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Fibo 15 Support Resistance Intraday |
taruj
White Belt
Joined: 20 Apr 2011
Posts: 260
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Post: #541  Posted: Tue Jun 25, 2013 6:47 pm Post subject: |
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| cliff23 wrote: | Hi Taruj,
I have subscribed for F/O only, any ways I dont want to discuss about it since we cannot here ,I would just like to know whether to follow cash or future charts for trading options.Even today the levels were bang on for Rcom future levels.But my trading is bad could not capitalize on it.S i really don't know what to do.Actually i was using I chart platinum for a month and then my cousin has left for Canada so he gave me his lap top along with [Content Edited by Admin] |
Sir,
simple hai na!! Spot or Futures, you see an up move (trend bullish) buy call, you see down move (bearish) buy puts.
if you don't have spot chart use futures. After all lets say spot rises, futures will rise and calls with also rise. no?
Keep it simple. If Futures charts and Options combo is working let it. why worry?
See you need a few things.
Way to know what is the trend (up,down), SL and target.
You get that using futures charts, good. You get that using spot chart amazing!!
You get it by any means, that's all you need. Trend, Stop loss, Target.
 Make money not tension  |
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sushrut
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Joined: 27 Apr 2012
Posts: 32
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| Post: #542 Posted: Tue Jun 25, 2013 7:04 pm Post subject: |
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| option and future are 2 derivatives of cash equity so u decide |
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saumya12
Brown Belt
Joined: 21 Dec 2011
Posts: 1509
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| Post: #543 Posted: Tue Jun 25, 2013 8:12 pm Post subject: |
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We have 3 types of charts that an option trader can follow,
1. Spot chart
2. Future Chart
3. Option chart (of that particular strike)
IMO, it is best to use Option chart but as option charts are not readily available, one can use any spot or future, as per his choice and availability.
But a precaution must be taken,
Dont mix up the 2, spot and future at a time.
However, if one is likely to trade options on a regular basis then one must subscribe for option charts. |
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apka
Black Belt
Joined: 13 Dec 2011
Posts: 6137
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| Post: #544 Posted: Tue Jun 25, 2013 8:14 pm Post subject: |
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| saumya12 wrote: | We have 3 types of charts that an option trader can follow,
1. Spot chart
2. Future Chart
3. Option chart (of that particular strike)
IMO, it is best to use Option chart but as option charts are not readily available, one can use any spot or future, as per his choice and availability.
But a precaution must be taken,
Dont mix up the 2, spot and future at a time.
However, if one is likely to trade options on a regular basis then one must subscribe for option charts. |
saumya i dont know, it seems premium loss will change option chart while index / stock can behave in accordance to its chart nrmlly.
can anyone who uses option charts verify its reliability in comparison to spot and future? |
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saumya12
Brown Belt
Joined: 21 Dec 2011
Posts: 1509
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| Post: #545 Posted: Tue Jun 25, 2013 8:27 pm Post subject: |
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| apka wrote: | | saumya12 wrote: | We have 3 types of charts that an option trader can follow,
1. Spot chart
2. Future Chart
3. Option chart (of that particular strike)
IMO, it is best to use Option chart but as option charts are not readily available, one can use any spot or future, as per his choice and availability.
But a precaution must be taken,
Dont mix up the 2, spot and future at a time.
However, if one is likely to trade options on a regular basis then one must subscribe for option charts. |
saumya i dont know, it seems premium loss will change option chart while index / stock can behave in accordance to its chart nrmlly.
can anyone who uses option charts verify its reliability in comparison to spot and future? |
Yes you are right,
But you will buy/sell as per option values and not as per future/spot value.
Moreover, I dont think one can factor premium loss in ITM options.
I have RT Nifty and other stocks option charts (as per my need) but normally I use future chart/prices, as it is just difficult to synchronise between future and options charts, when you trade in few stocks and indices. |
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vinay28
Black Belt
Joined: 24 Dec 2010
Posts: 11748
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| Post: #546 Posted: Tue Jun 25, 2013 8:54 pm Post subject: |
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| saumya12 wrote: | | apka wrote: | | saumya12 wrote: | We have 3 types of charts that an option trader can follow,
1. Spot chart
2. Future Chart
3. Option chart (of that particular strike)
IMO, it is best to use Option chart but as option charts are not readily available, one can use any spot or future, as per his choice and availability.
