iCharts Discussions

[kdd81]

hello
sir as per ur current call for january , v are long above 5000 level ...suppose on mondayif it moves to 5090 n den starts falling to d level of 5020 ..den can v make sl for d long position to b 5015 ...so dat v dont lose d pts atleast in brokerage ...n rest rules v keep same ... ??
hope my ques is clear to u sir
thanks

[harshkapoor3]

[quote="hansraj456"]You are correct Harsh. It is very easy to say now
With ur due respect sir, i am in no way trying to act smart or critisize u, i am not capable of that, what i was saying that mr. rao has a point, if we can loose more in whipsaws of 3 lots of nifty, in the same way we will make more profit of it, but the point is, what is the benefit of entering into options when the profit is dicdated more by nifty and not by options, no one knows where will nifty going tomorrow, but say ,, as per ur latest hedging position , we all are long abouve 5000, now if nifty open at 4980 tomorrow, we will loose say 60 points, that is 60*50=3000 rs, these points are lost in opeining of trade, now if we try to cover the loss by selling say double lots of nifty tomorrow, then again sir we are betting on nifty fut only to make profit, so its the play of nifty which gives profit, no one knows where it will go, henc we are just following it and not directing it.
I am EXTREMELY SORRY , if in any way i hurt ur sentiments, but it is just a disscuion abt how we can generate more profit no matter ,in any way market trades. I am eargly waithing for ur new set of rules , which i understant will show light on how to deal with whipsaws, which is common to both swing and hedging.


Thanks and redgs
Harsh kapoor

[ajdavid]

Hello sir,

as last month we have seen whipsaws we have lost some points ...but even then it is good strategy .......

we are very eagerly waiting for new set of rules.....from a brilliant analyst


andrew

[abhideep]

Hi all and Mr Hansraj!

First, Am very impressed with your strategy Mr Hansraj!

Because I always wanted something unmonitored, profitable and safe... and was mentally ready to loose 5% of investment for 20% profits!... But this strategy is AWESOME which meets my requirements and at the same time assures 0% loss and a minimum of 15% profits! KUDOS to Mr Hansraj to devicing this strategy.

My observation was that you are using the time decay in options to BEST use with hedging in futures. I have a suggestion, but havent tested it, maybe you can try it as you are more experienced.

In this strategy instead of selling 2 options of the same month, why not pocket more points (say 600 or more) and increase the range (upto +/- 300 instead of +/-150) by selling one option of this month and selling one of the next...BUT continue hedging with futures as per your strategy. This is commonly called as "calendar spread". Again, this suggestion has not been tested by me, needs to be tested for --

(A) more profits by taking advantage of time decay in options. This immediately leads to

(B) which is to purely trade "Intraday with NF" as per your 12EMA and gain profits and not continue holding NF overnight. But this will again turn into being MONITORED instead of unmonitored! Unless we can place simultaneous orders of BUY & SELL in NF which will lead to increase in margin again! Please give it a thought everyone

I hope to contribute more to this strategy and am as eager as you all to improve the Unmonitored, profitable and safe strategy already in place by Mr Hansraj!

Cheers!

[hansraj456]

Hi abhideep

Thanks for your valuable suggestion. I will back-test the ideas given by you and will let u know in coming days.

Thanks

[hansraj456]

Hi All

The members who have not taken a position in Hedging on Friday can take same position on Monday (25 Jan.) if nifty levels come below 5000 and above 4950.

The position given on Friday was as under :

Sell Nifty 4800 Call (Feb) at 250-60 and hold. Go Long if Nifty Fut trades above 5000 and hold till Nifty Fut comes back below 5000

Sell Nifty 5100 Put (Feb) at 215-225 & hold. Go Short if Nifty Fut trades below 4950 and hold till Nifty Fut comes back above 4950

There may be variation in premium of both the options but try to get about 450-480 points.

Thanks.

[hansraj456]

[quote="harshkapoor3"]

[joshiga]

Hi Hans,

i've read through most of your posts.

I've one question though,

Say out decided range is 4950-5000. Suppose we are holding long at 5010 and next day nifty opens and starts trading around 4960, what should we do. Should we exit the long at those levels? That will be straight 40-50 points loss.

How to handle such situations?

thanks for all the help.

[hansraj456]

[rmsharma]

Dear hansraj,

Since it is quite close to expiry, would it be better if we hedge with Nifty Feb futures?

Thanks & regards.

[abhideep]

Hi Mr Hansraj and hi to others too,

rmsharma's suggestion maybe good considering the lesser volatility in Feb futures. But again it needs to be back-tested for more insight on whether we can use the next month's futures as a hedge for the 3rd week positional pick.

I was just curious to see how Jan 4800 ce has behaved, so that we MAY have some insight towards the calendar spread I suggested in my earlier post which was selling 1 option of current month and 1 option of next to make MORE use of time decay!.. here it is (pasted from nse data) ---

Date Expiry Strike Price Settle Price Underlying
Value
18-Jan-2010 28-Jan-2010 4800.00 469.00 5274.85
19-Jan-2010 28-Jan-2010 4800.00 420.75 5225.65
20-Jan-2010 28-Jan-2010 4800.00 416.40 5221.70
21-Jan-2010 28-Jan-2010 4800.00 288.05 5094.15
22-Jan-2010 28-Jan-2010 4800.00 224.00 5036.00


As we can see, If we had sold Jan 4800 CE on 18th or 19th instead of selling Feb CE, the DECAY factor will work MORE towards our favour!... Anyways, Am still waiting for more comments from Hansraj for this method

Cheers

[hansraj456]

[hansraj456]

Hi Abhideep

I will be testing on the basis of your suggestions. A good investor does not takes decision in option selling on the basis of previous performance, but keeping in mind all the pros and cons. We can analyse the data when the things have actually happened but it is very difficult to take position about future, because we cannot visualise the movement of the market. I will be doing paper trade on the points given by you and check these by next week-end and then I will let u know.

Thanks

[bgsalvi]

Hansrajji,
Thanks for your information on brokarage. As i was out of city i could not respond immediately.
Very eagar to know the set of rules for more safe and profitable trades.
Thanks again

[abhideep]

Hi all!

I think good collection today???....

Cheers