Regular Income From Markets. Risk Free. Takes no Time

[seetharamank]

wow what a cool approach to the trading keep it up sirji

 

[jamit_05]

There are so many traders and faders making living off of pivot breaks that one can never know for sure who wins or losses unless he is a tad bit more patient than the participants.

 

[jamit_05]

Entry is further postponed to post 1 p.m.

 

[jamit_05]

Ones holding 150 OTM pair needn't fret. The cost of purchase was good. The current cost is 130, down from 141... that is not even 10% fall.... Friday EOD you will have profits.

 

[gurmy.]

Ones holding 150 OTM pair needn't fret. The cost of purchase was good. The current cost is 130, down from 141... that is not even 10% fall.... Friday EOD you will have profits.

think about time decay

150 otm is down by 10% today due to time decay only

if nifty does not give a break out/down today/tomorrow(which is very unlikely at present because all major news are out and there is no trigger for nifty to move
cosiderably) the pair will be down another 10% tomorrow

short strategy is more rewading in present situation

 

[jamit_05]

Intraday average trading range has pretty much bottomed out...

 

[jamit_05]

In agreement.

think about time decay

150 otm is down by 10% today due to time decay only

if nifty does not give a break out/down today/tomorrow(which is very unlikely at present because all major news are out and there is no trigger for nifty to move
cosiderably) the pair will be down another 10% tomorrow

short strategy is more rewading in present situation

Yes, I am in complete agreement. There are times when longs are rewarding and equal number of times when shorts pay-up. But, problem is with margins.

It was our plan to short after a big day... like the Monday... we would have bagged a winning trade... but honestly the percentage returns are poor. margin of Rs.20K+ gets blocked on per options lot shorted... and to short a pair Rs. 42K gets blocked. Whereas in Rs.40K I can get in around 3 to 5 lots long.

Conceptually, shorting is sound, since most of the months prices are simply drifting. But, that kinda work (and equal risk) for 1/5th the profits seems a little demotivating.

Amit.

 

[jamit_05]

Gurmy,

Pair trading based on a Tuesday, Friday and in anticipation of news is bound to be profitable. From what I gather, this pair trading business need not be any more complicated. Simply, take home a minimum of 20% each month... that is the simple intention.

 

[niludeepak]

amit,
i sud take no liberty in suggesting the following,

but u can put the following into consideration and then suggest us that:

when we get a confirmed breakout in a particular direction

can we wind up our loss making leg and let our profit ride

this is wat i have done today bought 5000pe at 69, bought 5200 ce at 79, booked pe at 65, ce at 103

i m very thankful to u for such a nice thread

i ll be cautious in my future endeavours, but i ve learned sum thing good and new

 

[hmp]

I am still holding pair of 50/52 at 68.80 purchased on 18 july12. Now the value is 41.40. Pl. Suggest me what to do. What should have went wrong? Pl. Advice.