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Market Strategy - Day Trading
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Earnings Report Strategy
(Long Strangle )
When the companies releasing their Quarterly earnings report you can use this strategy.
suppose the stock XYZ you are tracking is going to announce the results tomorrow, and trading 250 rs, you could think of buying slightly OTM call , slightly OTM Put.
say 260 CALL, 240 PUT. ( you can decide how many contracts )
so when the price announced tommorrow either the stock will Gap up or gap down according to the report.
If it's goes down Your calls will be worthless, and you can make money in PUTS, If it's goes up you can make money from calls.
make sure that when you are buying that you are not giving more premiums.
Happy options trading...
...
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I think this month series is having most premium embeeded in to it, I agree. how much you want to pay is depend on the various calculation involved with voltility and other things....
In reply to:
OPTION Trading Tips
Posted by :
dijyya
Dear Aru,
Thanks for your suggetion. Actuly I am not against your view, but only write my feelings. I like to trade in option. perssonly beleive you will gat more reward in less risk if play in right time. How much % premium will have to pay for Nifty. Upto January starting of new series Nifty Option are available @ 3% Premium. But now days its cost are anything between 4% to 5%.
Thanks once again, my English is not so good, you have to read between the lines. 
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full market view@stock prices...
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Nifty has support seen at 4330, below that will crash towards 4280. On upside strong resistance seen at 4350, crossing this congestion zone will lead to a spurt towards 4380-4400 levels. So, at present watch from sidelines. ...
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Dear dijyya,
This 20 % rule may not be hold good for a non liquid stock options counters, even the Most traded counter like Reliance have very little volumes and less options in Options side, currently only NIFTY gives that flexibility,
So My 20 % concept is actually based on the investment of 5000 to 8000 per trade, and 20 % works out to 1000 to 1600 rs, I'm sure you can easily have the stop loss in NIFTy options with the above rule.
Generally people used to hedge their entire stock portpolios with Nifty options by giving some premium,You can play with some neutral strategies instead of hedging with futures.
Regards
Aru...
In reply to:
OPTION Trading Tips
Posted by : dijyya
It is not possible all the time to get out 20% loss. Except some liquid counter there are very littel volume in option trade. In liquid counter also jobbing differance are more than 20%. In my experience it is better to carry the option trade to expiry of future. If you are not getting prise for your trade once trade work in your favour it is better idea to hedge the same with Future.
Nifty futures trading at 4370 moving towards our target of 4382,4400 for today
Posted by :
9975797577Tracked by: 0 Boarder
Nifty Futures now trading at 4370 moving towards our target for the day of 4382 and 4400 ......very soon ...
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RN,
I understand, Yesterday most of them were busy buying Calls..
I have a 4500 Long straddle, on top of that I have added one more 4500 CE BUY call at the end at 112.
I have a put Backspread with SELL PUT of 4700 PE, and 2* Buy PUT of 4450 PE.
and for your information getting rich by playing technicals - The markets Follow technicals for sure, But you can not do the Intra day movements with it, because by the time markets opened the advantages will be lost , but some days it might work, ( like the other day it went from 4300 to 4500 - but on that day TA showed weakness )
If you want to make money you need take some neutral strategies and let the market play out for 15 days, so monthly twice you play , with this you don't risk anything other than brokerages. or in some cases you might be risking 10 K per trade. ( That Risk amount you can decide ).
Regards
Aru
...
In reply to:
Market outlook on 04-SEP
Posted by : radhika_nandlal
vam,
I am very disappointed.. i had 4 puts ystday and today a call... of all days it decided to fall ystday.. i wasnt even expecting such a fall.. yes my positiosn are intraday or at best one day this way that... i dont take positions for 15 days etc....really very disappointing...
Did u read azim premji has bought a percentage stake in subhiksha... how do these guys get so rich i wonder... i want to be rich.. if stockmarkets dont follow technicals i will quit and do business... i will watch another week.
