3)
So on NR7 day (one can easily find this by last 15min of the day that we are going to get NR7 day today or not.. and even if it is missed by few points that shd not matter), lets we buy ATM straddle (4500 C+4500 P).
On next day, when mkt breaks-out of NR7 range (say downward break), then we sell the losing Long call leg of straddle. and convert remaining Long Put leg into bearish put strategy by selling lower level put.
say 4400 P). So now our new position is = bearish 4400-4500 put spread. As market falls, this spread will gain in value because the Delta of 4500 Long put is lower then Delta of short 4400 put..giving
us net negative delta . That means as market falls, out bearish position will gain.
(hope I am not confusing you here)
If one is aggressive risk taker, then instead of spread, we could very well live with long put 4500 position after closing the call position.
Each of these alternatives have their advantages/disadvantage so certainly, decision making here is not a binary choice..
Happy Trading.
So on NR7 day (one can easily find this by last 15min of the day that we are going to get NR7 day today or not.. and even if it is missed by few points that shd not matter), lets we buy ATM straddle (4500 C+4500 P).
On next day, when mkt breaks-out of NR7 range (say downward break), then we sell the losing Long call leg of straddle. and convert remaining Long Put leg into bearish put strategy by selling lower level put.
say 4400 P). So now our new position is = bearish 4400-4500 put spread. As market falls, this spread will gain in value because the Delta of 4500 Long put is lower then Delta of short 4400 put..giving
us net negative delta . That means as market falls, out bearish position will gain.
(hope I am not confusing you here)
If one is aggressive risk taker, then instead of spread, we could very well live with long put 4500 position after closing the call position.
Each of these alternatives have their advantages/disadvantage so certainly, decision making here is not a binary choice..
Happy Trading.
Mr. AW10 thank you for the reply but i would like to ask u that if the NR7 = yes flag appears then we buy or wat pls do explain it sir pls one example or an illustration for buy sell with this intraday trading system
hope to hear soon
regards
hope to hear soon
regards
if not clear , you can ask further