Delta Neutral Strategy (Long Nifty @ Long Puts)

[alokdaga]

Hi alokdaga,

Thanks for providing the information, I have reflected this fact into my current trade. I am sure by now you must have seen.

Regards,

Wastej

Alok

 

[[email protected]]

Closing Price of Nifty futures as on September 2, 2005 Rs.2407.00
Closing Price of SP2340 Put Option as on September 2, 2005 Rs.24.00

Only order that was executed today was a sell order of 100 Nifty futures at a limit of 2405.00

Can some one figure out the profit and loss of the trade so far? If not I will do so later in the weekend.

Regards,

Wastej

 

[usha]

hi, I am usha here. I am very new to this forum. Can you please explain me what is delta neutral strategy is about? buying 1000 nifty futures means -- is it buying 10 nifty futures(100*10=1000) or 1000 lots?buying 2000 sp nifty puts 2000 is little bit difficult to understand, so can you please explain to me? Thank you --
a sub junior member

 

[nautilus]

Closing Price of Nifty futures as on September 2, 2005 Rs.2407.00
Closing Price of SP2340 Put Option as on September 2, 2005 Rs.24.00

Only order that was executed today was a sell order of 100 Nifty futures at a limit of 2405.00

Can some one figure out the profit and loss of the trade so far? If not I will do so later in the weekend.

Regards,

Wastej

I have tried to work out the P&L on the above trade as follows:

Long Puts:

2000 Long puts purchased at 46.00 - closing price 24.00 = Loss of Rs. 44,000.00 (open loss)

Long Futures:

Closed out profit of Rs 11600.00 plus
(2405-2347)x100 = Rs 5800.00 = closed out profit of Rs. 17400.00

plus open profits = (2407-2347)x600 = Rs 36,000

Total profits (closed+open) = Rs 17400 + Rs 36,000 = Rs 53,400
Net profit = Rs 53,400 - Rs 44,000 = Rs 9,400

Open Positions:
Long 2000 puts at 46.00
Long 600 futures at 2347

Please correct if necessary, errors regretted

Nautilus

 

[[email protected]]

Hi Nautilus,

Thank you for posting the profit and loss of the trade. You have done a very good job. I will encourage you to conduct the trade from here on. This will be the best on hand experience.

If you are willing to do so, please let me know, so that I can post all the guidelines on this forum for the entire members to read. Most of the action required has already been posted, but I will do so again, in order to avoid any ambiguity.

Regards,

Wastej

 

[chheda]

Hi WasteJ ,

I will try to conduct the trade from here on . Plz post all the guidelines so that i can follow the trade .

Regards ,

Harish Chheda

 

[[email protected]]

Hi Harish,

I am glad that you are willing to conduct the trade from here on, I will encourage all other traders to come forward and get hand on experience too. No matter how much money you spend, you will not be able to replicate this experience again. I will urge the new traders to come forward now. To every trader, I will provide the guidelines for this trade.

Harish, I would like to know from you, where the Nifty is going to go from here? Please let me know your bias. It is very important for me to know your bias, because trading plan will be tailor made just to suit your bias, so do not hesitate and let me know your bias. Further, if you change your mind about the direction of the nifty, while the trade is in progress, please do let me know that immediately, as I will adjust the trade accordingly. Besides letting me know your bias, also let me know the resistance points and the target points of the Nifty.

I will need the above information from all other traders, who would like to conduct the trade from here on. In return I ask for only one thing, i.e., each trader should post daily development of their trade for others to read.

I think, it will become very interesting forum, where almost every member of Traderji family will start participating in this trade jointly, thus enhancing their learning curve.

Regards,

Wastej

 

[nautilus]

Hi Nautilus,

Thank you for posting the profit and loss of the trade. You have done a very good job. I will encourage you to conduct the trade from here on. This will be the best on hand experience.

If you are willing to do so, please let me know, so that I can post all the guidelines on this forum for the entire members to read. Most of the action required has already been posted, but I will do so again, in order to avoid any ambiguity.

Regards,

Wastej

Hi Wastej

Thank you for your offer. Although I do not have data feeds at the moment (waiting for the feeds and software) I am prepared to follow up on your suggestion.

My short term bias ( 2 t0 3 weeks or earlier) is bearish and the support levels I see on the down side are 2300 and 2250-75.

My longer term bias is bullish and I would not want to hazard a guess on the resistance points as we are in new uncharted territory. But history tells us that when a market is in an uncharted territory the usual resistance points are 50's and 100's - so I would go for 2450, 2500, 2550 etc.

Hope this helps.

Looking forward to an interesting lesson.

Regards
Nautilus

 

[chheda]

Hi Harish,

I am glad that you are willing to conduct the trade from here on, I will encourage all other traders to come forward and get hand on experience too. No matter how much money you spend, you will not be able to replicate this experience again. I will urge the new traders to come forward now. To every trader, I will provide the guidelines for this trade.

Harish, I would like to know from you, where the Nifty is going to go from here? Please let me know your bias. It is very important for me to know your bias, because trading plan will be tailor made just to suit your bias, so do not hesitate and let me know your bias. Further, if you change your mind about the direction of the nifty, while the trade is in progress, please do let me know that immediately, as I will adjust the trade accordingly. Besides letting me know your bias, also let me know the resistance points and the target points of the Nifty.

I will need the above information from all other traders, who would like to conduct the trade from here on. In return I ask for only one thing, i.e., each trader should post daily development of their trade for others to read.

I think, it will become very interesting forum, where almost every member of Traderji family will start participating in this trade jointly, thus enhancing their learning curve.

Regards,

Wastej

Thanks WasteJ ,

I M Bullish on Nifty Future .
Resistance : 2420 , 2445 , 2460-65 , 2500 -2505 .
Support : 2389 , 2370 , 2355 , 2338 , 2318 , 2300 .

Thanks and Regards ,
Haris Chheda

 

[joy_mitali]

Derarest WasteJ,
Great guns-----U r really mindblowing---never everI have seen anyone ready to spend so much energy for the benefit of others---in such a fascinating field---I will not be able to follow hands on(at present momene)--But if u allow me to take part in a mock trade (then I will put on my Biasing views(Do not really plan to interfere on those who r really taking part inthis game--otherwise u have to analyse the biasing of a lot of individuals)---
Regards,
joy_mitali