Nifty Options Vertical Spread Trading

[ananths]

Like it...!

My Debit Spread (Call Backspread) Is CE6100/CE6200 @106 / 61 for February.
(It is my first WRITING Strategy, Lets see...)

Hi adg,

Call back spread is a bullish strategy with 1 lot 6100CE short and 2 lots 6200CE long.
What is your target and SL ?

Is time value(theta) against this strategy?

I exited call debit spread because I feel market is bearish. Unless market closes above 6150, I wont go for any bullish position.

I'm thinking of a put debit spread/put back spread/Naked 5800PE for next week.

No need to change your view based on my comments here..I'm not an expert to advice.

@Adg123

Your post is very confusing to read, as you completely mix up different strategies. You talk at the same time about three different strategies in just one sentence. Let me help you and let's clear up the mess you put on the table. Let's do it step by step. I will start with your debit spread, then let's look at the call back spread and finally at the writing strategy.

Here a Debit Call Spread which is f.e long one atm option and short one otm option. It looks like this: http://www.optionseducation.org/strategies_advanced_concepts/strategies/bull_call_spread.html and market should go up when using this strategy.

Here a Call Backspread which is f.e long one atm option and short two otm options. It looks like this: http://www.optionsplaybook.com/option-strategies/call-backspread/ and market must move up. If market stays in a side way range, you will lose the most and if market plums you are protected.

And here the last one of your three strategies you described as a writing strategy. This strategy is called Credit Call Spread which is f.e short one atm option and long one otm option. It looks like this http://www.optionseducation.org/strategies_advanced_concepts/strategies/bear_call_spread.html and market should go down when using this strategy.

Now we have a clean table and every strategy has found his place in a separate plate.

Yes. The position is not very clear. I took it as call back spread. Thanks for putting all the possible strategies from the post. I feel you have a typo there. For call back spread it should be ATM short and OTM long with 1:2 ratio otherwise it becomes a ratio spread.

@adg,

If you post your position here we can name it or you should be able to name it correctly if you read Somatung's post. :thumb:

Cheers / Ananth

 

[Somatung]

Yes. The position is not very clear. I took it as call back spread. Thanks for putting all the possible strategies from the post. I feel you have a typo there. For call back spread it should be ATM short and OTM long with 1:2 ratio otherwise it becomes a ratio spread.

@adg,

If you post your position here we can name it or you should be able to name it correctly if you read Somatung's post. :thumb:

Cheers / Ananth

Yeap, thanks. Changed it in the original post. :thumb:

 

[adg123]

Yes. The position is not very clear. I took it as call back spread. Thanks for putting all the possible strategies from the post. I feel you have a typo there. For call back spread it should be ATM short and OTM long with 1:2 ratio otherwise it becomes a ratio spread.

@adg,

If you post your position here we can name it or you should be able to name it correctly if you read Somatung's post. :thumb:

Cheers / Ananth

Hi, Thanks to all for pointing out my error, I am a learner in OPTION trading and learning a lot from seniors like you all.

Actually, It was a RATIO SPREAD rather CALL BACK SPREAD, because (shorted) Leg was slightly OTM at the time of trade instead of ITM.

Presently I am in slight Loss, but I am somehow confident to get profit within whole series. Strong support is seen at PE6000 and 13L shares are added in last trading day. Resistance 6300 and MAX PAIN at 6100.

Election is ahead, market must be bullish.

Of course, my initial target is Nifty 6250 and no certain SL at present.

If market fall beyond 6050, I would take naked ITM Put with 5% SL as per market condition.

 

[ananths]

Hi, Thanks to all for pointing out my error, I am a learner in OPTION trading and learning a lot from seniors like you all.

Actually, It was a RATIO SPREAD rather CALL BACK SPREAD, because (shorted) Leg was slightly OTM at the time of trade instead of ITM.

Strategy name is not based on whether you selected ITM or OTM. Its based on what you bot and what you sold and how many lots. Thats what I was expecting you to post

Presently I am in slight Loss, but I am somehow confident to get profit within whole series. Strong support is seen at PE6000 and 13L shares are added in last trading day. Resistance 6300 and MAX PAIN at 6100.

Election is ahead, market must be bullish.
You cant say this so early to election. Actually before election the govt would announce many populous schemes which would impact the economy badly. It would be very volatile before election and taking position this month itself may not give expected benefit of election result

Of course, my initial target is Nifty 6250 and no certain SL at present.

If market fall beyond 6050, I would take naked ITM Put with 5% SL as per market condition.

My comments inline.

 

[ananths]

Holding put debit spread 5900pe/5800PE at a cost of 23.

India VIX has increased by 8%. 6000PE has highest OI. If big support 5970-80 is broken, this spread should give good return.

 

[munde_77]

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[pakatil]

Hi Munde,

Pls do not spam all threads.

Fyi.......your web page for option oracle.........throwing page not found error.....

 

[munde_77]

. .

 

[pakatil]

http://www.marketcalls.in/softwares/working-solution-options-oracle.html

this wld be correct address

 

[pakatil]

Mr. Munde,

At least in this thread Option Oracle Screen shots have been posted many times.