Friday 9 October 2020

Tuesday 6 October 2020

MARKET-NEUTRAL TRADING

TO GET LIVE CALLS FOR OPTION CALL PUT/STOCK FUTURE/NIFTY FUTURE/STOCK CASH/OPTION STRATEGY JOIN US NOW ON WHATSAPP 9039542248

TRADING WITHOUT A MARKET BIAS

There is a general rule that applies to option trading:
It is important to have more than a single strategy in your trade arsenal because no single strategy is appropriate for all market conditions.
Basically, there are two types of market-neutral trading, based on one of the Greeks that option traders use to risk: Gamma. Market-neutral strategies begin life with neither a bullish nor bearish bias. However, if the market moves higher or lower, they can turn into bullish/bearish positions.
1.       NEGATIVE GAMMA.
Sample strategies: Sell calls or puts; sell calls and puts (straddle, strangle), sell out of the money credit spreads.
When you own positions with negative gamma, the path to earning a profit comes from collecting time decay -- measured by the Greek, Theta -- by holding onto the position as time passes. And time always passes.
However, earning a profit is not that simple because the stock price does not always remain in a narrow area. When the price of the underlying asset (stock or index) changes by enough, then the money lost exceeds the sum earned from Theta, Why? As the stock price moves higher, negative gamma results in the position becoming short an accelerating number of Delta. In other words, your position is short in a rising market (or long in a falling market) -- and that is a money-losing situation.


2.      POSITIVE GAMMA.
Sample strategies: Buy calls or puts when you want to predict direction, or buy calls and puts (straddles and strangles) when you believe that a large price change is coming -- but you do not know whether it will be higher or lower.
Positive gamma positions are for traders who expect the price of the underlying asset to change. The greater the size of the price change, the greater the profit. However, (again) it is not that simple. Theta is working against these positions and the hoped-for price change must occur before the options lose most or all of their value as time passes.
Note that investors who adopt a buy-and-hold strategy -- who want to remain fully invested at all times -- can still find a strategy that allows them to collect Theta. They can write covered calls. But more active traders must pay attention to current market conditions and be certain that their chosen strategy is appropriate.

I trade with a market neutral bias almost all the time, for a very simplistic reason: I do not know, in advance, in which direction the market will be moving over the lifetime of the options in the position. This is especially true when trading very short-term options, or Weeklys. In addition, ‘market neutral’ is my comfort zone.
We agree that predicting the market remains a difficult game for the vast majority of traders. However, the beauty of using options is that there is an option strategy that will profit under any specific market condition -- as long as you are skilled in predicting what those market conditions will be. It is important to never get overconfident and to always trade appropriate position size because that is the first step in successful risk management.

Thursday 1 October 2020

OCTOBER SERIES OPTION CALL PUT TIPS SO FAR

 FOR SUCH CALLS JOIN US NOW ON WHATSAPP 9039542248


DATE

SCRIP

STRIKE PRICE

MONTH

OPTION TYPE

LOT

RECO

RATE

BOOKED AT 1

Profit / Loss

 

 

 

 

 

 

 

 

 

T1

 

 

 

 

 

 

 

 

 

 

1-Oct-20

BANKNIFTY

21800

01-Oct

CALL

25

LONG

90

145

1375.00

30-Sep-20

NIFTY

11500

OCT

CALL

75

LONG

112

145

2475.00

30-Sep-20

CANBK

95

OCT

CALL

5000

LONG

2.2

3

4000.00

30-Sep-20

NIFTY

11100

01-Oct

PUT

75

LONG

27

11

1200.00

30-Sep-20

PNB

28

OCT

PUT

14000

LONG

1.1

1.8

9800.00

30-Sep-20

BANKNIFTY

21400

01-Oct

CALL

25

LONG

130

95

875.00

29-Sep-20

VEDL

155

OCT

CALL

6200

LONG

3.5

3.5

0.00

29-Sep-20

BANKNIFTY

21300

01-Oct

PUT

25

LONG

190

225

875.00

29-Sep-20

BANKNIFTY

21500

01-Oct

PUT

25

LONG

200

299

2475.00

29-Sep-20

NIFTY

11400

01-Oct

CALL

75

LONG

23

23

0.00

28-Sep-20

NIFTY

11300

01-Oct

CALL

75

LONG

31

56

1875.00

28-Sep-20

TATACHEM

320

OCT

CALL

2000

LONG

5.7

6.7

2000.00

28-Sep-20

TATASTEEL

380

OCT

CALL

1700

LONG

10.7

12.25

2635.00

28-Sep-20

NIFTY

11200

01-Oct

CALL

75

LONG

47

56

675.00

25-Sep-20

DLF

165

OCT

CALL

3300

LONG

4.8

5.9

3630.00

25-Sep-20

NIFTY

11000

01-Oct

CALL

75

LONG

76

87

825.00

24-Sep-20

BANKBARODA

39

OCT

PUT

8200

LONG

1.8

1.9

820.00

24-Sep-20

HINDALCO

180

OCT

CALL

4300

LONG

3.8

4.8

4300.00

24-Sep-20

RBLBANK

140

OCT

PUT

2600

LONG

4.9

5.4

1300.00

24-Sep-20

NIFTY

10950

SEP

PUT

75

LONG

19

28

675.00

23-Sep-20

BANKNIFTY

20600

01-Oct

PUT

25

LONG

310

250

1500.00

23-Sep-20

AXISBANK

380

OCT

PUT

1200

LONG

12.3

12.3

0.00

23-Sep-20

DLF

165

OCT

CALL

3300

LONG

5.8

6.45

2145.00