Options For all Seasons

[tradedatrend]

Hey there is no such thing regarding margin for which you need to spend a big time on 'studying'.

Just go to zerodha margin calculator, set you pairs and required margin will display, same shall work with most of the brokers +/- 5%.

All your span and exposure queries will be sorted out.

And dont ask anything to RMs of your regular broker, except robbing the clients' fund they seldom know anything.

Right now I am trying to study the margin requirements for these strategies.

Unfortunately, most of the managers at brokerages are not knowledgeable about this subject.

For example, if one gets into calendar call/put or double calendar strategy, as long as one does not square off any leg, there is no need to keep any margin since the risk to both the trader as well as broker is nil.

Another issue is about exposure margin. Say, if for selling one lot nifty option, SPAN margin is 30,000 and exposure margin is 20,000, can the broker at his descretion waive exposure margin? Is it necessary to have securities in your Dmat account so that after hair cut broker has enough securities to enable him waive exposure margin?

I feel, if one wants to regularly trade in these strategies, margin requirements
is a very important part to reduce overall cost of the trade.

 

[tradedatrend]

As far I know India VIX has began to trade recently only (may be since 2 and half years).

in case of Current month ATM CE & PE Short and Next month ATM CE & PE buy, increased votility will help you gain more.

But if market moves more than 300 points from your ATM and you doesn't move, then your gains shall be erased and possible you shall be in some loss too, may be 30/40 points loss.

Currently, nifty VIX is at multiyear low levels. Since we are buying as well as selling options, increase in volatility will not affect the position adversely.

Is that right?

 

[coolbull]

As far I know India VIX has began to trade recently only (may be since 2 and half years).

in case of Current month ATM CE & PE Short and Next month ATM CE & PE buy, increased volatility will help you gain more.

But if market moves more than 300 points from your ATM and you doesn't move, then your gains shall be erased and possible you shall be in some loss too, may be 30/40 points loss.

Truly said tradeatrend, Yes Volatility is easy to predict compared to price that what vix does, it started since nov 2007 and based on OTM option prices.

@ GMT900, Sorry for the delay, infact you already know many things, When i say sellers earn more in stagnant market.....We know that seller knows other market factors but still has one of the best thing to his advantage that makes or breaks options ...ie TIME DECAY......if market is stagnant (within a range) seller earns daily based on TIME decay......well if we go by theory, then we need to consider many things like Theta vega gamma delta vix international markets commodities Dollar OI COI volumes PCR and what not.......take a generic idea and go for Spreads /pairs....if risky player keep till expiry else move your position to next month and hedge with futures or far month......thanks

 

[coolbull]

some links for option traders I am sure many of u already know this or might have shared.....if shared please excuse me for repeating the same..all credit goes to all of you Traderji forum members for exceptional help,cooperation and support to all the traders


http://www.optiontradingpedia.com/neutral_options_strategies.html

http://www.theoptionsguide.com/

http://www.optionsplaybook.com/option-strategies/

http://www.optionsxpress.com/free_education/strategies/bullish.aspx


My strategy in all markets is to enter with pairs mostly neutral ones even if i have bullish or bearish bias......that helps me to get in trade and once my view is confirm i add more legs for support more profit and hedge.. Thus improve my profit,sometimes i am able to catch big move.....


there are many sites that guides well even some site has a calculator that can help you manage risk profile......


Sorry for the repetitive info.
Thanks

 

[coolbull]

Based on Current Data : Nifty is Bullish in all 3 month (aug-sep-oct)

already long In nifty /Banknifty fut since last thursday......as maxpain was 7600 (beginning of series) now its moving up above 7800....

Missed on last thurdays(30-40 point opening) hence added calender spread straddle 7800 (sep)- 7800(oct)....

Mentioned futures here for future traders , volatility based week buy triggered in Nifty @7863 / weekly resistance @7929 support @7702

 

[coolbull]

Covered nifty /banknifty EOD and kept 1 lot of both open as weekly Buy triggered in both Nifty an Banknifty

Buy 7861.88 15325.46
Sell 7738.12 14898.54

 

[coolbull]

Covered some other strategies......kept few loosing ones .....

opened 1 calender straddle spread : debit Spread( sep -oct)

sold sep
7800c @156 now @ 186.05 = -33.05
7800p @110 now @86.9 = 23.1

Bought oct
7800p @ 149 now @ 123.8 =25.2
7800c @215 Now @ 258.7 = 43.7

------ ------- 11.55 -------------------

 

[coolbull]

-----Resistance for a day--- 7,903.88 ------ 7,920.06 ---- 7,946.24

Nifty Support Resistance

-----Support for a day --- 7,809.16 ------- 7,835.34 ---- 7,851.52

 

[jetking]

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[coolbull]

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