NIFTY Options Trading - Intraday

raj_hpking

Well-Known Member
#1
Hi All,

I know there are number of threads with same title. But here I want to tell my experience and seeking help.

I am doing equity trading (positional) from 2009 but I recently started NIFTY options intraday and currency trading USDINR/EURINR. But not successful. I already lost 30% capital.

Below is my today's experience about NIFTY Options intraday.

  • I have bought NIFTY options 8650CE with price 75.90 at 9:23 AM with target 80 and stop loss at 70. My stop loss triggered at 9:38 AM.
  • Seeing NIFTY going down I bought 8550PE with price 56 at 9:43 AM with target 60 and stop loss 50. Even NIFTY was not going up or down much, options was fluctuating at down side and my put got sold by stop loss at price 50 at 10:03 AM.
  • Same way doing currency futures also, but losses are less compared with options trading. Any currency strategy will be also helpful. But not sure if any indicator will work with currency as it is less volatile at least USDINR.


I am doing good with Equity positional trading. But I want to do intraday options and currency trading. Not sure what I am doing wrong here? How do you decide whether to buy Call or Put and what strike price to choose. Any suggestion, strategy would be greatly appreciated by senior members.
 
#2
Better u also take positional trades on nifty options.
As u wud have seen nifty is volatile during the day and your 5 to 10 points stop loss can be hit easily.

For techniques u can see other threads here about different options strategies.
 

anilnegi

Well-Known Member
#3
Hi All,

I know there are number of threads with same title. But here I want to tell my experience and seeking help.

I am doing equity trading (positional) from 2009 but I recently started NIFTY options intraday and currency trading USDINR/EURINR. But not successful. I already lost 30% capital.

Below is my today's experience about NIFTY Options intraday.

  • I have bought NIFTY options 8650CE with price 75.90 at 9:23 AM with target 80 and stop loss at 70. My stop loss triggered at 9:38 AM.
  • Seeing NIFTY going down I bought 8550PE with price 56 at 9:43 AM with target 60 and stop loss 50. Even NIFTY was not going up or down much, options was fluctuating at down side and my put got sold by stop loss at price 50 at 10:03 AM.
  • Same way doing currency futures also, but losses are less compared with options trading. Any currency strategy will be also helpful. But not sure if any indicator will work with currency as it is less volatile at least USDINR.


I am doing good with Equity positional trading. But I want to do intraday options and currency trading. Not sure what I am doing wrong here? How do you decide whether to buy Call or Put and what strike price to choose. Any suggestion, strategy would be greatly appreciated by senior members.
Why dont u make a thread with your positional trade, believe me in intraday u will only burn your hands and with option its really a money sucker if u dont keep proper sl

thanks
 
#4
hello
is any one here know if nifty up 10 point so at tht same strike price call up how many point?.... strike price is near nifty fut. price... if nifty fut up from 8580 8590 at tht time 8600 call of same month how many point up? i tried it but cant find it so i ask this........... coz i like to trade in call put for intraday like nifty fut trade intra..
 

ybha

New Member
#5
hello
is any one here know if nifty up 10 point so at tht same strike price call up how many point?.... strike price is near nifty fut. price... if nifty fut up from 8580 8590 at tht time 8600 call of same month how many point up? i tried it but cant find it so i ask this........... coz i like to trade in call put for intraday like nifty fut trade intra..
It's depend on delta. first understand Option greek OR Download Option Greek calculator and then calculate option prices.

Thanks.
 

jagankris

Well-Known Member
#7
hello
is any one here know if nifty up 10 point so at tht same strike price call up how many point?....
hi..
thx...

plz clear me wts called delta? and option greek ? and from where i can download option greek calculator?
Delta is the price movement of Nifty options corresponding to Nifty.
Say for every 10 points Nifty movement if the Option price moves - 7 points then the delta is 0.7.
ITM options will have greater delta.
OTM will have less delta.
Delta depends upon the strike/implied volatility and no of days to expiry..

http://zerodha.com/z-connect/querie...ption-greeks/how-to-use-the-option-calculator

Theoretical value could be different from actual.
 

raj_hpking

Well-Known Member
#8
Better u also take positional trades on nifty options.
As u wud have seen nifty is volatile during the day and your 5 to 10 points stop loss can be hit easily.

For techniques u can see other threads here about different options strategies.
Well said Nilesh. I started Options positional trading and result is much better than intraday options trading. But, I have few things that needs to be cleared, like greek, time decay. I am not understanding how premium (strike price) is reduced as time approached contract last date.
 
#9
Well said Nilesh. I started Options positional trading and result is much better than intraday options trading. But, I have few things that needs to be cleared, like greek, time decay. I am not understanding how premium (strike price) is reduced as time approached contract last date.
Raj for all the options knowledge u can refer the posts here which have explained everything u need to know as a beginner.

Also would suggest not to invest heavily in options without having clear understanding of basics since it can be risky

Only clearing the part u have asked but need to learn a lot other than this.
Ur premium price consists of intrinsic as well as time value.

Consider, current nifty spot price is 8450.
Nifty 8500 CE is priced at 100 then 50 is intrinsic value (8500-8450) and the rest 50 is the time value since there are 30 days to expiry and probability of increase in price. So ur paying a premium of 50 rs. Now even if at expiry nifty is at 8500 still ur at loss since the time value will decrease on daily basis till it becomes zero.

hope this gives u some basic idea. And there are lot concepts related to this.
Refer the other threads here.

All the best :) :thumb:
 

raj_hpking

Well-Known Member
#10
Raj for all the options knowledge u can refer the posts here which have explained everything u need to know as a beginner.

Also would suggest not to invest heavily in options without having clear understanding of basics since it can be risky

Only clearing the part u have asked but need to learn a lot other than this.
Ur premium price consists of intrinsic as well as time value.

Consider, current nifty spot price is 8450.
Nifty 8500 CE is priced at 100 then 50 is intrinsic value (8500-8450) and the rest 50 is the time value since there are 30 days to expiry and probability of increase in price. So ur paying a premium of 50 rs. Now even if at expiry nifty is at 8500 still ur at loss since the time value will decrease on daily basis till it becomes zero.

hope this gives u some basic idea. And there are lot concepts related to this.
Refer the other threads here.

All the best :) :thumb:
Thanks a lot sir. I was going through this forum and also searched on google about greek and time decay. I got few links where they were talking about Delta, Theta..... But I am not getting clear article that mentions what is the perfect time to buy options at particular premium. And also, due to time decay, premium value decreases then is it true that we should clear position after premium value increases than our buy value, without keeping it for long time. I hope only Greek and time decay make effects on option's premium, or there are more that I need to learn?

If you know any thread which can help me, please post here link. Thanks.
 

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