TARGET :500 Nifty points per month...!

[simple_trader]

Hi Linkon/AW10,

I have following position.
2lot of 5000CE sold at 255
2lots of 5400PE sold at 150.


Initially I had taken only first position when market was around 5200 & I was expecting it to go down. But it did not happen. hence added two lots of 5400PE to hedge it.
This is just keeping me in no loss no profit zone in the range of 5000 to 5400.

If market moves to 5500 then I will be shorting one more lot of 5000CE @520. This will make me profitable below 5500 till 4800
OR if I short four more lot of 5400PE @130 then I will be profitable above 5260 to 5600.
But I am not sure which way to select. Pls advice based on technicals.

Also do let me know if I can do something else with this positions to cover myself from 4900 to 5600

I have only one thing to add here. If wish to trade this kind of pair, then do trade in paid and take both positions at a time.

As per my tracking, it gives decent return. Write on the day of expiry or the day before, you would get real value + 80-100. One needs to be clever to choose the range, so that position can be held for next 15 days.

Normally premium comes down to intrinsic value + 20-30 odd easily.

Hope this helps!

 

[linkon7]

But in case market remains in a tight range like last 5-7 days then will he not lose his big premium on 5300 long straddle rather then 5400 & 5200 strangle. Today also 5300 straddle lost another 10 points.
Could you please calculate profit of his position below 5200 & above 5400... even we don't know that when will market break its range & eating his straddle premium fast.

Its been 6 days we are grinding in the same range and sooner or later we will either shift the range up or down... The buildup is heavy in NF with already 3 cr in OI with yesterday adding another 61 L. Now you are expecting another 5-7 days in the same range.. then the buildup would be even stronger.... with so much liverage, we can easily head 5-7% either ways... People who are trapped on the losing side will ensure that the momentum continues in the direction of breakout...

A look at the OI build up at 5200 put or at 5400 call.... reinforces this belief...

5300 straddle is loosing premium...but with so many days left its like a time bomb waiting to explode in either direction...

 

[rrmhatre72]

I have only one thing to add here. If wish to trade this kind of pair, then do trade in paid and take both positions at a time.

As per my tracking, it gives decent return. Write on the day of expiry or the day before, you would get real value + 80-100. One needs to be clever to choose the range, so that position can be held for next 15 days.

Normally premium comes down to intrinsic value + 20-30 odd easily.

Hope this helps!

Thanks Linkon/AW10/ Simple trader.

I agree there is no gain in this position at this moment & I should have taken both the position at a time.
If I short one more lot of both the positions at current rate i.e. 5000ce @330 & 5400pe@160 then I will be gaining few points if market is in the range of 5000 to 5400. but as AW said ROI will be very small.
I would like to know your views on market.
Most of the discussion indicate market will go to max 5500 level & come back to 5000 before expiry. Just would like to know your views on market based on your analysis.

 

[Subhadip]

what will be my chance of profit if i sell nifty call 5500 @12 & sell nifty put 4800 @ 11 ..
what do u say about the strategy..
my view of market is range bound..

 

[linkon7]

what will be my chance of profit if i sell nifty call 5500 @12 & sell nifty put 4800 @ 11 ..
what do u say about the strategy..
my view of market is range bound..

we have been trading in a narrow range for almost 11 days....
the pause of this length gives at least 127% (5524) to 161% (5724) of the range

what u r gaining is about 23 points... and with 15 trading days left in the series... its not a very wise trade...

 

[Subhadip]

thank u sir..
atlast i bought nifty 5200 put @ 53.5 ...& nifty 5400 call @ 59...
i do not know what will happen
but i m taking chance..
if nifty goes towards 5500 .. i ll get profit from 5400 call more than 5200 put..
and if it is going down i ll get profit from nifty 5200 put..
but if it remain in range of 5200 & 5400.. then i m loosing everything..
what do u say guys...

 

[vssoma]

..................

 

[vssoma]

thank u sir..
atlast i bought nifty 5200 put @ 53.5 ...& nifty 5400 call @ 59...
i do not know what will happen
but i m taking chance..
if nifty goes towards 5500 .. i ll get profit from 5400 call more than 5200 put..
and if it is going down i ll get profit from nifty 5200 put..
but if it remain in range of 5200 & 5400.. then i m loosing everything..
what do u say guys...

dear, take a look at you the picture, a picture tells more than words.
rest linkon will elaborate more.

 

[Subhadip]

thank u sir..
also one more question..
please help me this way..
i m from kolkata..
trading through sharekhan..
intraday 5 paisa, delivery 30 paisa, and future and option 80 rs a lot or 1.5% whichever is higher,,
plus other taxes ..
what do u say guys,,
i m having high brokerage ..
what do i do?

 

[ksesha]

Unfortunately you will not be making any money till nifty crosses 5085 -5515

thank u sir..
atlast i bought nifty 5200 put @ 53.5 ...& nifty 5400 call @ 59...
i do not know what will happen
but i m taking chance..
if nifty goes towards 5500 .. i ll get profit from 5400 call more than 5200 put..
and if it is going down i ll get profit from nifty 5200 put..
but if it remain in range of 5200 & 5400.. then i m loosing everything..
what do u say guys...