but writing just to give the thought behind it.
I dont recommend trading this strategy....posting just for information.
Note : Hope our trader friends dont get " inspired" by this strategy and put all their loosing positions on this strategy. It needs deep pockets and a mindset to see market move 300-400 points against us....very tough on psyche.
Smart_trade
Learnt something from my trader friend. It goes as under :
You have to make a guess of how high can NF go in next 3 months...and whenever you get a rally sell one NF contract and sell near the money puts. This he calls his income strategy....I did a trade on this in Oct contract and the actual figures were as under :
1) The market was at 6170 and I sold one contract NF at 6170 . Also sold 6200 put at 135.
The idea here is if the market comes down , we make 135-30=105 points. If the market goes up, and say closes at 6250....we will loose 80 points in our short future..but will make 135 points on the puts...and we carry over the NF sell at 50 points carry over difference.....and sell 6250 put at 140-150 for Nov......and continue...the only danger is if NF goes 600 points from your first sale....you have to pay 600x 50 =30,000 as negative difference...but you get 135 x3 =405 as puts premium plus 40x3 =120 so total 525 points back even if market has gone 600 points against you.....
2) I squared up my NF sale at 6140 just before RBI meet making 30 points profit plus covered my puts at 90 giving me profit of 45 points in puts so total profit was 75 points .
As I temporamentally cannot hold loosing positions, I dont intrend trading this strategy....did one trade in Oct series just to know how it works....this is a vyaj return strategy.It was fun trading it to know how the vyaj badla wallas think and work.They consider that they got a return of 525 points on investment of 600 points. I asked them where is the money coming in ? Their answer is all the money will come back after market comes down....after 300,500 or 700 points also.That is how the financers think and play.
The above figures I am writing from the memory...they could vary a little..but writing just to give the thought behind it.
I dont recommend trading this strategy....posting just for information.
Note : Hope our trader friends dont get " inspired" by this strategy and put all their loosing positions on this strategy. It needs deep pockets and a mindset to see market move 300-400 points against us....very tough on psyche.
Smart_trade
Last edited:
, wish your family happy diwali 
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