Nifty Options Vertical Spread Trading

pakatil

Well-Known Member
#41
I hv always been a Futs Trader. Real zero in options. This was suggested by my frnd. Am trading it simply bcz of impressive RR. :D
 
#44
in debit spread we can reduce the loss...like in this case... 5500pe/5600pe debit spread..if we see mkt going on other side... let it be..
simply sell.. 5400 pe... otms...reverse for calls.
Ex today we entered put with 29 debit spread..if nf move up from support..level means above 5650.. simply sell 5400 pe..and hold on the trade.. and get 10 points on every whipshaw. if mkt range bound you may get .. 40-50 points in a week. without fear of loss.
 

DanPickUp

Well-Known Member
#45
in debit spread we can reduce the loss...like in this case... 5500pe/5600pe debit spread..if we see mkt going on other side... let it be..
simply sell.. 5400 pe... otms...reverse for calls.
Ex today we entered put with 29 debit spread..if nf move up from support..level means above 5650.. simply sell 5400 pe..and hold on the trade.. and get 10 points on every whipshaw. if mkt range bound you may get .. 40-50 points in a week. without fear of loss.
I think you can improve your idea now as I heard that nifty will come up with options on each 50 point strike level starting in September. Now how to use that option strike levels for whipsaw trading with your mentioned debit spread?
 

DanPickUp

Well-Known Member
#48
Gr8...SL may not be required for such OTM options spread..you might have chosen OTM based on the trend..however I just had one query, when we play spread with OTM options I thought its better to trade Credit spread instead of Debit spread because we will get time value benefit because if market consolidates we will lose the value of the long leg....what you say?
@Ananths

It seems you do well with your spread trading. :clapping: If you do not mind I allow my self to post two links in your thread which are related to spread trading. The first is an article about debit spreads. After the article a very profound discussion starts about pro and contra on otm or itm / high vola or low vola / put or call debit spreads or credit spreads. Many questions asked and answered and compared with each other. Extremely informative for lovers of spreads or for those who want to learn and know more about those spreads without reading a whole thread or writing for hours. Here it goes:

http://www.1option.com/index.php/global/comments/the_problem_with_debit_spreads/

The next link is a discussion about how to set a stop loss on credit spreads. Also here: After the article a very nice discussion about the subject:

http://www.1option.com/index.php?/a...t_spreads_where_should_i_place_the_stop_loss/

Enjoy / DanPickUp
 
#49
Closed yesterdays position,
5600PE/5500PE @ 156/105

Total 20points profit per lot.

Lets wait for next opportunity.
:thumb::thumb::thumb::thumb:
 

ananths

Well-Known Member
#50
@Ananths

It seems you do well with your spread trading. :clapping: If you do not mind I allow my self to post two links in your thread which are related to spread trading. The first is an article about debit spreads. After the article a very profound discussion starts about pro and contra on otm or itm / high vola or low vola / put or call debit spreads or credit spreads. Many questions asked and answered and compared with each other. Extremely informative for lovers of spreads or for those who want to learn and know more about those spreads without reading a whole thread or writing for hours. Here it goes:

http://www.1option.com/index.php/global/comments/the_problem_with_debit_spreads/

The next link is a discussion about how to set a stop loss on credit spreads. Also here: After the article a very nice discussion about the subject:

http://www.1option.com/index.php?/a...t_spreads_where_should_i_place_the_stop_loss/

Enjoy / DanPickUp
Wow Dan...great article and a bundle of knowledge in it on spread trading..
I'm going through this now..Thank you for posting this here.
Its worth reading..Thank you!:thumb:
 

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