Trade Nifty Options Intra Day Using Hedging Principle

[gmt900]

Yes. I did it at around 9:40 AM.

I just saw VIX around +6% and high OI in both 6200PE & 6300CE. So took this trade.

Sold 6000PE @ 34 and 6400CE @ 33.

Will you please tell where you got the data for VWAP from?

 

[ankurpcl]

I will illustrate the same if any practical trade starts building up during Intra day.
Unable to show charts as of now to show the concept, but working on that as well.

It will take 1~2 months time, to illustrate all trades through self designed charts as it makes the strategy more easier to under stand for everyone.

 

[ankurpcl]

Todays Dragon which is Building up in Nifty as below at 10:30 AM:

6100 Put VWAP : 59
6200 Call VWAP: 98

Trading strategy as below:

a) Sell 6100 Put 59 + 6 = 65 (5 Lots), 65+ 7 = 72 (5 Lots) with SL 72 + 7 = 79

Once Condition A gets done, Apply b

b) Sell 6200 Call(Same Lot Size as done in A) once 6100 Put settles(means touching this price) between 57-60 levels during intra day if 6100 Put 65 gets hit
or 6100 Put settles(means touching this price) between 64-68 after hitting levels of 72.

Once both trades done at A and B SL will be changed to 10 points away from the total premium captured.

Profits/Losses will be shared after market hours.

 

[jain.er]

One bad day and you are down 21 points (per 5 lots)

On a good day you make 5 points (per 5 lots)

Risk reward 4:1
(should be the other way...)

 

[prabhsingh]

Kindly can you suggest some good books on money management where risk:reward should be one of the key topic.

 

[ankurpcl]

You cannot say risk reward ratio 5:1. I will update the today's profit and losses
after market hours.

 

[ankurpcl]

I generally advice people who are new to markets avoid reading trading books at least which talks about trading methodologies. Rather find some good traders near your place or you can take help of internet by joining some good forums like Traderji where many experienced traders visit and willing to share their trading methodologies with everyone with out any cost.

My experience, Books reading not helpful when you want to trade in markets which is too much complex and depends on so many factors to work on same time.

As far as risk reward is concerned every book has its own definition, so best will be this question you ask yourself before trade . Everyone has its own risk taking appetite.

 

[DanPickUp]

I have only theoretical knowledge of VWAP. Please elaborate on how to apply this concept in practice for nifty.

@Gmt900

You best ask those question Pratapvb in his thread (Link is in post 14). Also ST is using that tool in his trading, as far as I know. You may also ask him. Otherwise Ankurpcl just told that he will illustrate over time what he has in mind/knows about VWAP. I do not consider my self as a person which is deeply familiar with VWAP, so there are other people around here which deserve better to be asked for about that specific topic in TA. Take care / DanPickUp

 

[ankurpcl]

Today's Trade Summary as below:

Premium Captured : 65 +93 = 158
Premium Returned: 57 + 90 = 147

Net Premium Gain = 11 Points
Net Profit for today = 11*50*5 = Rs 2750 - Rs 120 (Brokerage + tax)
= Rs 2630

 

[gmt900]

@Gmt900

You best ask those question Pratapvb in his thread (Link is in post 14). Also ST is using that tool in his trading, as far as I know. You may also ask him. Otherwise Ankurpcl just told that he will illustrate over time what he has in mind/knows about VWAP. I do not consider my self as a person which is deeply familiar with VWAP, so there are other people around here which deserve better to be asked for about that specific topic in TA. Take care / DanPickUp

I did try to go through Pratap's thread, but found it rather hard to follow. I would wait for Ankur to explain the concept.