But a precaution must be taken,
Dont mix up the 2, spot and future at a time.
However, if one is likely to trade options on a regular basis then one must subscribe for option charts. |
saumya i dont know, it seems premium loss will change option chart while index / stock can behave in accordance to its chart nrmlly.
can anyone who uses option charts verify its reliability in comparison to spot and future? |
Yes you are right,
But you will buy/sell as per option values and not as per future/spot value.
Moreover, I dont think one can factor premium loss in ITM options.
I have RT Nifty and other stocks option charts (as per my need) but normally I use future chart/prices, as it is just difficult to synchronise between future and options charts, when you trade in few stocks and indices. |
if you are trading in options, you must use option chart. it's movement vis-a-vis NF gives a good idea about whether it is being written or bought, well in advance before NF starts reacting. e.g. today 5800ce for july gave clear hint that nifty will fall from the high. |
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apka
Black Belt
Joined: 13 Dec 2011
Posts: 6137
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| Post: #547 Posted: Tue Jun 25, 2013 9:33 pm Post subject: |
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| vinay28 wrote: | | if you are trading in options, you must use option chart. it's movement vis-a-vis NF gives a good idea about whether it is being written or bought, well in advance before NF starts reacting. e.g. today 5800ce for july gave clear hint that nifty will fall from the high. |
intraday yes vinay, but premium loss will change the pattern of option chart:
today in mrng nifty low was near 5570 and 5600ce low was near 32,
EOD nifty closed above 5600 and 5600ce has closed at 33-34,
Earlier in mrng when nifty at todays closing price 5600ce was 45+
its what i meant, how option chart is useful for next day |
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vinay28
Black Belt
Joined: 24 Dec 2010
Posts: 11748
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| Post: #548 Posted: Tue Jun 25, 2013 9:40 pm Post subject: |
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| apka wrote: | | vinay28 wrote: | | if you are trading in options, you must use option chart. it's movement vis-a-vis NF gives a good idea about whether it is being written or bought, well in advance before NF starts reacting. e.g. today 5800ce for july gave clear hint that nifty will fall from the high. |
intraday yes vinay, but premium loss will change the pattern of option chart:
today in mrng nifty low was near 5570 and 5600ce low was near 32,
EOD nifty closed above 5600 and 5600ce has closed at 33-34,
Earlier in mrng when nifty at todays closing price 5600ce was 45+
its what i meant, how option chart is useful for next day |
that's the point apka. option chart tells you to book if you see premium (IV) is falling whether due to time decay or due to it being written. And if you are trading positionally, you are supposed to track its premium. I don't understand what your concern is. The important point is you must follow option chart if you are trading in options. |
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saumya12
Brown Belt
Joined: 21 Dec 2011
Posts: 1509
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| Post: #549 Posted: Tue Jun 25, 2013 9:43 pm Post subject: |
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| vinay28 wrote: | | saumya12 wrote: | | apka wrote: | | saumya12 wrote: | We have 3 types of charts that an option trader can follow,
1. Spot chart
2. Future Chart
3. Option chart (of that particular strike)
IMO, it is best to use Option chart but as option charts are not readily available, one can use any spot or future, as per his choice and availability.
But a precaution must be taken,
Dont mix up the 2, spot and future at a time.
However, if one is likely to trade options on a regular basis then one must subscribe for option charts. |
saumya i dont know, it seems premium loss will change option chart while index / stock can behave in accordance to its chart nrmlly.
can anyone who uses option charts verify its reliability in comparison to spot and future? |
Yes you are right,
But you will buy/sell as per option values and not as per future/spot value.
Moreover, I dont think one can factor premium loss in ITM options.
I have RT Nifty and other stocks option charts (as per my need) but normally I use future chart/prices, as it is just difficult to synchronise between future and options charts, when you trade in few stocks and indices. |
if you are trading in options, you must use option chart. it's movement vis-a-vis NF gives a good idea about whether it is being written or bought, well in advance before NF starts reacting. e.g. today 5800ce for july gave clear hint that nifty will fall from the high. |
Hi Vinay
Couldnt get what you want to convey (the hint).
