Thoughts and Trades on Options

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#2
Re: Day trading Nifty Futures

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.
 
#3
Re: Day trading Nifty Futures

But still 99% daytrade.:D

Smart_trade
I have stopped day trading. I sell and trade mainly options and try to neutralize delta to eat thetha :)

I am earning without doing anything in the market . If I do something in the market I lose money. So better not to do anything so market gives me bonus just for not doing anything
 
#4
Re: Day trading Nifty Futures

I have stopped day trading. I sell and trade mainly options and try to neutralize delta to eat thetha :)

I am earning without doing anything in the market . If I do something in the market I lose money. So better not to do anything so market gives me bonus just for not doing anything
How do you adjust in case the market makes a large swing ? Kuchh gyan banto, Mundeji....

ST
 
#5
Re: Day trading Nifty Futures

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
 
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DanPickUp

Well-Known Member
#6
Re: Day trading Nifty Futures

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 ce 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
Interesting and well expressed. Do not worry about your English, it is fine. :) When I read through your post, the analyzing picture appear in my head. So no worry about that.
 
#7
Re: Day trading Nifty Futures

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
Mostly I do adjustments between 3.15 and 3.25 or next day between 9.15 and 9.30
 
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#8
Re: Day trading Nifty Futures

Read that post Munde. Thanks

But these strategies are ok for 200-300 points move in NF and 500-700 points move in BNF but the problem comes when NF moves by 500 points and BNF by 1000-1200 points. Also if there is a move of 300 points up and 300 points down due to increase in volatility, then adjusting delta becomes very difficult.

But as you are trading these ,I am sure I am missing something. So I have to learn that.

ST

Nifty 500 points and BNF 1200 points does not move in one day. It happens on very few occasion such as election result or something else. Downside is completely protected by put ratio backspread. And for up side the ratio of put is always such as 1.5 to 2 times. It happens rarely. We also keep covering lowering strike pe and keep on writing higher puts. Also we can stay away if some important news result is expected. There is another way if needed and doubtful we can use long on call ratio spread. but sell 1 otm call buy 2 far otm call. There is always more risk in downside. Upside risk can be managed i think. Sometimes it is better to trim or exit the position with small if market is very volatile and doubtful. There is no probelm if volatility increases. The prices of options will increase temporarily but expiry range will be same.

Ratio of put is 1.5 5o 2 times. Nifty rarely moves 500 in a day. Only in exceptional cases. As we are traders , there is little risk also. No Risk, No Gain
 
#9
Re: Day trading Nifty Futures

Nifty 500 points and BNF 1200 points does not move in one day. It happens on very few occasion such as election result or something else. Downside is completely protected by put ratio backspread. And for up side the ratio of put is always such as 1.5 to 2 times. It happens rarely. We also keep covering lowering strike pe and keep on writing higher puts. Also we can stay away if some important news result is expected. There is another way if needed and doubtful we can use long on call ratio spread. but sell 1 otm call buy 2 far otm call. There is always more risk in downside. Upside risk can be managed i think. Sometimes it is better to trim or exit the position with small if market is very volatile and doubtful. There is no probelm if volatility increases. The prices of options will increase temporarily but expiry range will be same.

Ratio of put is 1.5 5o 2 times. Nifty rarely moves 500 in a day. Only in exceptional cases. As we are traders , there is little risk also. No Risk, No Gain
Agreed Nifty does not go up/down 500 points in 1 day. But it can do that in one month .But with large swings up/down it becomes difficult to manage.

I am looking at options for trading with a large quantity so the risk and reward has to well defined.

But will see if I can modify the strategy to suit my risk tolerance.

ST
 
#10
Re: Day trading Nifty Futures

Agreed Nifty does not go up/down 500 points in 1 day. But it can do that in one month .But with large swings up/down it becomes difficult to manage.

I am looking at options for trading with a large quantity so the risk and reward has to well defined.

But will see if I can modify the strategy to suit my risk tolerance.

ST
Sirji Downside is fully protected by ratio backspread put So no need to worry about downside . and for up side raio of put will always be 1.5 to 2 times than call. So As far as possible put will take care of the calls even if there is good move in calls. Also we keep on covering lower puts and keep on writing puts ITM 100 points higher than the market in nifty and 200/300 points higher in bnf

I am going to Bangalroe . I will reply more later..Thanks
 
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