Trading strategy for nifty

#1
Hi traders,
Today also nifty fell by 37.8 points and closed at 8029.80.Nifty put option is being traded at Rs.58.8 and nifty call option at Rs.108.95. Nifty future was closed at 8053.95.My strategy would be to sell call option of 8000 strike price at Rs.108.95 and buy put option of 8000 strike price at Rs.58.8 and buy nifty futures around 8050. Keep in mind option greeks, vix, expected rate of return etc.
Happy trading
 
#2
Hi traders,
Today also nifty fell by 37.8 points and closed at 8029.80.Nifty put option is being traded at Rs.58.8 and nifty call option at Rs.108.95. Nifty future was closed at 8053.95.My strategy would be to sell call option of 8000 strike price at Rs.108.95 and buy put option of 8000 strike price at Rs.58.8 and buy nifty futures around 8050. Keep in mind option greeks, vix, expected rate of return etc.
Happy trading
You love to post collars in any way, don't you? The last you posted was on Infosys. How did that one work out? :)

http://www.tradeoption.fr/blog/Strategie Options - Trader Collar-nv60.htm l

http://www.investopedia.com/terms/c/collar.asp
 

prabhsingh

Well-Known Member
#3
Hi traders,
Today also nifty fell by 37.8 points and closed at 8029.80.Nifty put option is being traded at Rs.58.8 and nifty call option at Rs.108.95. Nifty future was closed at 8053.95.My strategy would be to sell call option of 8000 strike price at Rs.108.95 and buy put option of 8000 strike price at Rs.58.8 and buy nifty futures around 8050. Keep in mind option greeks, vix, expected rate of return etc.
Happy trading
You are selling call options which means you expecting more fall whereas i feel this month market wont fall below today's low.
 
#4
You are selling call options which means you expecting more fall whereas i feel this month market wont fall below today's low.
He sells around delta 60 and he buys around delta 40 and he is long delta 100. So is he bullish or bearish :D
 
#6
Re: Trading strategy for nifty for december,2014

He sells around delta 60 and he buys around delta 40 and he is long delta 100. So is he bullish or bearish :D
Hi somatung,
Today nifty rose by 129.50 to 8159.30.But it opened at 8138.9. So compared to open price it didn't rise much. Okay, by the way,My next nifty strategy would be to sell put option of 8000 strike price which is being traded at Rs.10.8 along with buying of call option of 8300 strike price at the today's closing price i-e Rs.13.80. This is not collar.Keep in mind option greeks, expected rate of return,regression,momentum,ADX,VWMA etc
happy trading
 
#7
Re: Trading strategy for nifty for december,2014

Hi somatung,
Today nifty rose by 129.50 to 8159.30.But it opened at 8138.9. So compared to open price it didn't rise much. Okay, by the way,My next nifty strategy would be to sell put option of 8000 strike price which is being traded at Rs.10.8 along with buying of call option of 8300 strike price at the today's closing price i-e Rs.13.80. This is not collar.Keep in mind option greeks, expected rate of return,regression,momentum,ADX,VWMA etc
happy trading
Yeap, I know about that rise.:)

So your put has lost 40.80 Rs and your call has lost 76 Rs according to what is shown on the offical side today (18.12.2014) from http://www.nseindia.com/live_market...instrument=OPTIDX&symbol=NIFTY&date=24DEC2014 = Loss of at least 116 Rs.

Your future made, if you kept it, 129.50 Rs. So you would have a profit of around 13 Rs, commissions not included on all legs.

Now you would add the long call 8300 for 13.80 Rs, which would be a so called: Free leg (not considering any commission you are open to pay and taxes), as you have around that amount of profit.

Until now no profit nor any loss with your given legs. :thumb: Very well accepted as you are strategically placed.

Now you would have left: Long future, short 8000 call and long 8300 call. All three legs together look more or less like a long future with a little flat space around the current future spot price. If market now moves up, as you think so because of what you now did show, then your profit is good on the up side and on the down side you are endless open. So let's hope market moves up.

Love what you post and interesting to talk with you. Have a nice evening / Dan :)
 
Last edited:
#8
He sells around delta 60 and he buys around delta 40 and he is long delta 100. So is he bullish or bearish :D
I am a bit surprised that nobody is complaining about this post?

Take care / Dan :)
 
#10
I will make an attempt to comment.

Since the trade is delta neutral, he is neither bullish nor bearish. Am I right ?
Hi Gmt900

It was less about the direction. As he only could make profit when market goes up, he was surely more bullish, but protected him self to the down side in case a further fall in the market would have come.

As I posted: He sells around delta 60 and he buys around delta 40 and he is long delta 100, I did a clear typo mistake. Now why? Not going into the last details that the delta numbers are not exact at those levels instead a bit less on the call side and a bit more on the put side, but I keept it simple with this numbers on each side, see the below:



So the legs used in the trade in the first post is a short call a bit in the money, a long put a bit otm and the long future.

So the short call has a negative delta of around 60. That was fine. But the long put is not a long or positive delta of around 40 instead a negative delta of around 40. Here I made a clear typo. So we have a negative delta of total 100 in the trade through the two option legs and we have a positive delta of 100 through the long future leg. Yeap the option greeks are still tricky and have to be watched with eagle eyes and that even after years with them. :) Had to laugh about my self.

Take care and have a nice day / Dan :)

http://www.investopedia.com/articles/optioninvestor/03/021403.asp
 

Similar threads