Do strangle in Same Strike Price.
i.e. Strike Price 5900 March
Buy Call at 58 and Put at 86 (Make similar amount of investment say close to 25000) 450*58 and 300*86
Now say the market goes 20 points down then
Sell Call at 49.5 and Put at 110
Now here,
Loss made in Call is -3870
Profit made in Put is 7800
Your overall profit is 3930.
Do Paper Trading atleast 10 days. Buy only when the market starts say around 9.15 am - 9.20 am
traderji
http://zerodha.com/z-connect/queries/stock-and-fo-queries/basics-on-options-shortingwriting
Follow this Strategy: Follow the open low factor
Note: Please Leave the trading place after getting targeted daily profit.
OPEN - LOW FACTOR.: If Opening Price and Low Price of any Stock Or Indices has been kept with same price including that of decimal point
soon after the market opens in any particular day after the 20 minutes of Opening of trades can be recognized as OPEN-LOW FACTOR for the day. When this factor has been framed after the market opens in any specific Stock Or in any of the Indices, The price will move upward direction only. So, One has to go long in that specific stock or Index preferably nearer to the low price and book profit as and when the target has been met. One can recognize the targeted price based on the volatility factor of the specific stock or the index and so on. One can keep the stop loss as the low price of the stock or the indices for going long in any stock / indices. Suppose if the low price has been broken out one has to cut their long position immediately after the violation of the price and should take short position soon after the low price get violated. Here, the trader can keep the violated low price as upward stop loss. Here, Ones the low factor get violated the price of the stock or index will drastically come down by applying maximum volatility factor over the downside front.
OPEN-HIGH FACTOR.: If Opening price and the High Price of any Stock or Indices has been kept with a same price including that of the decimal point soon after the market opens in any particular day after the 20 minutes of opening of trades can be recognized as OPEN-HIGH FACTOR for the day. The moment the factor has been framed the stock price / the index will go down drastically. So, One Can go Short selling of the specific stock / indices by keeping the high price as stop loss. Here also One can apply the volatility factor for the downside target for the specific stock / indices. The individual Volatility factor has been available both in NSE and BSE Websites. Here the percentage of volatility can be applied downward either with the previous day's closing price or with the High price of that specific day for arriving the downward target of the stock / indices. At same time, When a High price is getting violated, one has to cut their short position immediately and should take long position by keeping the violated high price as stop loss. Whenever the violation is happening stock price / Indices will end up with double end volatility.
Volatility factor of the specific stock has been given on the bottom of the web page. The volatility has been highlighted as maximum , minimum, and average in terms of percentages. So, If someone wants to book minimum profit at very frequent intervals one has to choose the minimum percentage and it should be applied either with the previous days closing price of the stock or with the " Open - Low " or with the "Open High Factor " prices.
I hope now traders might have followed the above strategy, how the targeted price can be met in and how a trader can book profit in a very smart way!
If you are a day trader, your position size is likely larger due to the fact you are looking for a smaller move with your short timeframe. Keeping a tight stop is extremely important when trading larger size, as a day trading strategy gives stocks multiple opportunities to work. For day trading, the strategy is rather simple:
Always keep your profit objective at least 3 times greater than what you are willing to risk.
Allow no more than a 1% move against you from your entry point. Ideally, you are in the trade beyond the trend line and out of the trade below it. You can always get back into the trade if the stock returns to the buy point.
If a stock gaps beyond a technical trigger price, the original trade plan is negated for a day trade so a new plan should be made.
If the futures make an intermediate lower high intraday (or higher low when trading the short side), exit half of your position. This implies a weakening market and can make it tougher for open positions to continue working.
If your stock hits a new low for the day (long trades) or new high for the day if you are short, exit the position. A day trade is intended for initial moves, so there is no purpose in widening stops to accommodate a stock moving in the wrong direction. Get out if the stock breaks a low (or high if short) as you can reenter the trade if it triggers again.
Once momentum fades and buyers are thinning out, take your profit. This can be done by carefully monitoring the intraday chart and the time & sales
Wishing all the traders a very happy trading days ahead by interpreting this method.
