Regular Income From Markets. Risk Free. Takes no Time

[healthraj]

It is highly likely that today will be a dull day. Since, Big Boys will wait for RBI decision and Greek dilemma to be resolved.

Next week is going to be memorable.

On such memorable week, it is better to go for Long Straddle instead of Long Strangle. So basically at the end of day today around 3:20 pm Buy Call and Put options at the Strike Price. The only problem is that for a straddle the premium would be high compared to Strangle.

 

[jamit_05]

On such memorable week, it is better to go for Long Straddle instead of Long Strangle. So basically at the end of day today around 3:20 pm Buy Call and Put options at the Strike Price. The only problem is that for a straddle the premium would be high compared to Strangle.

The reason I prefer OTMs, is that if any one leg becomes ATM (after a 100+ point move) then a good profit can be achieved. Whereas, purchasing at Strike Price does not pose any such advantage. In other words, if buying at Strike price requires lesser movement in Nifty then the method will be worth looking into.

 

[healthraj]

The reason I prefer OTMs, is that if any one leg becomes ATM (after a 100+ point move) then a good profit can be achieved. Whereas, purchasing at Strike Price does not pose any such advantage. In other words, if buying at Strike price requires lesser movement in Nifty then the method will be worth looking into.

Jamit You are right when NIFTY moves 50-100 points. But when you expect NIFTY to 100-200 points, the Straddle will give you more profit.

 

[sayantan2u9]

i dont understand one thing , how the 50-52 pair now still costs 112 , when yesterday it was 107-108 .
the nifty effectively moved down and up , but is at the same level as it was yesterday .
so i thought the premium of both the options should be less . but it isnt .
can somebody explain how this happens?

 

[jamit_05]

i dont understand one thing , how the 50-52 pair now still costs 112 , when yesterday it was 107-108 .
the nifty effectively moved down and up , but is at the same level as it was yesterday .
so i thought the premium of both the options should be less . but it isnt .
can somebody explain how this happens?

http://www.traderji.com/trading-dia...rkets-risk-free-takes-no-time.html#post691050

 

[jamit_05]

Folks... this is a phenomenon... prices are only fluctuating, not gone anywhere and premiums have surged to 114... up 5 points...

Not to exit... hold till profit is almost 15%

 

[pakatil]

Amit,

120 - 125 is target......rt...?

If not acheived, do we carry to Monday...?

This is my first trade in ur system.......

 

[jamit_05]

Amit,

120 - 125 is target......rt...?

If not acheived, do we carry to Monday...?

This is my first trade in ur system.......

Cost is now 118. We are Rs.10 in profit. That is around 9%... we want at least 12% plus... then we will see momentum and apply a TS.....

As of now... make your bones... learn to hold positions.... let profits get in proportion to the losses.

 

[jamit_05]

You could choose to exit on target... but I would suggest using a sensible Trail Stop to make the best of the EOD momentum... which is sometimes equal to 50% of the profits...

 

[jamit_05]

Whether or not to hold positions beyond EOD?

If today's profits are any good... then we will take them.
If not, then we will carry positions to Monday. Hence, using today's profit as cushion.