General Trading Chat

[Smart_trade]

Sir, Please oblige us when you get in mood of reminiscing your old learning days...

I will not be doing that because such writings will bring plenty of negative vibes suck as jealousy,hatred and also undue importance to personality and I feel principles are more important than personalities...

I don't want any such negativity .

Smart_trade

 

[blackberry]

I will not be doing that because such writings will bring plenty of negative vibes suck as jealousy,hatred and also undue importance to a person and I feel principles are more important than personalities...

I don't want any such negativity .

Smart_trade

Good one...

kehte hein na log apne dukh ke bajaye doosro ke sukh se dukhi hote hein...

So it is wise to keep silent...

 

[jain.er]

Can someone help me learn how to manage a loosing ratio spread.

For example: Bear ratio put spread

Buy 1 lots 7400 PE

Sell 2 lots 7100 PE

Say a net debit of 30 points.

Now market moves up and now I am getting only 10 points a loss of say 20 points.

Or for that matter market moves down and I am loosing

How to adjust this trade

 

[Smart_trade]

Can someone help me learn how to manage a loosing ratio spread.

For example: Bear ratio put spread

Buy 1 lots 7400 PE

Sell 2 lots 7100 PE

Say a net debit of 30 points.

Now market moves up and now I am getting only 10 points a loss of say 20 points.

Or for that matter market moves down and I am loosing

How to adjust this trade

I won't think of any adjustment till market moves 200 points in either direction up or down.

Smart_trade

 

[TraderRavi]

Good one...

kehte hein na log apne dukh ke bajaye doosro ke sukh se dukhi hote hein...

So it is wise to keep silent...

haha true :lol:

 

[traderniftybank]

FOMC leaves interest rates unchanged, one month after historic rate hike

 

[XRAY27]

Max Pain

Nifty: 7500

Nifty Bank: 15500

 

[jain.er]

I won't think of any adjustment till market moves 200 points in either direction up or down.

Smart_trade

Great.. so that means if market falls by 200 than most probably we are in profits so no tension ,but if market goes up by 200 points the following adjustments could be made:

Say market rises upto 7700, than either of the following

1. Sell 7400 PE and let 7100 PE expire worthless (or buy close to worthless). Most likely you will be at BE

2. Buy back 7100 PE and sell 7300 PE and let 7400 PE position as it is. The new BE will be 7200. Most likely market wont revert from 7700 back to 7200, even if it were to it will need some time to do that, till than it would be close to expiry.

Else another adjustment....

 

[XRAY27]

Some important results today and tomorrow

 

[copypasteaee]

Great.. so that means if market falls by 200 than most probably we are in profits so no tension ,but if market goes up by 200 points the following adjustments could be made:

Say market rises upto 7700, than either of the following

1. Sell 7400 PE and let 7100 PE expire worthless (or buy close to worthless). Most likely you will be at BE

2. Buy back 7100 PE and sell 7300 PE and let 7400 PE position as it is. The new BE will be 7200. Most likely market wont revert from 7700 back to 7200, even if it were to it will need some time to do that, till than it would be close to expiry.

Else another adjustment....

read the spreads thread from AW10, you will get to read much more on spreads and their adjustments.