TARGET :500 Nifty points per month...!

[sumitdasjoshi]

one more question if i choose 4900 i sold both the call and put than i have to buy nifty if it crosse 4900 and sell when it go below 4900 is it right, ok if yes than if i choose 4900 today and now nifty is 5250 so should i imediately buy nf 5250 or should i wait for it will you plz explain.

 

[trader.trends]

one more question if i choose 4900 i sold both the call and put than i have to buy nifty if it crosse 4900 and sell when it go below 4900 is it right, ok if yes than if i choose 4900 today and now nifty is 5250 so should i imediately buy nf 5250 or should i wait for it will you plz explain.

The idea of the strategy is to short a straddle with max time value and use the premium gained to trade in NF. 4900 has no time value in it. You should choose a strike nearer to the spot for max time value on the short straddle.

 

[sumitdasjoshi]

sorry but it just a example i will not choose to trade that stradel the point in it is that if the spot price and nf is far than what should we do.

 

[AW10]

Sumit, You will get straddle at the max 50 points +/- of nifty spot at any time.
Otherwise, why don't you use Short Strangle taking next strike above and below nifty.
Backtest and this and see what happens..

IMO, short straddle and short strangle are very close to each other in terms of basic characteristics.

Lets us see if Linkon has any other idea or experience.
Happy Trading

 

[nimish_rulz]

Great thread. Some very nice views. Linkon are you still continuing the other thread or will this be your main thread from now on?

 

[linkon7]

one more question if i choose 4900 i sold both the call and put than i have to buy nifty if it crosse 4900 and sell when it go below 4900 is it right, ok if yes than if i choose 4900 today and now nifty is 5250 so should i imediately buy nf 5250 or should i wait for it will you plz explain.

sorry but it just a example i will not choose to trade that stradel the point in it is that if the spot price and nf is far than what should we do.

Sumit,
break the 3 legs into 2 parts,

1. Covered call (NF long + options call short) or covered put ( NF short + options put short)
2. Naked options put short or option call short

say i short the 5200 straddle and and am presently long in nf at 5212...
I see 5200 call short+NF long as a pair and 5200 put short as a separate entity... as Price moves up, NF gains, 5200 call short looses... and 5200 put short gains...the losing leg, 5200 call will have a lower delta than nf and will give me lower loss than what i'll gain from nf...

below 5200, nf short and 5200 put short becomes the pair (covered put) and the 5100 call short is my profit earner...

Now, what do i gain if i select 4900 strike price... there is hardly any meat left to provide me some protection...

Look at the chart... we still have a situation where the momentum is up, price has closed above its 30 ATR, our filter is yet to touch the top band...

I wait for the short ema to make a u turn after it has crossed the top band... when this scenario happens, we can assume that a top has been made... we need to show some patience before we can short the 5300 or 5200 strike price.... We need price to make a confirmed top... and then we go for our strategy...

 

[summasumma]

...

Hi linkon7,

You are doing great job in trying improving the system and enlighten others about options usage... Keep up the good work. :clapping:

can i know using which software you are doing ema34/atr30 and getting this chart pic?
Is it from any broker or free software? do we need to pay for live niftyfuture feed into it during market hours?

Also i dont see any revision from ur previous thread to this new one. That is, short straddle @ x and go long above x/go short below x.... Or i am not getting it rite

Thanks
...summa.

 

[nimish_rulz]

_SECTION_BEGIN("Price");
Plot( EMA( (H+C+L)/3, 3 ),"TRIGGER", colorBlue, styleThick ); 
Plot( C, "Close", colorWhite, styleBar ); 


CenterLine = EMA( (H+C+L)/3, 34 );
KTop   = CenterLine + 1.8 * ATR( 30 );
KBot = CenterLine - 1.8 * ATR( 30 );

Plot( KTop, "", colorRed, styleThick); 
Plot( KBot, "", colorBrightGreen, styleThick ); 
_SECTION_END();

This is not working for me in ambibroker very new to it. I usually use metastock.
I get error 30 syntax error.

Ok made it work. Thanks

 

[linkon7]

Hi linkon7,

You are doing great job in trying improving the system and enlighten others about options usage... Keep up the good work. :clapping:

can i know using which software you are doing ema34/atr30 and getting this chart pic?
Is it from any broker or free software? do we need to pay for live niftyfuture feed into it during market hours?

Also i dont see any revision from ur previous thread to this new one. That is, short straddle @ x and go long above x/go short below x.... Or i am not getting it rite

Thanks
...summa.

There is no improvement...! Its just a revision...!
its the same old wine in a new bottle... basic idea is to go long above strike price and short below strike price...

The chart u see is from amibroker....
I use chartsdata for extracting RT data from odin to amibroker during market hrs, and no, the service is free for 2 scrips...

 

[summasumma]

There is no improvement...! Its just a revision...!
its the same old wine in a new bottle... basic idea is to go long above strike price and short below strike price...

The chart u see is from amibroker....
I use chartsdata for extracting RT data from odin to amibroker during market hrs, and no, the service is free for 2 scrips...

Ok linkon7. i have downloaded Amibroker version 5.2 now.
How to get Odin? and chartsdata for the same? You have any link to get that.

Thanks
...summa