NIFTY Options Trading by RAJ
- Thread starter healthraj
- Start date
- Tags nifty options chain raj oat
@Amitrandive
Why do you think every strategy fails in range bound markets?
With all my respect to our friendship: This assumption you should correct. How?
The problem is that we do not know clearly in advance the first support - and the first resistance levels who then hold in certain ranges. But as soon as we see them, we can start to implement the first leg and even legs to trade those market. Option and hedge strategies can easily be used for it if understood. Problem in your place again: Huge margin will be needed, as short legs are part of such sometimes very complex trading strategies even with a few different derivatives.
Take care / Dan
Why do you think every strategy fails in range bound markets?
With all my respect to our friendship: This assumption you should correct. How?The problem is that we do not know clearly in advance the first support - and the first resistance levels who then hold in certain ranges. But as soon as we see them, we can start to implement the first leg and even legs to trade those market.
Option and hedge strategies can easily be used for it if understood. Problem in your place again: Huge margin will be needed, as short legs are part of such sometimes very complex trading strategies even with a few different derivatives. Take care / Dan
@Amitrandive
Why do you think every strategy fails in range bound markets? With all my respect to our friendship: This assumption you should correct. How?
The problem is that we do not know clearly in advance the first support - and the first resistance levels who then hold in certain ranges. But as soon as we see them, we can start to implement the first leg and even legs to trade those market. Option and hedge strategies can easily be used for it if understood. Problem in your place again: Huge margin will be needed, as short legs are part of such sometimes very complex trading strategies even with a few different derivatives.
Take care / Dan
Why do you think every strategy fails in range bound markets?
With all my respect to our friendship: This assumption you should correct. How?The problem is that we do not know clearly in advance the first support - and the first resistance levels who then hold in certain ranges. But as soon as we see them, we can start to implement the first leg and even legs to trade those market.
Option and hedge strategies can easily be used for it if understood. Problem in your place again: Huge margin will be needed, as short legs are part of such sometimes very complex trading strategies even with a few different derivatives. Take care / Dan
I agree with you on this regarding support/resistance and stand corrected.
Anyone using trending/breakout strategies will get huge losses.Anyone having trading strategy for sideways market will succeed.
Depends on every person's trading style.Personally I am trading this 200+ range with naked calls and puts at support and resistance levels.
Like you said margin is an issue for other complicated option strategies and also they are beyond my scope of understanding.
I think Last 6 Trading Days Market is going against to Pair Trade Strategy. Today also showing Buy signal from Begining. PE chgoi is increasing from Morning . But Market is down now. .
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Last edited:
I think Last 6 Trading Days Market is going against to Pair Trade Strategy. Today also showing Buy signal from Begining. PE chgoi is increasing from Morning . But Market is down now. .
.
Vijay Bro !!!
If you are going to use charts in such a way then what is the need of pair trading or neutral trading strategy .. ??? in pair trading we don't need charts as much we need for trend trading.. as far as my little understanding is concerned
If you are going to use charts in such a way then what is the need of pair trading or neutral trading strategy .. ??? in pair trading we don't need charts as much we need for trend trading.. as far as my little understanding is concerned
Just my limited understanding of this strategy.
This cannot be absolutely called as
1) Delta
2) Direction Neutral Trading strategy
3) Rupee Neutral.
As the strike to be written keeps changing as per COI.
And strikes are not always equal distant options or approximately equally priced options.
This is more of directional strategy.
Objective is to assess/predict Nifty's likely direction with COI and capture short term price movements of Nifty Options.
But/And also have added advantage of theta decay and earn premium if markets remains in sideways.
So trade can be taken only if Price confirms what COI indicates or no trade.And that's what VJAY intends to say I guess.
XRAY Bro,
Just my limited understanding of this strategy.
This cannot be absolutely called as
1) Delta
2) Direction Neutral Trading strategy
3) Rupee Neutral.
As the strike to be written keeps changing as per COI.
And strikes are not always equal distant options or approximately equally priced options.
This is more of directional strategy.
Objective is to assess/predict Nifty's likely direction with COI and capture short term price movements of Nifty Options.
But/And also have added advantage of theta decay and earn premium if markets remains in sideways.
So trade can be taken only if Price confirms what COI indicates or no trade.And that's what VJAY intends to say I guess.[/QUOTE]
Exactly jagan...I seen even one Strike entered when abv 10+Lac OI still that pair not make profit ...it gone loss trade....if we use chart for finetune entry then almost it not given @least loss even market gone opposit direction..after all am too newbie in options..biginner...few views only after just watching few weeks movements
Just my limited understanding of this strategy.
This cannot be absolutely called as
1) Delta
2) Direction Neutral Trading strategy
3) Rupee Neutral.
As the strike to be written keeps changing as per COI.
And strikes are not always equal distant options or approximately equally priced options.
This is more of directional strategy.
Objective is to assess/predict Nifty's likely direction with COI and capture short term price movements of Nifty Options.
But/And also have added advantage of theta decay and earn premium if markets remains in sideways.
So trade can be taken only if Price confirms what COI indicates or no trade.And that's what VJAY intends to say I guess.[/QUOTE]
Exactly jagan
...I seen even one Strike entered when abv 10+Lac OI still that pair not make profit ...it gone loss trade....if we use chart for finetune entry then almost it not given @least loss even market gone opposit direction..after all am too newbie in options..biginner...few views only after just watching few weeks movements
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