iCharts Discussions

[pushkarmore]

m happy with a 10% if its consistant on a daily basis.
u can build a nice castle tht way..

you recommend trading in how many lots with this strategy..?

i usually exit nifty futures in about 15 to 20 pts.

[Arjun20]

[pushkarmore]

M not saying tht i hav a figured options well.. but its pretty simple to decide which strike to select. wat matters is if u hav selected a proper call / put. u want to b on the winning side of the game, dont ya..?

I choose d strike price close to the spotprice (actual index).

Example: Lets say Nifty index is at 5025. Trade in 5000 or 5100 strike price. they will give u the max (and quick) movement.

also, if you are sure of the swing in the market (+ve or -ve) thts when options will fetch u a good return.

I think options is good only when it moves exponentially in one direction. Ideally 30%+ movement either side.

Be well informed of your charges (brokrage and taxes) on ur options transaction. its a flat fee and many mistake it for a traditional % brokerage. (total deductions for options including ur brokerage is: 2.5 X one way brokrage for options)

Make sure to buy a single lot for the first few times till u get the hang of it.

**DO NOT carry your options lots to the next day**

[pushkarmore]

i forgot to mention, in case you want to use this system for put.. use this system as ur using rite now. u get a direction of the market.

if the markets going down, choose puts else choose calls if markets moving up. this tool is great cause u get some direction of the market. which is a huge edge.

make sure u choose the immediate calls/puts for max & quick benefit..

[s.muthuswamy]

Options in-the-money need more invstment than other options.

If you look at the profit percentage out of options trading, OTM options give more. Here too one more poit. Out of all OTM options which gives the most percentage? Let me give an example.

Suppose the current price of NF is 5035. Choose 5200 call options and 4900 put options for max percentage of profit considering the premium.

All this for intraday trading.

S.Muthuswamy.

[pushkarmore]

good pt mate, however OTM is good to hold for a few days for max profit. and in intraday i prefer stickin to immediate strices for a high yield.

u can ride the waves d ups n downs in immediate strikes easily, its diff wid OTM strikes

[vinay28]

from whatever little I have learnt so far

1. in the money option will not give 10% profit unless NF moves more than 10% in any direction but the time value does not exist and hence lesser risk
2. out of money option can give anywhere from 10% to 300% returns per day on good days since I have seen a ratio of 1:4 of lowest to highest prices on some days when NF moves a lot in one direction
3. it is advisable not to buy out of money option that is more than 250 points away from NF and that too only when you are sure that NF is going to move a lot over next 2-3 days. You have to carry that option in that case. So suggestion of muthuswamy is correct
4. it is very important to continuously watch implied volatility of options. I watch every 5 minutes when I have bought. You can calculate implied volatilty as well as projected option value with the help of software available in the following link. The advantage is that you can calculate projected option value for a projected NF value that you have in mind and put a sell order in advance.

http://www.option-price.com/index.php

good luck!

[pushkarmore]

well debatable...

i've had good results doing a combination of both. as in, my intraday profits frm in teh money is wat i use to buy out of money options for a longer time. has given me gud results. day on day 20% yield, thts safer. its not bad i wud say..

hoping tht one of the out of money onees will turn out to b a jackpot in d next few days..

[vinay28]

good for you!

[pushkarmore]

i need to understand the Jcharts for swing trading.. i liked the idea a lot of follwing the market vs. predicting it and then placing the bet.

but almost all of the posts there went like a bouncer. the charts too pasted were lill diff to interpret

is there any easier way of understanding it..?

[vinay28]

I am not aware but the S to R values can give some idea of the range considering open value and target as given by avinash's strategy. it is still guesswork and lots of luck though

[smartcancerian]

Anybody maintaining trade JOURNAL of this excellent method or Just enjoying with the healthy LEDGER.???

[vinst]

MF in intra uptrend

SL 5001, tgt 5077, but at or below 5031.

[sujai1234]

As per today's OHL,tgt 5076 already achieved!!!!!!!!!!what to do next?

[pushkarmore]

lol.. ledger is a good idea.. lets start tht..

btw, as per SId, next target shud be 5108