GOOD PROFIT: Hedged nifty positions with straddle...

[linkon7]

bought at4422, covered at 4422.5, points gained 0.5, -2 as brokerage, net gain of -1.5 points
bought at4434, covered at 4467, points gained 33, -2 as brokerage, net gain of 31 points
bought at4469.5, covered at 4445, points gained -24.5, -2 as brokerage, net gain of -26.5 points
bought at4476, covered at 4480, points gained 4, -2 as brokerage, net gain of 2 points

 

[linkon7]

Too hi-fi...

Where did you learn all this? Rather where can I learn all this? I'm find it hard to understand your explanation itself let alone the strategy :lol:

Making money in this market is never easy. and add options to the equation, and things get even more complicated. Another 2-3 months and hopefully, you'll understand the strategy. Google options and you'll find plenty of info...

 

[linkon7]

The Indian market outperformed its Asian peers and saw a spectacular session of trade today. Today's rally was led by technology stocks mainly by TCS, post its good results (TCS market capital hit Rs 1 lakh crore in trade today). Experts believe the turnaround in global markets has helped our market rally as well. Sensex shut shop at 15191, up 446 points and Nifty at 4502, up 127 points from the previous close. CNX Midcap index was up 2.74% and BSE Smallcap index was up 2.52%. The market breadth was positive with advances at 918 against declines of 323 on the NSE. Top Nifty gainers included TCS, HCL Technologies and Unitech while the losers were ITC, Suzlon and Reliance Infrastructure.

 

[Xaero]

Guys, I have shorted 4400 straddle for a net premium of 400 points. since we are close to 4400, i didnt take any position in NF. Expect to do so on Monday.
The lower break even point 4000 and the upper breakeven point is 4800. I think its a very safe range. I should be able to gain 400 points by mid August.

scrip	       	  cost 	 present 	 diff 	         profit/loss 	
4400 CE	 	200.00 	 203.00 	 (3.00)		 (300.00)	
4400 PE	 	200.00 	 203.00 	 (3.00)		 (300.00)	
Nifty Fut	4,397.00  4,397.00 	 -   	 -   	
					
					
			                     Total = 	 (600.00)

The position of the nifty straddle as of end of 17th July2009

Script
4400 CE bought at 200 has a current price of Rs. 203 is at a loss of Rs. -300
4400 PE bought at 200 has a current price of Rs. 203 is at a loss of Rs.-300
Nifty Futures long / short not initiated as we were too close to the mean.

Total = loss of Rs. -600


Statistics

Cost of the straddle = 400.00
present price of the straddle = 406.00
Actual value of the straddle = 3.00
profit on straddle = (6.00)
Profit on nifty = -

total profit = (6.00)

Are these two different strategies? It looks like that to be because you mentioned selling in one and buying in another.

 

[linkon7]

Are these two different strategies? It looks like that to be because you mentioned selling in one and buying in another.

For someone who doesnt understand the strategy, you seem to follow it very well. It's shorted not bought. typo again...congrats...! you are inching towards getting it right....:clap:

 

[Xaero]

Can someone reply to this:

Could you clarify somethin for me.

Can you place stop loss for options like you do for stocks?
I have the order form as shown below.

I have the June 4500 call selected. Now if I wanted to place a SL for the 4500 ce I can just place a trigger price and leave the price field empty to place a SL (the screenie is of buy but I know I will need to do it in sell form).

Another question is on my terminal it shows that the %chg for the 4500CE is 70%+ prev close 56.9 and LTP 96 odd does that mean:
if I had bought the 4500CE on friday I would have to pay 2845/lot and could sell it now for Rs.4800? That would be a 70% profit before costs, right?

 

[MurAtt]

Re SL, you have to place Trigger Price and then Sell Price, same for buy also i.e. say u want to buy RIL above 2260, so your trigger should be 2261 and price should be say 2265 or 67 --- then when the price is triggered buy/sell order is placed by you service provider.
Similarly sell price will be lower than trigger price.

 

[MurAtt]

Re yr second question -- Bingo

 

[linkon7]

CUES--

--Nifty July future premium increased to 8 points so cost of carry increased.
--Nifty open interest decreased by 0.3 lacs suggests short covering. (Total OI now at 2.39cr)
--Nifty calls shed 7 lacs and puts added 24 lacs in open interest.
--Nifty open interest put-call ratio is at 1.23.
--4300 puts had open interest of 46 lacs and 4700 calls had open interest of 35 lacs, so 4300 and 4700 will be important levels to watch for.
--India VIX closed at 36.97, increased by 3% suggests instability.

 

[lazytrader]

deleted post ....