My FnO Trading Diary - Learning, Discussion, A2As, Trades etc.

msdtime

Active Member
#1
Hi,
I have decided to start studying Options in NF. I am completely new to the Options trading and know very little.

I tried to gather some knowledge from internet etc. esp. about Nifty Options trading strategies, expiry day BNF trading etc. But online resources are very very scarce. At least I couldn't find any resource - book, blog, strategy etc online that can explain the options trading in details.

I have couple of pdfs sourced from NSE and Moneycontrol, which has like tens of options strategies, but main focus is on pay off graphs only.

No where can I find proper guidance, instructions regarding selection of strike price, premium is expensive or cheap, which strikes to choose and which to avoid. How to get out of loosing trades, how to adjust, correct strangle, straddle etc.

Even on traderji, it seems, very few veterans trade in options. And those who trade only post their trades w/o any discussion whatsoever on trading strategies, indicators used etc.

So guys, if you know about any resource from where I can get some knowledge about options trading, please share. It will be much appreciated.
TIA
 

msdtime

Active Member
#2
Here I am copying my couple of posts from other thread.


Another Hilarious fact about Mom's trade today:
1. Not only she mistakenly traded May future.
2. But also she put in a Market order.

Now imagine a market order in an illiquid contract. :hilarious::hilarious:
She got her order filled at 10,453.10.
Zerodha kite is showing exact same price as day's high.
quite an achievement!!!
.
.
Between right now she is insistently arguing with me, how a May fut is moving as same as March fut.. and that there is really no difference in price discovery...you trade march or may, there is really no difference... etc...etc.
:facepalm::facepalm::facepalm:

Remember this earlier post? Mom accidentally bought May Fut instead March expiry then.
Well here is an update.
Initially I thought she would square off the position next day. She didn't.
She continued to wait in false hope of reversals for nearly a week. That could have wiped out complete margin.
So at last on 9 th March, when I came to know of this - she was already in nearly 150 points in loss.
So I hedged her position by buying 10400PE.
Later exited the PE with nearly 13500 profit.





The Nifty May expiry future is still in position. Planning to square off if Nifty shows any sign of correction.





So all in all converted a stupid mistake into whooping 30-35k profits !!!!:cool::cool:
 
#3
Hi,
I have decided to start studying Options in NF. I am completely new to the Options trading and know very little.

I tried to gather some knowledge from internet etc. esp. about Nifty Options trading strategies, expiry day BNF trading etc. But online resources are very very scarce. At least I couldn't find any resource - book, blog, strategy etc online that can explain the options trading in details.

I have couple of pdfs sourced from NSE and Moneycontrol, which has like tens of options strategies, but main focus is on pay off graphs only.

No where can I find proper guidance, instructions regarding selection of strike price, premium is expensive or cheap, which strikes to choose and which to avoid. How to get out of loosing trades, how to adjust, correct strangle, straddle etc.

Even on traderji, it seems, very few veterans trade in options. And those who trade only post their trades w/o any discussion whatsoever on trading strategies, indicators used etc.

So guys, if you know about any resource from where I can get some knowledge about options trading, please share. It will be much appreciated.
TIA
You will find a lot of material here on TJ. Just search a bit and go through various threads.

http://www.traderji.com/community/threads/option-trading-with-danpickup.66266/
 

msdtime

Active Member
#4
Update:
So due to past 3 days my position is down t 15 k again.
Now I want to hedge my May Fut position like I did earlier. But then I had no knowledge of Greeks etc.
So today I have come up with couple of ideas for options trading and hedging.

1. I can buy ATM PE 1 lot like I did earlier.
But then if I couldn't time my exit as before, that will be a catastrophe!!
I would rather then sell next month contract than buying PE.
This will be wasting the gains from future contract on premium, which will then erode with time.
1525615713524.png


Or I can Buy 2 lots of ATM PE to make it delta neutral.
But then that will mean wasting twice a premium.
Also then Nifty must move & expire at least 1% on either side to be profitable.
Edit: It has a fancy name Long Put Synthetic Straddle.

1525616118944.png
 
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msdtime

Active Member
#5
2. Or rather I can Write 2 lots of ATM CE.
Again, a delta neutral strategy aka Short Call Synthetic Straddle.
I can earn 30k premium if May series remain subdued.

1525617328552.png
 
#7
I don't have any knowledge about the option strategies, but I know that writing options takes a lot of margin. I don't know how much you are going to be able to achieve with 15k capital.
 

TraderGYO

Well-Known Member
#8
Hi,
I have decided to start studying Options in NF. I am completely new to the Options trading and know very little.

I tried to gather some knowledge from internet etc. esp. about Nifty Options trading strategies, expiry day BNF trading etc. But online resources are very very scarce. At least I couldn't find any resource - book, blog, strategy etc online that can explain the options trading in details.

I have couple of pdfs sourced from NSE and Moneycontrol, which has like tens of options strategies, but main focus is on pay off graphs only.

No where can I find proper guidance, instructions regarding selection of strike price, premium is expensive or cheap, which strikes to choose and which to avoid. How to get out of loosing trades, how to adjust, correct strangle, straddle etc.

Even on traderji, it seems, very few veterans trade in options. And those who trade only post their trades w/o any discussion whatsoever on trading strategies, indicators used etc.

So guys, if you know about any resource from where I can get some knowledge about options trading, please share. It will be much appreciated.
TIA
https://zerodha.com/varsity/
complete module number 5 and 6 first to get the basics right.
Then,
https://www.youtube.com/playlist?list=PLPVve34yolHYp18r6vDmL8bK2R-OyXzCu
https://www.youtube.com/playlist?list=PLPVve34yolHY43YaBegHMzN9WjrTnQfFr
https://www.youtube.com/playlist?list=PLPVve34yolHZAjbmqn1uYMOtnaAQp3kCO
Go through these to have a better understanding about options strategies.
 
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msdtime

Active Member
#10
Wrote 2 lots of 10600 CE as hedge against old Nifty May Fut long position.
Let us see how this trade pans out from here onwards.

1525674038424.png


1525674198308.png



1525675260900.png
 
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