Everything about options, drop your experience, suggestions, strategy here

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

Every market has its own needs, own characters, indian option market is still in development stage, not much full time traders choose to trade options, if use the sophisticated knowledge of technical analysis, and using probability logic we can found lethal combination.
Besides those fancy option softwares viz. optionvue etc.. which not that useful for indian markets i found indian software optionoracle quite handy
Its free to use, here is download link
http://www.samoasky.com/download.html

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

Thanks alex..hope to learn some really good do's and dont's in options..

OK,

first is very handy strategy, really worked and should try every one.
I had posted some on this in TJ's bandlab2 threads, but now here.

Setup
-------------
On every last friday (means before last week of expiry)of expiry, especially in betwwen 9:55-10:30( high IV time), sell both middile month Call and Put of strike price near the spot value. This gives credit approx 240-60 points. Now for protection from downside( upside is left for trder's choice to protect or not) within remaining days(5 days) of near month expiry, near month Put of strike price 200 points below ( from that is sold one) is bought, thats approx. cost 4-8 points.

Exacution
----------------

Square-off all trades, middle month and near month( if it needed) on near month expiry thursday, it will most probably will get nett premium earning of 20-35 points.

Hope its clear.

thanks dumdum, sorry i didnt see your post on tj thread..
u mentioned about covering downside risk by buying current month put below 200, any reasons u didnt cover ur risk on upside ? ant u buying calls 200 points above ur written straddle?
edit : ok now i saw, u mentioned about it in ur posts, its depend on person to person whether to cover upside or not
thank u

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

Originally Posted by alex

thanks dumdum, sorry i didnt see your post on tj thread.. u mentioned about covering downside risk by buying current month put below 200, any reasons u didnt cover ur risk on upside ? ant u buying calls 200 points above ur written straddle?

yes thats why i wrote, upside protection is left on traders choice. U see what we are afraid of-- a morning like jan-08 or oct-08 crash, if that happened than u can imagine nightmare, but in these days of bear phase probability of gap up opening by 200 points in NF is extreamly less, even that happens we can manage, but painc in downside can burst strategy easily.
One can equally buy upside protection by sepending extra 4-6 rs on near month OTM call, but that will reduce reward.

thanks dumdum for sharing the strategy here i am posting analysis by option oracle on above mention strategy

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

alex u inclued 2400PE of april. it should be of march.

Originally Posted by dumdum20008

alex u inclued 2400PE of april. it should be of march.

thanks edited now
its not showing the probability now ..and probability of upper and lower protection it shows, but i m not convinced by its figures according to me u have max protection of 281.10 ( which is also max debit - 281.10 ) points above & below 2600..

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

Originally Posted by alex

thanks edited now its not showing the probability now ..and probability of upper and lower protection it shows, but i m not convinced by its figures according to me u have max protection of 281.10 ( which is also max debit - 281.10 ) points above & below 2600..

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.