Re: Day trading Nifty Futures
As I mentioned in my earlier posts. My position will be
Sell 1 Lot ATM/OTM call , Sell 2 Lot OTM Put.
Sell 2 Lot Far OTM Put Buy 4 Far FAR OTM Put.
So I am always protected from downside by ratiobackspread. In downtrend Also I keep on booking profits in higher strike calls and keep on writing lower strike calls . For uptrend The ratio of put will always be more than calls. So it will take care of the calls in uptrend. I keep on booking profits by covering lower strikes of put and keep on writing higher strike price.
It is almost hedged all the time by adjustment. Without hedging and adjustment it is very risky to sell options.
I hope you read this post
Originally Posted by Smart_trade
How do you adjust in case the market makes a large swing ? Kuchh gyan banto, Mundeji....
ST
Originally Posted by munde_77
Sold 300 BNF JAN 11300 PE at 247 and 200 BNF JAN 11600 CE at 272
Sold 300 BNF JAN 11100 PE at 178
Bought 600 BNF JAN 10900 PE at 105
If market closes above 11600 , I will write 11700 or 11800 pe after covering and booking profit in 11300. If market closes below 11300 , i will write 11100 or 11000 ce after coveriing and booking profit in 11600. So likewise i will keep on covering lower strike pe and writing higher strike pe if market rises and if market falls i will keep on covering higher ce and keep on writing lower strike ce
The downside is protected from any unknow crash by ratio backspread. There is difference between Theoritical and real movement of backspread.
__________________
I always keep roughly 300 points in my hand for adjustment on upperside. Also the ratio is sell 1 lot call otm , sell 2 lot put otm again sell 2 lot far otm put and buy 4 lot far far otm put. i.e by ratio backspread downside is protected from unexpected crash. I always keep 1.5 or 2 times more position in put than call andl alway keep distance of 300 points for adjustment.call 250 + put 250 + 250 = 750/2 = 375 so 11300 - 375 is breakeven downside. Meanwhile I will cover calls and keep on writing lower strike price. by covering upper strike price. I dont know how to express or convince as my english is not good
__________________
Preserving your capital is more important than capital appreciation
Last edited by munde_77; 26th December 2013 at 11:14 PM.
Munde_77,
When you have the time, could you post about your positions and how you dealt with them in Aug 2013 series and Oct 2013 series ?
Thanks.
When you have the time, could you post about your positions and how you dealt with them in Aug 2013 series and Oct 2013 series ?
Thanks.
Sell 1 Lot ATM/OTM call , Sell 2 Lot OTM Put.
Sell 2 Lot Far OTM Put Buy 4 Far FAR OTM Put.
So I am always protected from downside by ratiobackspread. In downtrend Also I keep on booking profits in higher strike calls and keep on writing lower strike calls . For uptrend The ratio of put will always be more than calls. So it will take care of the calls in uptrend. I keep on booking profits by covering lower strikes of put and keep on writing higher strike price.
It is almost hedged all the time by adjustment. Without hedging and adjustment it is very risky to sell options.
I hope you read this post
Originally Posted by Smart_trade
How do you adjust in case the market makes a large swing ? Kuchh gyan banto, Mundeji....
ST
Originally Posted by munde_77
Sold 300 BNF JAN 11300 PE at 247 and 200 BNF JAN 11600 CE at 272
Sold 300 BNF JAN 11100 PE at 178
Bought 600 BNF JAN 10900 PE at 105
If market closes above 11600 , I will write 11700 or 11800 pe after covering and booking profit in 11300. If market closes below 11300 , i will write 11100 or 11000 ce after coveriing and booking profit in 11600. So likewise i will keep on covering lower strike pe and writing higher strike pe if market rises and if market falls i will keep on covering higher ce and keep on writing lower strike ce
The downside is protected from any unknow crash by ratio backspread. There is difference between Theoritical and real movement of backspread.
__________________
I always keep roughly 300 points in my hand for adjustment on upperside. Also the ratio is sell 1 lot call otm , sell 2 lot put otm again sell 2 lot far otm put and buy 4 lot far far otm put. i.e by ratio backspread downside is protected from unexpected crash. I always keep 1.5 or 2 times more position in put than call andl alway keep distance of 300 points for adjustment.call 250 + put 250 + 250 = 750/2 = 375 so 11300 - 375 is breakeven downside. Meanwhile I will cover calls and keep on writing lower strike price. by covering upper strike price. I dont know how to express or convince as my english is not good
__________________
Preserving your capital is more important than capital appreciation
Last edited by munde_77; 26th December 2013 at 11:14 PM.