Stock future positional trading ideas

[Tradewithhunter]

Dear TWH,

Is it always advisable to hedge futures position with options?

-
Thanks
Bhavya

yes, once position moves in good profit, its always good to lock in profits or minimise loss through options.

Cheers
SH

 

[srri]

Nifty spot - bought at 8273, now at 8550. Long term SL stays at 8250, medium term at 8340 and short term at 8440. Position is in 275 point profit and 100% hedged with 8500 puts bought last week to lock in profits.

Dear Sir,
Is this long trade continue? Are you aiming Nifty spot at 9000?

 

[Tradewithhunter]

Nifty spot - bought at 8273, now at 8550. Long term SL stays at 8250, medium term at 8340 and short term at 8440. Position is in 275 point profit and 100% hedged with 8500 puts bought last week to lock in profits.

Dear Sir,
Is this long trade continue? Are you aiming Nifty spot at 9000?

Yes the trade continues....mkts are overbought today in teh short term so I expect mkts to cool down for the rest of the week.

Cheers
SH

 

[Tradewithhunter]

Nifty spot - bought at 8273, now at 8550. Long term SL stays at 8250, medium term at 8340 and short term at 8440. Position is in 275 point profit and 100% hedged with 8500 puts bought last week to lock in profits.

SAIL spot - sold at 77.85, now at 76.85. Continued to hold.

JustDial spot - Bought at 1523 today, held.

IDBI spot - Bought at 75.40 today, held.

Cheers
SH

Nifty spot bought at 8273, now at 8730. Short term SL moves to 8650 now.

SAIL spot - Sold at 77.85, now at 76.75. Continue to be held.

Justdial spot - Bought at 1523, now at 1536. Continue to be held.

IDBI spot - Bought at 75.40, now at 76.65. Continue to be held.


Please note all trades are actually being taken in futures but prices being followed are spot.

Cheers
SH

 

[sangram1705]

trades are in current month futures or near month. are you planning to rollover, or sqr off at expiry?

if you are going to rollover, will you wait for pullback?

 

[Tradewithhunter]

trades are in current month futures or near month. are you planning to rollover, or sqr off at expiry?

if you are going to rollover, will you wait for pullback?

right now in current month, yes will rollover next week before expiry to stay in the trade...

Cheers
SH

 

[moneywise]

Nifty spot bought at 8273, now at 8730. Short term SL moves to 8650 now.

Please note all trades are actually being taken in futures but prices being followed are spot.

Cheers
SH

Sir is there any specific reason behind following prices in spot market but carrying out trades in futures? I mean do the spot rates present a better view of the market than the rates in the futures market?

 

[Tradewithhunter]

Sir is there any specific reason behind following prices in spot market but carrying out trades in futures? I mean do the spot rates present a better view of the market than the rates in the futures market?

Yes, this is my personal belief as the future price charts often get distorted due to premiums/discounts.

Also, the charts change dramatically once the current month expires if I follow the futures charts. Unnecessary gap ups/downs appear a day after expiry even if the cash price hasnt moved at all.

Cheers
SH

 

[raul12]

Yes, this is my personal belief as the future price charts often get distorted due to premiums/discounts.

Also, the charts change dramatically once the current month expires if I follow the futures charts. Unnecessary gap ups/downs appear a day after expiry even if the cash price hasnt moved at all.

Cheers
SH

Dear TWH,

While taking positions in options also, is it advisable to trade solely basis the spot price?

I'm asking because in case of Out of money options, usually there is little or no change in price even when the spot price has moved by 1-1.5%.

PS: I'm a beginner in options feild so pls don't mind if my question is too silly

 

[Tradewithhunter]

Dear TWH,

While taking positions in options also, is it advisable to trade solely basis the spot price?

I'm asking because in case of Out of money options, usually there is little or no change in price even when the spot price has moved by 1-1.5%.

PS: I'm a beginner in options feild so pls don't mind if my question is too silly

Yeah - clearly a beginners question. Yes you can trade in options based on cash price however how many options have liquid out of the money calls/puts?

Even if they have liquidity, out of money options will move only once the stock price has moved quickly in your dierection, 1% up and down is nothing for stocks.

Cheers
SH