Premium Eating Strategy - BankNifty Weekly Options

[Rajeevji]

Hi MyCall,


Thanks for replying.

Your learning is something which I too have learned the hard way: "what I learned is it always wise to play it small... safe... it is always best to go for realistic ROI targets and plan a strategy according to that to participate in the game..."

I was thinking that some risk positions you were holding took you out of the game. Nothing that serious seems to have happened.

Regards

Rajeev

 

[mycall]

Hi MyCall,


Thanks for replying.

Your learning is something which I too have learned the hard way: "what I learned is it always wise to play it small... safe... it is always best to go for realistic ROI targets and plan a strategy according to that to participate in the game..."

I was thinking that some risk positions you were holding took you out of the game. Nothing that serious seems to have happened.

Regards

Rajeev

What I learned that Option trader must have plans to counter any and every situation... or exit at S/L... there is no place of hoping for something...

Goal post shifting 'in flight' is not good for an option trader...

What I did wrong there was shifting goal post from 25000 to 24800... that is the most dumbass act I did there... I had no clue where price is heading... so there was no point of shifting... but then 'hope' played a greater part coupled with the 'loss booking' thing... no body wants to book loss... specially if it went past your tolerance level (S/L) due to 'greed' and/or 'hope' and/or 'overconfidence'... that was happened... and the problem aggravated by holding of naked lots...

anyway... since then I shifted to spreads and working on a few strategies on how to manage stressed spread positions

Thank you

 

[mycall]

It is better to stay away from market at this point of time... nothing is natural going on since last few sessions... in my view it is not a good time for a option trader to be in this market

 

[Rajeevji]

Hi MyCall

Currency Trading is the biggest market. It was profitable for you as mentioned by you in Amrutham's thread). But courtesy Mr Rajan increasing margins you suffered.

Is there any other reason for leaving currency trading?

There are very few threads in TJ on Forex. May be you could cover it here itself.

Regards

Rajeev

 

[mycall]

Hi MyCall

Currency Trading is the biggest market. It was profitable for you as mentioned by you in Amrutham's thread). But courtesy Mr Rajan increasing margins you suffered.

Is there any other reason for leaving currency trading?

There are very few threads in TJ on Forex. May be you could cover it here itself.

Regards

Rajeev

Hi Rajeevji

Yes... Rajan screwed every native fx trader big time... I guess he had no clue what he was upto... and I believe surely he was listening to someone else than his mind or his team

anyway... yes... I still trade in fx... shorting fut with ATM PE... I personally have benefit from devaluation of INR... most of my clients are overseas...

Back then we used to do buy short fut using two different accounts... and used to earn 10-12k each month... initially with 10paisa interval... later pushed it to 20-25paisa... I used an application for that ran at VPS...

Now I am only shorting 50paisa apart with ATM PE short... and rolling over to next series at expiry

Thank you.

 

[mycall]

Trading in our markets is going to be interesting starting Sept 14th... there will be some dent in ROI calculation going forward...

the above message says so...

so friends please do your homework well so none is caught unaware...

thank you

 

[mycall]

Amazing thing happening in market... never seen in my life

700pts premium in BNF... oooops!

It seems some big houses offloaded their portfolio

 

[mycall]

hello guys please suggest expiry trading style in any stock or index option contracts.
like what to see first , which stocks to select ,etc step by step process to take good profits on expiry....

Hello Friend... enough material available in TJ from our peers which will help anyone learn the trick of the trade... if you are able to dedicate professional time... not leisure time... be disciplined, sincere and honest to yourself (by accepting your faults quickly)... you will definitely make more return than FDs, NSCs, PPF or any top level MFs peacefully... and you will be proud of yourself...

Please start walking the path for at least an year of rigorous study and practice...

Wish you good luck in your trading life...

 

[kingkrunal]

Now I am only shorting 50paisa apart with ATM PE short... and rolling over to next series at expiry

Can you please explain this a bit in detail ? Does it mean go short on usdinr and buy the pe 50p apart... at expiry go short on next month contract ans buy another pe ..

edit after read shorting fut with ATM PE

 

[mycall]

Can you please explain this a bit in detail ? Does it mean go short on usdinr and buy the pe 50p apart... at expiry go short on next month contract ans buy another pe ..

edit after read shorting fut with ATM PE

There is no detail in this friend... there is no strategy here... I just mentioned in response to a post that I am active in currency trading... whatever I am doing now is for my own benefit...

Still I am explaining here what I am doing and why...

I am personally benefited with the devaluation of INR... as a bigger chunk of my business income comes from US... so I gain while USDINR goes up...

Now what I am doing is shorting USDFut with ATM PE at every 50 paisa... I getting at least 40-50paisa premium now... normally in cool market we used to get 25-30...

If USD drops 50 paisa I exit both the positions... generally booking 25-30 paisa... if it advances I am hedged till 50 paisa... will again short @ +50paisa level...

Also options are booked below 7-8paisa... or just it expires...

On expiry leftover lots rolled over to next series... rollover premium of around 25-30 paisa adds to the shorting price...

While rolling over I calculate the average shorting price and if I get some premium (minimum 19-20 paisa) in ITM options those options of respective quantity shorted...

By doing this my average shorting price moves up every series... by accumulating the ATM PE Premiums, rollover premiums and occasional profit booking (in case of USD drops and I book profit)...

In a year (12 months) about 3.5-4INR gets added to the shorting price of every lot by rollover premium and ATMPE short... and if USD stays volatile profit booking also adds to this...

I started working with overseas clients back in 2008 with a conversion rate of around 44-45... now it is 73... 29INR increased... it is 10 years... so 10 x 3(minimum) gets to 30INR...

PLEASE NOTE: THIS HELPS ME PERSONALLY BECAUSE OF MY BUSINESS... this is not a strategy... of course if you earn in USD and conversion rate makes a difference in your income then you also can think of this