TARGET :500 Nifty points per month...!

[linkon7]

hi Link,

i have a general query regarding option premium eating strategies(like short straddle/short stranggle).

Will the raise in price (say nifty index) increase the risk in these strategies?

Because, for example consider the following scenario:
- nifty was trading around 4000 level
- the call/put option price of 4000 strike is 100/100 respectively.

Now the strategies helps you to be relax between 3800-4200 range as you wont loose anything. This means that you can afford raise in NIFTY by 5%.

But considering the current scenario where NIFTY is trading at 6300 and the corresponding call/put @ 6300 price is say 100/100 respectively. Then you can relax btwn 6100-6500 range.
This is same 400 points range as incase of when nifty@4000 , but when you see closely, now when nifty raise by just 3.1% you wll be in danger.

And when Nifty price raises on and on to say 10000, then just a 2% raise can put you in danger spot, which can happen in a day... But when Nifty price is less around 4000, you can be little relaxed(comparatively) as 5% raise is big for a day.

Just want to understand that whether these strategies will be @ more risk when the underlying price tempt to cross your safe range by mere % raise.

Thanks,
summasumma

My strategy is meant for more proactive traders... My idea is to use a short straddle to hedge NF positions and not just eat the premium by hoping nifty oscillates between a range. If nifty breaks the range and never returns to that level for the entire series, i'll be grinning from ear to ear...

Only fear factor is basically a gap up or gap down against the positions held... As that would call for some fast positional readjustments... otherwise most of the time i can afford to sit idle... of just job it for a few points...

 

[scplindia]

What about october, long or short nifty for expiry

 

[praveen taneja]

What about october, long or short nifty for expiry

:rofl::rofl::rofl:
Bro is it of 2011-2012-2013 which year

 

[scplindia]

:rofl::rofl::rofl:
Bro is it of 2011-2012-2013 which year

Sorry ment NOV Expiry 2010

 

[RAWT]

Hi link, plz suggest option strtegy for nifty or stock for april series