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  #11 (permalink)  
Old 09-03-2009, 12:51 AM
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Originally Posted by dumdum20008 View Post
it s actually due to calculation procedure of OptionOracle( OO), it sometimes goes beyond my head. but u may edit its config to make changes like investment,commisions etc. make them all zero.
i really dont give much attention on strategy summury shown by OO.

true,
my rough math for probability is if breakeven point is at current market price ( that is current month straddle ) ex. written 2600 ce & 2600 pe, we profit most if market close at 2600 at time of expiry, then prob.of winning trade is 50 % & decrease probability by 8 % on every 100 point rise and - 10 % on every 100 point fall ( provided vix is above 35 ) if vix is below 35 then probability model wd be 10 % of 100 point rise and 8 % for every 100 point fall....
sat da ( mitasatyajit ) made an very good excel on it, though his logic is different.
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  #12 (permalink)  
Old 09-03-2009, 01:26 AM
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calender spread - applicable before 5 days of expiry
strategy -



we writen this month call and buy next month call, logic to do this is, 5 days b4 expiry current month option premium decreases by aprx. 5 % and next month option premium decreases by apx. 2.5 % so by writing / shorting this month option u gain net 2.5 % in 5 days...
this is my most feverite strategy, now imp thing is market shouldnt open gap down or up by more than 150 points, and during market hours u need to track ur position.
also brokerage and draw downs...
for drawdowns i do this - i execute this position from brokers office with the help of two operators one execute sell and one buy,
second thing is brokerage..its upto u how far u bargain with it, remember this statergy has very low risk involved so u can leverage your position and also add money in account and trade with bigger lots, this way u may negotiate with broker and earn sumthing healthy in return of some efforts.
Imp thing is drawdowns and brokerages play very very vital role in such option neutral strategies, otherwise most strategies look good in book but hard 2 execute
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  #13 (permalink)  
Old 09-03-2009, 03:13 PM
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write 2600 ce and 2500 pe in backdrop of VAH & VAL and enjoy the PREMIUM with lots of holidays, let the money grow while u sleeping.
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Old 10-03-2009, 12:50 PM
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emmm....
with permision of Ashishda , iwill post my friday cnote, where increased iv in intraday, stuned my trade.
but thats all together game of options
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Old 10-03-2009, 01:14 PM
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dumdum,

I wanted the cnote,for mainly 2 reasons:=

1)On paper 1 can take a Trade (which many often people does) & post.This actually never Helps ,becoz when we start loosing Real Money then the brain becomes hazy & chance of wrong decision.
Right Entry takes care of P/L 100 % time,after the incident people may say i entered at so & so Price.

My actual Moto is to break that internal barrier,we may start with 1 lot of Mini-Nifty,so people can feel comfortable & then with say consequetive Loss ,brain getting fuzzy how we come out (if god willing) of the situation ,how we tackle the Risk.

I make lots of Loss making trades Daily along with few Wins.

2) There will be people trying to disrupt us in Live Mkt ,with ulterior motive.We may atleast Block those Ghost Traders.

Hope my intentions are clear now.

Asish
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  #16 (permalink)  
Old 10-03-2009, 02:34 PM
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second with u asish da
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  #17 (permalink)  
Old 10-03-2009, 08:29 PM
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Originally Posted by uasish View Post
dumdum,

I wanted the cnote,for mainly 2 reasons:=

1)On paper 1 can take a Trade (which many often people does) & post.This actually never Helps ,becoz when we start loosing Real Money then the brain becomes hazy & chance of wrong decision.
Right Entry takes care of P/L 100 % time,after the incident people may say i entered at so & so Price.

My actual Moto is to break that internal barrier,we may start with 1 lot of Mini-Nifty,so people can feel comfortable & then with say consequetive Loss ,brain getting fuzzy how we come out (if god willing) of the situation ,how we tackle the Risk.

I make lots of Loss making trades Daily along with few Wins.

2) There will be people trying to disrupt us in Live Mkt ,with ulterior motive.We may atleast Block those Ghost Traders.

Hope my intentions are clear now.

Asish


tanx da, thats the case with most of us. ( especially was with me, as im new learner towards market via TA path. before that my trading was speculative, self-assessed, broker-public affected.etc, but luckly that was successful for most of time, or actually that was inbuilt in destiny. once i messed up with TA, registered on TJ then there was/is lack of confidence in trades that were the call of TA. It was a littile bit hard to accept that,a particular trade based on theory will/can be success. but slowly things are shapeing correct, perhaps better time ahead as was with my usual speculative trading.)

Da, it means can i post( in your live future thread) my trades and respective cnote, whenever i think its good to share and understanding ??

waiting 4 ur permission.
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  #18 (permalink)  
Old 25-03-2009, 07:28 PM
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Originally Posted by alex View Post
calender spread - applicable before 5 days of expiry
strategy -



we writen this month call and buy next month call, logic to do this is, 5 days b4 expiry current month option premium decreases by aprx. 5 % and next month option premium decreases by apx. 2.5 % so by writing / shorting this month option u gain net 2.5 % in 5 days...
this is my most feverite strategy, now imp thing is market shouldnt open gap down or up by more than 150 points, and during market hours u need to track ur position.
also brokerage and draw downs...
for drawdowns i do this - i execute this position from brokers office with the help of two operators one execute sell and one buy,
second thing is brokerage..its upto u how far u bargain with it, remember this statergy has very low risk involved so u can leverage your position and also add money in account and trade with bigger lots, this way u may negotiate with broker and earn sumthing healthy in return of some efforts.
Imp thing is drawdowns and brokerages play very very vital role in such option neutral strategies, otherwise most strategies look good in book but hard 2 execute

Good strategy Alex .
Its like Covered call in which the buy part of Underlyeing has been replaced with buy of farther month call . Beauty is lesser margin requirement compared to buying underlyeing contract , without sacrificing the risk.

Last edited by Shrees; 25-03-2009 at 07:32 PM.
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  #19 (permalink)  
Old 25-03-2009, 11:16 PM
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http://nooreshtech.co.in/downloads/T...at%20Work2.pdf
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  #20 (permalink)  
Old 25-03-2009, 11:24 PM
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Originally Posted by dumdum20008 View Post
tanx da, thats the case with most of us. ( especially was with me, as im new learner towards market via TA path. before that my trading was speculative, self-assessed, broker-public affected.etc, but luckly that was successful for most of time, or actually that was inbuilt in destiny. once i messed up with TA, registered on TJ then there was/is lack of confidence in trades that were the call of TA. It was a littile bit hard to accept that,a particular trade based on theory will/can be success. but slowly things are shapeing correct, perhaps better time ahead as was with my usual speculative trading.)

Da, it means can i post( in your live future thread) my trades and respective cnote, whenever i think its good to share and understanding ??

waiting 4 ur permission.

Plz do.
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