General Trading Chat

[amitrandive]

Its totally wrong 2 blame a company as a whole fr d underperformance while ignoring d full picture wch in dis case is d OIL n GAS sector.
Just consider d fact dat d BSE OIL n GAS index touched a high of around 14000 in d yer 2008 while currently its quoting at around 9500. Even other biggies like ONGC,CAIRN,OIL,GAIL,PETRONET etc r in line wid RIL.Its only bcoz d stock was a glamour game of ystr years dat one tends 2 focus solely on its vulnerability compared 2 its peers while though its a matter of concern fr nt rewarding its shareholders.

We are investors and when the company does not perform for years, we instead of sympathising with the sector it is in etc...we vote with our feet that means we get out of that company and move to other companies which are performing in the market....that is what we are supposed to do....

I had a large chunk of RIL shares few thousand shares...but shifted from RIL to TCS,Asian Paints...axis bank....which outperformed the index.

Smart_trade

A picture speaks a thousand words .

 

[sudoku1]

day traders will get worn out if time gets increased to 5pm from current closing time for indian stock exchanges.:lol:

sm day traders get on d trading desk in a worn out condition :-D

 

[nifty trade]

good way to use ATR .

kindly guys share ,how do you use it too..

thanks

https://www.youtube.com/watch?v=MxaeeJGS_sc

any way to get playing youtube videos in thread ?

 

[Jai Mata Di]

Just a simple observation.. :lol:

Just 4 week ago (22nd april) nifty was nearly same level like today.
8400 CE was around Rs 240 then, today only Rs 90.
150 point premiums decreased out of Rs 240 due to time decay(mainly) in 4 weeks. This shows why option buyers ultimately struggle to making profit in the long run.

Unless very experienced trader who can spot the trend clearly most of times (not always possible) option buying is actually injurious to traders health.

Best Wishes & Happy Trading.
H.C.

 

[raul12]

Just a simple observation.. :lol:

Just 4 week ago (22nd april) nifty was nearly same level like today.
8400 CE was around Rs 240 then, today only Rs 90.
150 point premiums decreased out of Rs 240 due to time decay(mainly) in 4 weeks. This shows why option buyers ultimately struggle to making profit in the long run.

Unless very experienced trader who can spot the trend clearly most of times (not always possible) option buying is actually injurious to traders health.

Best Wishes & Happy Trading.
H.C.

Dear Jai Mata Di,

In that case what is better.... Option selling? But what about the risks?

Bcoz option buyers have limited loss unlike option sellers who have unlimited loss potential.

PS: I'm a beginner in options. Pls bear with me here, if you feel my query is too basic

 

[nirav_j]

Just a simple observation.. :lol:

Just 4 week ago (22nd april) nifty was nearly same level like today.
8400 CE was around Rs 240 then, today only Rs 90.
150 point premiums decreased out of Rs 240 due to time decay(mainly) in 4 weeks. This shows why option buyers ultimately struggle to making profit in the long run.

Unless very experienced trader who can spot the trend clearly most of times (not always possible) option buying is actually injurious to traders health.

Best Wishes & Happy Trading.
H.C.

I've been paper trading option selling for the past 2 series. selling equal qty CE and PE, same nifty strike, nearby spot value and adjusting position every 100 points.

Its not that difficult to make about 100 points. Buying works only when MKT is in a strong trend and gives spectacular returns. Selling still makes money in such Trends, albeit at a very lesser pace. but over a long time curve, the Risk reward of Option writing makes it very very tempting.Only thing needed is a large/er A/c size to see respectable money ..

For current May series, Id opened a paper trade @ 310 premium of 8250 strike.
Made about 120 points till today on it, with 8400 pair open @ 160.

last series too, was able to make about 100 points after opening a pair @ 240and taking a 30 point hit ...

Planning to go live from June series .. :thumb:

 

[newuser_RK]

How do you adjust the position as 100 points movement happens in 10 mins these days....

 

[oilman5]

Just a simple observation.. :lol:

Just 4 week ago (22nd april) nifty was nearly same level like today.
8400 CE was around Rs 240 then, today only Rs 90.
150 point premiums decreased out of Rs 240 due to time decay(mainly) in 4 weeks. This shows why option buyers ultimately struggle to making profit in the long run.

Unless very experienced trader who can spot the trend clearly most of times (not always possible) option buying is actually injurious to traders health.

Best Wishes & Happy Trading.
H.C.

...........................................................
nice observation.It means down chance is limited as per option data.
I have very limited option trading experience,and plan to switch to full fledged optiontrader.
Yes writing option hit rate is high, buy option % wise less time u r right.
As per theory of lie,- option risk is limited to expiry . Always 1st judge scenario & ur view with strong conviction, reward analysis + rollover to open other leg . Pl study very well pay off curve legwise,its critical.
AW10- rightly said start with debit spread. Somatung 1st clarified= DEFINE WHAT TYPE OPTION TRADER U WANT TO BE? COLLECT MATERIAL,ATTITUDE & see same syncronisation in present market - otherwise dont come.
clarity -maturity -familiarity to implement is motto here.
Note: i use option for directional trade,as well as option writing, i do it naked.BUT DONT SUGGEST OTHERS TO DO.recently taken advance option training through BSE,finideas ,and studying OTA CD/DVD fullcourse since 1yr.
As practical situation i see,simply apply -yes it gives money to me.
Pratap & ST also use option very well

 

[nirav_j]

How do you adjust the position as 100 points movement happens in 10 mins these days....

Not that difficult to punch 2 buy orders and consequently 2 sell orders when position needs to be moved to a different strike. I have a preference for MKT orders to ensure that I get my fill..

 

[Smart_trade]

Just a simple observation.. :lol:

Just 4 week ago (22nd april) nifty was nearly same level like today.
8400 CE was around Rs 240 then, today only Rs 90.
150 point premiums decreased out of Rs 240 due to time decay(mainly) in 4 weeks. This shows why option buyers ultimately struggle to making profit in the long run.

Unless very experienced trader who can spot the trend clearly most of times (not always possible) option buying is actually injurious to traders health.

Best Wishes & Happy Trading.
H.C.

If our view is that the market will remain sideways in the range of +/- 250-300 points ,then selling straddle will work...but if we get a trend move of 300 points and above with large volatility , then managing straddle becomes bit tricky.

Option buyers struggle to make profits because they use option buying in wrong way. Option is a wasting asset and the buyer must not stay "invested " in options .Option is a trade not an investment...it is like getting a bycycle on rent for doing our city work....accumulate all the work, make sure no rains, rent the cycle, finish the work in one day and return the cycle...dont keep it for a month paying the rent.Spot the trend, buy options...and get out when the trend slows down so that we have minimum time decay and maximum price advantage.

Smart_trade