How to trade Butterflys and Condors with nifty future options?

#2
I have never done it, but have thought about it a lot. I have also did a lot of calculation with it on a frequent basis.

IMHO, a typical 100+100 span butterfly costs between 15-20 Rs. Trading in it will make you 2 bucks at the most. It will unnecessarily block huge margin. Remember, for every butterfly ther are two WRITES.

A good strategy I think would be to see if you can get a butterfly below 10 bucks. If you can, then buy and hold to expiry.

I am a newbie, so take my ideas with caution.
 

Taurus1

Well-Known Member
#3

PGDIMES

Well-Known Member
#4
Not economically viable (actually impractical) considering the current rules applicable for options... the short side in any options in India require the full margin money as that of 1 future contract... the exchanges do not consider any strategy other than long or short in options. To create a bull spread in nifty which costs say, 20 bucks (or 1000 bucks in total as 1 contract=50 units), one need to keep margin of about 26,000-28,000 bucks...

:rofl::rofl::rofl::rofl::rofl:
 

rkkarnani

Well-Known Member
#6
Wow, how stupid these people must be.
PGDIMES is probably been told so by his brokers. NSE does consider Spreads for margines in Options and not merely Long and Short. Yes the brokers will ask for FULL margine and considers Long and Short only. Check it out on NSE Site please!! It should be under NSCCL link.
 

Taurus1

Well-Known Member
#7

DanPickUp

Well-Known Member
#8
Hi Dan,
Lets say your opinion up/down for the Nifty is the same as for the SPY.

Which butterfly is your choice if you entered the trade on Friday? Want to see how you adjust the position in the volat ahead. :)
http://www.nseindia.com/marketinfo/...strument=-&date=-&segmentLink=5&symbolCount=2
Hi Taurus

I posted many times in this forum that when you trade more complicated option strategies, you have to leg in. Means: You do not just place a whole butterfly or condor at once and then adjust it. Only newbies and not experienced option trader trade like that.

You start with one leg and then you leg in with the other legs. In that way, you are much more flexible. You do your analyses about the market before you make the first leg. Then you enter and you have your fixed targets.

Your first target must bring you over the zero line and if this is not the case, then you have to get the money you need to come over the zero line. I also already posted that in the past how to do.

I even posted in AW10 thread a whole strategy how to trade a condor with nearly no cost. It can be fine tuned, but some work you have to do by your self.

Tc

DanPickUp
 

Taurus1

Well-Known Member
#9
Most of my option trades are purely directional, almost nil experience with butterflys/condors/spreads.
Why not do a few live trades on an EOD basis on this thread, they will surely be appreciated by all. :hap2:
 

IAtma

Well-Known Member
#10
Dan bro,

I need ur little help.


m not sure I m putting a valid question or not........:(

I am little-bitt confuse......as Open Interest is the total number of outstanding contracts that are held by market participants at the end of the day ......,so if the contract is closed/over, it should be zero.....whereas NSE is showing is :

http://www.nse-india.com/live_market...segmentLink=17

is there some prob with my understanding or something else.......?:confused:
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?