I bought one 4500 call ystady at Rs 114... Do u think we have a fair chance to retrace from day's lows... would u go long at day's lows? at least ystay the nifty technicals was bullish.. based on this would u go long.. my net was down whole of ystay and today too its very slow.
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vam,
I am very disappointed.. i had 4 puts ystday and today a call... of all days it decided to fall ystday.. i wasnt even expecting such a fall.. yes my positiosn are intraday or at best one day this way that... i dont take positions for 15 days etc....really very disappointing...
Did u read azim premji has bought a percentage stake in subhiksha... how do these guys get so rich i wonder... i want to be rich.. if stockmarkets dont follow technicals i will quit and do business... i will watch another week.
I bought one 4500 call ystady at Rs 114... Do u think we have a fair chance to retrace from day's lows... would u go long at day's lows? at least ystay the nifty technicals was bullish.. based on this would u go long.. my net was down whole of ystay and today too its very slow....
In reply to:
Market outlook on 04-SEP
Posted by : vam_aru
The problem for the DOW was it was like holding with little volumes and some manipulated reports, and actually the economic reports that they have got is also mixed they started trading around 100 point down at the start, then the bears took control and dragged it there. This was expected any day and it happens to be yesterday,
Technicals and other analyses show some trend only, actually Candlestick technique suggests that they don't enter the market purely by technicals, once the crowd behaviour set's in and the following conformation only we have to enter either short or long.
Well i beleive you don't have 15 days strategy and take positions , is that correct? Normally you take positions like intraday?
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The problem for the DOW was it was like holding with little volumes and some manipulated reports, and actually the economic reports that they have got is also mixed they started trading around 100 point down at the start, then the bears took control and dragged it there. This was expected any day and it happens to be yesterday,
Technicals and other analyses show some trend only, actually Candlestick technique suggests that they don't enter the market purely by technicals, once the crowd behaviour set's in and the following conformation only we have to enter either short or long.
Well i beleive you don't have 15 days strategy and take positions , is that correct? Normally you take positions like intraday?...
In reply to:
Market outlook on 04-SEP
Posted by : radhika_nandlal
Vam,
I bought 4 puts and sold for a song ystday.. i think dow was waiting for me to sell my puts thats why it plunged ystday... what was the big reason for it to plunge ystday anyways?... technically except the bull and bear power favoring bears, the ADX was in fact very bullish for DOW with daybefore close..... absolutely no clue... the whole of this week i thought the oversold TRIN is bearish but our markets acted so resilient, i decided the TRIN pessimism is not playing out and here we are today and me with my 4500 call... simply baffled.
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Vam,
I bought 4 puts and sold for a song ystday.. i think dow was waiting for me to sell my puts thats why it plunged ystday... what was the big reason for it to plunge ystday anyways?... technically except the bull and bear power favoring bears, the ADX was in fact very bullish for DOW with daybefore close..... absolutely no clue... the whole of this week i thought the oversold TRIN is bearish but our markets acted so resilient, i decided the TRIN pessimism is not playing out and here we are today and me with my 4500 call... simply baffled....
In reply to:
Market outlook on 04-SEP
Posted by : vam_aru
By chance if you had your PUTS intact you would have celebrated all the way tomorrow , DOW and nasdaq down 3 %, ( 344 and 74 ) my god, I have wrongly purchased the 4500 CE for 110 rs, along with strategical play. so i think tomorrow My 4500 CE will be in 20 rs .....
Regards
Aru
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US sell off is severe, DOW -344 points, Nasdaq -75 points
whole asia pack is down, Brazil, russia down by 4 %, we are looking at a very weak market sentiment here today morning.
Regards
Aru...
In reply to:
5-SEPTEMBER : Nifty outlook
Posted by : vam_aru
Dear Boarders,
Well the bumpy ride here to continue on 05-SEP as well, This time it will be big.