Please clear the doubt by a chart
Or I will post the chart 5 min tf of Jul 5800C and you point out that hint.
Thanks
Last edited by saumya12 on Tue Jun 25, 2013 9:46 pm; edited 1 time in total |
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apka
Black Belt
Joined: 13 Dec 2011
Posts: 6137
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| Post: #550 Posted: Tue Jun 25, 2013 9:45 pm Post subject: |
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| vinay28 wrote: | | apka wrote: | | vinay28 wrote: | | if you are trading in options, you must use option chart. it's movement vis-a-vis NF gives a good idea about whether it is being written or bought, well in advance before NF starts reacting. e.g. today 5800ce for july gave clear hint that nifty will fall from the high. |
intraday yes vinay, but premium loss will change the pattern of option chart:
today in mrng nifty low was near 5570 and 5600ce low was near 32,
EOD nifty closed above 5600 and 5600ce has closed at 33-34,
Earlier in mrng when nifty at todays closing price 5600ce was 45+
its what i meant, how option chart is useful for next day |
that's the point apka. option chart tells you to book if you see premium (IV) is falling whether due to time decay or due to it being written. And if you are trading positionally, you are supposed to track its premium. I don't understand what your concern is. The important point is you must follow option chart if you are trading in options. |
ok. i just mean, in chart of option... price may keep breaching lows forcing u to exit, but nifty may keep holding levels and move up later... i try to trade options as per nifty levels |
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taruj
White Belt
Joined: 20 Apr 2011
Posts: 260
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| Post: #551 Posted: Tue Jun 25, 2013 10:14 pm Post subject: |
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Thank you apka, vinay28, saumya12,
I only trade ATM options, intraday and use spot, futures and options charts.
Since this thread is about intraday techniques hence not writing about time decay, moneyness, timing etc
Regards,
Taruj
Last edited by taruj on Wed Jun 26, 2013 11:14 am; edited 1 time in total |
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dhdaarya
White Belt
Joined: 13 Apr 2012
Posts: 38
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| Post: #552 Posted: Tue Jun 25, 2013 10:36 pm Post subject: |
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Guys as I have observed options keep reacting differently at different times i.e when any series starts the volatility remains lower side relatively and options move in tandem with future prices. As expiry closes moves becomes volatile and at that time ATM and OTM gives wild moves depending on future values.
As vinay sir said we have to trade options looking at option chart. Also sometimes happens that nf moves quite first and then option react but it happens when one trend is quite strong and opposite move trying to take place.
Some people trade options with stoplosses of nifty futures. One can try that with own risk appetite.
As the end of series comes stoplosses with pure option chart becomes quite wide and u will notice that volatility becomes quite high for ATM and OTM options.
trade safe with stoplosses and money management.
preserve capital
BE FEARLESS
KEEP TARGETS
ALLTHE BEST
 [/b] |
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vinay28
Black Belt
Joined: 24 Dec 2010
Posts: 11748
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| Post: #553 Posted: Wed Jun 26, 2013 8:54 am Post subject: |
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| apka wrote: | | ok. i just mean, in chart of option... price may keep breaching lows forcing u to exit, but nifty may keep holding levels and move up later... i try to trade options as per nifty levels |
now I think I know what your problem is. SL right? For that you should use option calculator, which gives you fairly accurate values of options at any nifty level considering time remaining. If it doesn't reach the value, it means something is wrong about it, which is a alert. You can similarly get value at nifty target also. |
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cliff23
White Belt
Joined: 18 Mar 2013
Posts: 60
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| Post: #554 Posted: Wed Jun 26, 2013 9:05 am Post subject: |
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Hi Twist ,
I had put the daily high low of Rcom 115 pe in the calculator.The -161 and -2.61 values are showing minus values ie(-1.9, -6.8, -9.8,-14.7) is it right.By the way the High Low is 6 and 1.1.Please advice
Thanks |
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dhdaarya
White Belt
Joined: 13 Apr 2012
Posts: 38
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| Post: #555 Posted: Wed Jun 26, 2013 9:18 am Post subject: |
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| cliff bhai calculation is all right. but below zero it doesn't matter |
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