iCharts Discussions

[hansraj456]

Hi nareshusv

These levels are neither support or resistence levels. These are the points 20-25 away from the nifty spot level at the time of making position. When I made this position nifty was around 4970. So these figures i.e.. 4950 and 5000 are psychological figures, and suited the situation and that's why i selected these levels. I have clarified earlier also I don't understand support, resistences or any other technical levels so far this strategy is concerned. I decide levels just to go long at particular level and go short at particular level. The gap between these two levels must not be more than 100 points. I am taking position in this strategy on the basis of calculation of points and time premium erosion, so nifty resistence or support has nothing to do here. But there may be a coincidence that such level may be support or resistence for technical analysts or traders, but my intention is not such.

[suprithvi]

Thanks hans sir, i was also having the same qtn what naresh was having about support resistant levels. Now jan 4900 call is around 320.jan 5200 put is157,totally comes around 478.can we enter now.If it is so why and why not.if enter means what levels we can take for nifty future long or short.sorry for asking lot of qtns.

[hansraj456]

Hi suprithvi

See, this is wrong. First you have to see where nifty level is now. It is around 5150. So if you want to sell options, Sell 5300 Put and 5000 Call. Premium of 5300 Put is 210 and 5000 Call is 247. So the total premium of both is 457. Now decide the levels where you will go long or short. You can watch out behaviour of nifty future yesterday and previously. It is yet to hit 5190. So go long above 5190. To short the nifty, you can short at 5130.

Note : The above position is just a suggestion and not my specified call. By taking above position you may get about 100-120 points in 2 weeks' time. I will not give any follow-up for this position as I have already taken other position suggested earlier. My next specified call will be around 7-8 Jan.

Thanks

[hansraj456]

I have updated 'Stock' column of this forum. You can see stock calls there.

Thanks

[srinivas121276]

Dear hansaraj
plz provide your yahoo id to explain future and options hedging strategy

with regards,

srinivas.n

[hansraj456]

Hi

Profit calculation of hedging position:

Premium of 4800 Call = 424
Premium of 5100 Put = 96
Total Premium = 520
Nifty Future Points gained = 5020 - 5185 = 165
Points gain at the time of selling both options = 487

Net gain in points 487 - 520 + 165 = 132 Points

Our Target is around 200 points by 7-8 January. If Nifty goes above this level, premium of 5100 Put will come below 50 then will take opportunity to exit. If Nifty goes below current level, value of 4800 call will erode very quickly and gain of premium of 5100 will be very slow, due to time premium erosion. So if Nifty goes up or down from this level, our target of 200 points seems to be achievable.

Thanks

[psrao]

Hans,
Y dont u consider selling call an put of same strike price. (straddle).
As At the Money (ATM) options have highest time value, and ur goal is mainly to capture that, pls think about it.

In the money (ITM) what ur selling (that is called short Box) have very less time value (not premium). Though it appears that ur collecting more premium (400 points) , most of that u have to give back.

For ATM , if u collect 300 points at 5000,and long future as per ur stratergy,
market is going to close any one side of 5000, it cant close either side, hence u will pocket full 300 points.

Moreover when u sell ATM, say 5000 call and nifty moves up, the time value of it decreases as it moves into to ITM. so u will pocket premium plus time value.

You might have thought of it prevoiulsy, want to know ur views

regards
psrao

[hansraj456]

Can you explain in detail with example, please?

[gmdriyaz]

hans,
i think psrao has a point
ur strategy is great but have a look at what psrao says
riyaz

[hansraj456]

Hi gmdriyaz

I have requested him to explain in detail with example as I am not fully able to understand his point. If you have fully understood, kindly let me know more about it. I will test it during next few days and if helps in increasing our profit ratio, I will definitely follow that. But before taking any step, I have to fully sure about it.

Still waiting for response on psrao's comments. Can anyone explain with example, please. I am basically a money manager and calculate the investment (margin or else) and returns on these investment, as I have given examples in the attached file or at the beginning of this column.

Thanks

[hansraj456]

Hi

I have updated my other column 'Nifty Future Positional Swing Trading Calls' under this forum and uploaded file containing my trades during 2009 in Nifty Future.

Any comments are welcome.

Thanks

[gururaj3]

Hans raj sir

Kindly send me the hedging technics to my email id same name at yahoo.co.in

with regards.

Guru.

[bismillah]

i want to know more abt ur hedging technique. kindly send it to mine email id, [CONTENT REMOVED BY ADMIN]

Thnx n regards

[hansraj456]

Hi gururaj, subodh bismillah

I have elaborated everything here and any other information will be shared here at this forum only. Please read this column of forum very carefully and completely and try to understand and ask specific problem or querry. However you can add me at yahoo messenger for chat.

Thanks

[hansraj456]

Hi

Thanks for such an overwhelming response. My humble request to you all. When you get first payout of profit from my strategies, please buy some school bags, pencil boxes, painting colors, toys for poor children studying in community/public schools. This is the only remuneration I want from you all in return of my knowledge sharing and calls.

Thanks