US markets economic data ( source : nasdaq dot com )
Economic data has also been relatively mixed. The latest jobless data showed weekly claims moved 15,000 higher to 444,000. Continuing claims made a slight advance as well. The trend in payrolls suggests softer employment conditions. As such, economists expect tomorrow's official employment report to show further weakening. Giving a glimpse into what may be in store, the ADP report indicated some 33,000 private payrolls were cut during August.
Though weak labor conditions reflect slower growth they suggest less inflationary pressure. In fact, labor costs ticked 0.5% lower in the second quarter and productivity increased to 4.3% from the previously stated 2.2%, according to recent data.
Separately, the ISM Service Index came in at 50.6 for August, which suggests growth since it is above 50. Economists were expecting a reading of 49.5.
Result : DOW down 280 points , NASDAQ down : 60 Points ( at 2 PM CST )
Positives for us:
OIL down to 107.20
Inflation at 12.34 ( week on week lower )
My gut feeling is that we will lose 100 points tomorrow.
Regards
Aru
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By chance if you had your PUTS intact you would have celebrated all the way tomorrow , DOW and nasdaq down 3 %, ( 344 and 74 ) my god, I have wrongly purchased the 4500 CE for 110 rs, along with strategical play. so i think tomorrow My 4500 CE will be in 20 rs .....
Regards
Aru...
In reply to:
Market outlook on 04-SEP
Posted by : radhika_nandlal
Vam
Good for us since we are stuck in PUTS.. would u come out of your PUTs today... god sent opportunity?? LOL
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On 05-sep the NIFTy might breach 4320 levels....
In reply to:
Nifty makes high of 4494 after we recommended for 4500 levels today
Posted by : 9975797577
Crude is consolidating around these levels before the next hurrican strikes in USA. Lets see that first we analyse but technically crude oil will find stiff resistance in the region of 113-15 levels. On upside, 124 will provide dead resistance to it. So, one should sell on rallies in it with a target of 100 dollars in short term in next 2-3 weeks.
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When to use:
When you are expecting a less voltility or nearing the end of the series where you expect little volatility.
How to use:
SELL 1 ATM PUT ( at the money ), SELL 1 ATM CALL ( at the money )
Example:
If NIFTY is at 4400 and you expect the series will finish anywhere between 4380 to 4420 , then you can SELL one put 4400 PE ,and SELL one Call 4400 CE
Maximum profit: If as per example NIFTY closes at 4400, Total premium taken will be profit.
Maximum Loss: Nifty closing price - any one of the ( Call or put ) strike price is loss. Example if NIFTY closes at 4000 then 400 * 50 rs will be loss.
Note: If you are not sure NIFTY will close in that price you should not employ this strategy.
and using this strategy will be your own decision.
Regards
Aru...
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Dear Boarders,
Well the bumpy ride here to continue on 05-SEP as well, This time it will be big.
US markets economic data ( source : nasdaq dot com )
Economic data has also been relatively mixed. The latest jobless data showed weekly claims moved 15,000 higher to 444,000. Continuing claims made a slight advance as well. The trend in payrolls suggests softer employment conditions. As such, economists expect tomorrow's official employment report to show further weakening. Giving a glimpse into what may be in store, the ADP report indicated some 33,000 private payrolls were cut during August.
Though weak labor conditions reflect slower growth they suggest less inflationary pressure. In fact, labor costs ticked 0.5% lower in the second quarter and productivity increased to 4.3% from the previously stated 2.2%, according to recent data.
Separately, the ISM Service Index came in at 50.6 for August, which suggests growth since it is above 50. Economists were expecting a reading of 49.5.
Result : DOW down 280 points , NASDAQ down : 60 Points ( at 2 PM CST )
Positives for us:
OIL down to 107.20
Inflation at 12.34 ( week on week lower )
My gut feeling is that we will lose 100 points tomorrow.
Regards
Aru...
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