GOOD PROFIT: Hedged nifty positions with straddle...

[vicky_ag]

hey wats ur yahoo/gmail id ..maybe we can talk sometime..

U never played options. Yet you are following this thread. that shows ur interest in options. Just like 7 basic tunes combine to make beautiful music, you can combine options to make strategies and that takes away a lot of risk associated with the market.

 

[linkon7]

hey wats ur yahoo/gmail id ..maybe we can talk sometime..

Yahoo id is given on the profile page. I am sure we can chat sometime....

 

[kumarin2000]

this is my first post -- but i am reading this since start of your trade. i have got one question can we have 100 point diff in straddle (for eg. call 3400 and put 3300 or call 3500 and put 3400) if not pls explain

 

[linkon7]

this is my first post -- but i am reading this since start of your trade. i have got one question can we have 100 point diff in straddle (for eg. call 3400 and put 3300 or call 3500 and put 3400) if not pls explain

you can have a difference of as many points as you like. then the strategy is called strangle but the functionality remains the same. if you sell 3700 call and 3200 put then you are playing for a wider range and hence will receive a lower premium. a 3400 put and 3500 call will narrow the range but you'll receive a higher premium.

 

[kumarin2000]

thanks for your promt replay

i will also start trading from monday will keep touch with you

again thanks

 

[kumarin2000]

ok here we start considering new trade

can we consider june 3500 call which is trading @224 and june 3500 put @243

thanks again for your initiative


kumar

 

[Xaero]

you can have a difference of as many points as you like. then the strategy is called strangle but the functionality remains the same. if you sell 3700 call and 3200 put then you are playing for a wider range and hence will receive a lower premium. a 3400 put and 3500 call will narrow the range but you'll receive a higher premium.

I didn't understand one bit of this :lol: but the amount of effort you have put into explaining it is amazing! Great work!

 

[linkon7]

ok here we start considering new trade

can we consider june 3500 call which is trading @224 and june 3500 put @243

thanks again for your initiative


kumar

Dont touch June options. They will have huge gaps in prices and will jump around like crazy. Preferably play june after 20th May. You'll give sufficient liquidity and get an exit in case thing go bad. You can easily target 100 points in ATM straddle then.

 

[linkon7]

I didn't understand one bit of this :lol: but the amount of effort you have put into explaining it is amazing! Great work!

I am glad u appreciated an effort, even if u didnt understand it. Options are a different ball game. track AW10 and read his post. you'll get a fair idea. He can see options like A R Rehman sees musical notes.

 

[kumarin2000]

Dont touch June options. They will have huge gaps in prices and will jump around like crazy. Preferably play june after 20th May. You'll give sufficient liquidity and get an exit in case thing go bad. You can easily target 100 points in ATM straddle then.

thank u very much linkon7 -- then we will go for may 3400 and 3500

in april i have shorted 3400 call @ 83 and 3300 put @ 74 and had good gain only thing i have not traded nifty along with this

this month i will trade this along with nifty


thank u very much for your guideline monday i am going to execute the trade