Option Logics

[uncertainity]

RH, A small request, Is it possible you post your queries, which are quiet basic, in a new thread and leave this thread for the Discussion that is going on! I felt that you might be hindering the flow here. No issues if you continue here. Just my suggestion. I came to this thread today only and found the same very interesting. Seems with mkt closed today your queries were discussed. Please, please ignore my suggestion if it hurts!

rh is just clearing his doubt,and it is helpful for many of us. Moreover this forum is for everybody, from a beginr to an expert. so if you are an expert then help the beginrs like toughard sir and many in this forum. Dont discourage them.

 

[gkpc]

rh is just clearing his doubt,and it is helpful for many of us. Moreover this forum is for everybody, from a beginr to an expert. so if you are an expert then help the beginrs like toughard sir and many in this forum. Dont discourage them.

I am sincerely sorry for my Post! I never meant to discourage RH from asking. Just thought it would be appropriate if a New thread with basic quries was started. Please ignore my Post and carry on RH!

 

[toughard]

Okay, we Sell the nearest Lower calue Calls and not the Call where we think the support is?

So it would turn out something like this :
Going by my Trade done in August, and using Call Back Spread, would it be correct to have bought 2 lots 7900 CE at 53 and Sold 1 Lot 7800 CE at ~80 !
Now on 22nd Aug the closing rates are :
7900 CE is 60 (X2) Profit 14
7800 CE is 130 Loss 50 points

And my breakeven would be at 8026 and 7774 ! Is this correct?

I am afraid that based on the your inputs, breakeven points are not right!! kindly see the the table below for correct once... hope these calculation you do it right and your self from here on.. as its fundamentally important to be right in this aspect...

 

[toughard]

dear toughard pls clear my doubt,
Can we trade options in intraday like we trade stocks in cash market with proper risk and reward ratio by considering only charts and not looking to particular option strategies like straddle strangle butterfly condor etc .do price action works there or any other mechanical systems...?

-Yes, we can trade options intraday as they are like high beta/momentum stocks
-Using future chart for day trading option is not wise as the underlying movement is not the only driver of option price
-Its better to use option charts itself for price action option trading as a day trader



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[toughard]

rh is just clearing his doubt,and it is helpful for many of us. Moreover this forum is for everybody, from a beginr to an expert. so if you are an expert then help the beginrs like toughard sir and many in this forum. Dont discourage them.

I am sincerely sorry for my Post! I never meant to discourage RH from asking. Just thought it would be appropriate if a New thread with basic quries was started. Please ignore my Post and carry on RH!

Dear both, no one is always right or always wrong, but lets not regret for anything while I feel for such suggestions and ideas better we use PM (private message) facility here as it will help us to cope up with our off the subject differences!!

Welcome you both again!


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[toughard]

Bearish Structure @ -2985
Risk Reversal @ -400
Butterfly @ -2700
7900 CE Sold is @ +80

This simple looking chart is turning out to be very informative while have to Start making full use of it ASAP.. will try to post in detail by this contract expiry!!!

 

[rh6996]

Taking a directional view on Nifty have Bought Sep series 7700 CE at 269.30 X 2
and Sold Sep NF 8100 strike CE at 50.40 X4
Shall exit 7700 CE when Sep series Nifty closes below 7688.

 

[rh6996]

Seeking views on above trade, how to reduce Risk !

 

[toughard]

Closed both..

Risk Reversal @ +1450
7900 CE @ +1250

 

[toughard]

Taking a directional view on Nifty have Bought Sep series 7700 CE at 269.30 X 2
and Sold Sep NF 8100 strike CE at 50.40 X4
Shall exit 7700 CE when Sep series Nifty closes below 7688.

This is what you have done right...

you asked when "Sep series Nifty closes below 7688" why is that? you BEP @ 7868
1st thing is "less is more" buy 1 lot of 7700CE than 2 lots and see the risk is reduced compared to profits
2nd you have sold 8100CE is it hidden behind CE HOI?? ie., at next month OI chart does 8000CE OI is Highest??