iCharts Discussions

[gmdriyaz]

hans,

gmdriyaz

[hansraj456]

Hi

I have submitted the rules for Nifty Future Positional Swing Trading in another section of this forum and also first call for next trading day. Please go through the rules of the game and submit your suggestion and queries.

Thanks

[greatshiva]

HansRaj,

Thanks for your strategy.

When you say buy NF above 4950 and sell below 4900 etc...

Most of the time , NF keeps crossing these levels in a day...

Is it possible to keep selling and buying as many times as nifty keep crosing levels...

[hansraj456]

Yeah. It is possible. I have been doing so for last 5 months. Got stuck two times in so many trades for nifty future. And I book loss for few points, say 10-15 points. Remember those points. Next time when get chance for hedging in nifty future, go for two lots instead of one, this time if nifty moves substantially, exit one lot when lost points are recovered and hold the other one. Suppose this time it again dodges, do it again next time. I am doing in this way to handle such situation. Some time it gives good bonus points also. For example I went long on 23 Dec at 5020. I was to go long at 5000, but got chance at 5020. So I traded two lots (for one position) and held the long position. Idea was to exit one lot at 5040 level, but suddenly from 5040 it went across 5080 and so on, I placed SL at 5040 and left it to nifty, ultimately I exited at 5160 level, hence instead of covering 20 points, I got 140 points. But I have explained earlier, it's a luck. The moment it reached 5080 I placed bid for SL of 5040 but instead of coming down, it went up. I followed the rule strictly and just placed bids and exited at later part of that day when I got a call from my broker few minutes before the close of the market. Even if SL of 5040 would have been triggered, I should not have been at loss. I mean to say, such situations come on the way, you just have to react keeping in mind the rules and experiences I have shared in this forum.

Thanks

[rajanmadhavan]

Very nice proven work and guidance.thanks a lot for your deligent suport

Regards
M.Rajan

[hansraj456]

One more clarification : Never apply this strategy for Stock Options. You may be caught at wrong side because as per SEBI/Exchange guidelines, stock options can be exercised on any trading day after close of the market before expiry of the contract month whereas the index options can be exercised only on the date of expiry after close of the market. So please don't apply this method to stock options and stick to index options only.

[venkkatshiv]

Please provide me with your contact ID. My e-mail ID is [CONTENT REMOVED BY ADMIN] just for a quick chat. I need few clarifications from you. Thanks in advance... Can [quote] sorry . I wanted to know when we should purchase the NF's. I mean the long and short possions, Is it on the same day of selling call and put options.Is it necessary to go for both in NF.that is long and short at the same day or according to the market.I mean either short or long in NF.I am new to options and futures trading kindly explain. sorry for troubling you.I am a pensioner , I lost lot
of money in intraday trades.Now I want to be very careful and secure trading.Kindly advise .Thanks a lot for your hard work, I really pray for your strategy to work well, to all traders,Particularly like me who wants limited and definate source of income.Thank you my dear,WISH A HAPPY NEW YEAR.MAY THE NEW YEAR BRING A PROSPEROUS AND HAPPY TRADING. venkkatshiv.

[hansraj456]

Hi All

Please do not ask for replies on your email or cell phone. Please ask ur questions here in open forum. All the answers u will get here. PLEASE ABIDE BY FORUM RULES. Please.............

[hansraj456]

Hi

Profit calculation of hedging position:

Premium of 4800 Call = 430
Premium of 5100 Put = 95
Total Premium = 525
Nifty Future Points gained = 5020 - 5194 = 174
Points gain at the time of selling both options = 487

Net gain in points 487 - 525 + 175 = 136 Points

We were to go long at 5000 level but could get chance to go long at 5020. Although, we recovered 20 points shortfall by going long on two lots upto 5040. But being on conservative side, we are calculating our profit from th level of nifty future at 5020.

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 about 200 points seems to be achievable.

Thanks

[serenshri]

Hi Raj

New to options, what will happen even by expiry of options contract I am not buying back the sell options of my options

Will system automatically calculate profit/loss based on closing price of last day of the contract ?

Regards

Sridhar

[hansraj456]

Hi serenshri

If you don't square-off your position, exchange will square-off your position on expiry date after close of the market.

[psrao]

Hans,
sorry was out for vacation.
To explain i dont have real time example.
So i request you to repeat the trading u have done for any of the month,
only difference being , instead of selling put and call of different strike price, sell them of same strike price and whick is near to NF value at that moment.

Eg NF at 5005
Sell call SP 5000
Sell put SP 5000.

You all other rules remain same.
With this ur margin for selling the options will also reduce as premium is less hence increasing ur ROR

regards
psrao

[hansraj456]

Hi psrao

I tested that with the help of some other person. and found that net margin remains almost same and profit also remains almost same. Your suggestion was very good and I will be testing on this for next 1-2 months. Only then we actually will come to know, if it makes sure and big difference, I will definitely switch over to your suggestion. Please keep in touch at this forum and you can send me PM also at this forum. Thanks.

[psrao]

Hans see the example Jan option rates,

NF 5195

Your stratergy-
5100 CE 196
5300 PE 182
total premium collected = 378

My proposal-
5200 CE 135
5200 PE 132
total premium collected = 267


Suppose NF expires at 5200 on 28jan

Your stratergy-
Gain on NF 5
you have to give 300 points CE and PE combined, So gain = (378 -300) = 78
total 78+5= 83

My proposal-
Gain on NF 5
Gain on 5200 CE 135 (full premium retained)
Gain 5200PE (132-5) = 127
Total gain 5+127+135= 267

So it is 267/83 =3.3, almost 330% more gain than tahe strtergy u following, ofcouse this is the best scenario for my proposal/advice to u.
It will reduce if doesnt NF closes at 5200.

Request you to calucalate same way for NF close at 5300, 5400, 5100,5000 etc

regards
psrao

[suprithvi]

sorry