Karthik's OPTION Trading Strategy!

karthik_sri

Well-Known Member
#1
I have started this thread to share my strategy on NIFTY Options. The strategy is very simple without any indicator and just price movement. I am still learning Options and I don't know much technicalities in Option's method as Professional Trader's user in their language:D

Will post my method and strategy in the coming threads.

Karthik
 

umeshmandal

Well-Known Member
#2
I have started this thread to share my strategy on NIFTY Options. The strategy is very simple without any indicator and just price movement. I am still learning Options and I don't know much technicalities in Option's method as Professional Trader's user in their language:D

Will post my method and strategy in the coming threads. :thumb:

Karthik
Really really look forward to it !
 

karthik_sri

Well-Known Member
#3
The strategy is for Intra day trading and I have not started using it in the Real Time market. But yes I have analysed the data over months and find it very good which I thought will share you.

The Method

1). EOD Price of NIFTY Futures (1st month) to identify High/Low of a day (Pls note not Spot or Index)
2). Note down the nearest Call Option Strike Price for High & nearest Put Option Strike Price for Low. The base for this is the EOD High Low of Nifty Future 1st month Contract
3). The next day plot 5 min Intra day chart of Nifty Future & parallelly plot 5 min Intra day chart of Call & Put to monitor movement.
4). Wait and watch the price action of Nifty Future 5 min Candle/Bar from 9.15am to 11.00 am
5). Mark High & Low price of 9.15am to 11.00am
6). Wait for a 5 min Candle to completely close above or below the High/Low of the time frame
7). If the 5 min candle/bar breaches the High and closed above the High price of the time frame then look into the chart of Call Option the same time frame where the candle breached the High price in 5 min futures chart. Place the buy order at the High price
8). If the 5 min candle/bar breaches the Low and closed below the Low price of the time frame then look into the chart of Put Option the same time frame where the candle breached the Low price in 5 min futures chart. Place the buy order at the High price
9). The target is Rs.10/- in case of the buy price is above Rs.50/- and the Target is Rs.5/- in case of the buy price is below Rs.50/- This is just my observation and you can keep some % as profit to exit basis the entry price. Say 5% or 10% margin.
10). SL is the entry candle/bar Low price.

The Lots

1). Initially we will be buying 4 lots which means 1 Lot has 25 qty and thus 4 lots is 100 in qty and every Re.1/- movement will give us Rs.100/-
2). In case the buy price is less than Rs.50/- increase the lot size to 8 so that qty is 200

All the above will be confusing right now and will not register but I will take you through the Charts to make this simple:)

Karthik
 

karthik_sri

Well-Known Member
#4
I have posted 18.06.15 Trade of NIFTY Options...

1). The below is the EOD chart Nifty Futures 1 month contract where I have marked 17th Jun'15 EOD price. There is no specific reason to select 17th:)



2). The 5 min Nifty Futures chart of 18.06.15 and necessary rule in the chart updated for understanding.



3). The 5 min Nifty Call Option Strike price 8200 5 min Intraday Chart with Entry and Exit



If 8 lots traded the profit would be Rs.1000/-:)

Karthik
 

karthik_sri

Well-Known Member
#5
The Nifty Option Trade of 22.06.15
Nifty Futures 1 month contract High / Low of 21.06.15
High : 8250.25 (Look for Call Strike of 8300)
Low : 8181.00 (Look for Put Strike of 8100)

1). Nifty Futures 5 min Intraday movement on 22.06.15 with trade comments



2). Nifty Call Option 8300 5 Min Intraday movement on 22.06.15 with Entry & Exit



If traded with 4 lots Rs.1000/- profit minimum:) and thereafter it made an High of Rs.94.10 on that day!:clapping:
 

umeshmandal

Well-Known Member
#8
Karthik, Please dont see this post as finding fault, genuinely seeking a clarification. Maybe its something silly so dont wish to be percieved as a "Thread Stopper" ! :p
Why 12:54??? I know its the time when the previous day's high was breached and also a candle closed above at that time!

Why 12:54, why not 12:55 when its a 5 minute chart? :confused:
 

karthik_sri

Well-Known Member
#10
Karthik, Please dont see this post as finding fault, genuinely seeking a clarification. Maybe its something silly so dont wish to be percieved as a "Thread Stopper" ! :p
Why 12:54??? I know its the time when the previous day's high was breached and also a candle closed above at that time!

Why 12:54, why not 12:55 when its a 5 minute chart? :confused:
Umesh, that is Amibroker setting as I have plotted 5 min Intraday chart only...let me findout from the setting...
 

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