NOTE.: The above factor will work only in the normal course of trading days only. At the same time, It never works whenever a positive or negative news item or any rumor will appear through any media would change the direction of the individual stock / indices price movement in an opposite direction.
If Open & Low Price is Equal than go for the Buy with Stop Loss Below the Low Price.
If Open & High Price is Equal than go for the sell with stop loss Above the high price.
i.e. Strike Price 5900 March
Buy Call at 58 and Put at 86 (Make similar amount of investment say close to 25000) 450*58 and 300*86
Now say the market goes 20 points down then
Sell Call at 49.5 and Put at 110
Now here,
Loss made in Call is -3870
Profit made in Put is 7800
Your overall profit is 3930.
Do Paper Trading atleast 10 days. Buy only when the market starts say around 9.15 am - 9.20 am
enter the trade at 9.15-9.20 and leave all for the market to move upward or downward 20 points or more and then sell.
trading in options is the attractive way to make more money with less investment as options have limited risk but unlimited profit potential. Choosing the right strike price option is very important. Many people lose their money because of not choosing the right strike price option. People take positions in deep out the money options just because they are cheap. Deep out the money options can work good in positional trades when major up or down moves are expected. But for day trading selection of right strike price option is very important.
If we can estimate the range of any stock for the next trading day we can easily select the right strike price option. The volatility percent of any stock or index price on particular trading day can be used to estimate the range for next trading day. In this post I will take the example of Nifty index, this can be applied to any stock also.
Step 1. Go to NseIndia.com website and type nifty or any stock name and click on get quote
Step 2. Click on the other information and note down the daily volatility. In today’s case its 1% with nifty at 5895 =settlement price,daily volatility 1 means 1%
Step 3. On multiplying volatility % by the price i.e 5895 x 1% = 58 . This 58 is the number by which nifty can go up or down. The lower range for nifty will be 5895-58 = 5837 and upper range will be 5895+58 = 5953. So on the next trading day the nifty trading range will be 5837- 5953 .
The right stock option has a volume that is 2 or 3 times of its open interest,positive price change,volume over 10 laks.i wish somebody makes a screener with these conditions
The right strike price for an option is that having time value less than 1 percent of underlying stock price.or if the rise in stock price by 1 pct must make buy price cross above break even price.
if you need more than 1% rise then chances are you wont reach breakeven price and you wont make profit.rule keep time value less than 1% of underltying stock price and if you cant make profit get out with small loss. nifty is 8200,then 1% is 82.
your call or put option must have time value less than 82.it means if price moves by 82 points, you are in profit above your break even price.chances are you hit profit 4 out of 10 and get out if things are not working out. how to find tmv?
option premium - intrinsic value =time value
if you need more than 1% rise then chances are you wont reach breakeven price and you wont make profit.rule keep time value less than 1% of underltying stock price and if you cant make profit get out with small loss. nifty is 8200,then 1% is 82.
your call or put option must have time value less than 82.it means if price moves by 82 points, you are in profit above your break even price.chances are you hit profit 4 out of 10 and get out if things are not working out. how to find tmv?
option premium - intrinsic value =time value
by abhishek
Time value
Time value is the portion of premium which is over and above the intrinsic value of an option, i.e., Time Value = Premium – Intrinsic value
Say if Nifty is at 6240,
- Nifty 6200 call is at Rs 100, This premium of Rs 100 = Rs 40 (Intrinsic value)+ Rs 60 (Time value)
- Nifty 6300 call is at Rs 40, This premium of Rs 40 = Rs 0 (Intrinsic value) + Rs 40 (Time Value)
- Nifty 6200 put is at Rs 60, This premium of Rs 60 = Rs 0 (Intrinsic value) + Rs 60 (Time Value)
- Nifty 6300 put is at Rs 140, This premium of Rs 140 = Rs 60 (Intrinsic value) + Rs 80 (Time Value)
Therefore options of strike price 5800-6000 either put or call will be good for day trade .
INVESOTORJI ABHISHEK SITE
Follow this Strategy: Follow the open low factor
Note: Please Leave the trading place after getting targeted daily profit.
OPEN - LOW FACTOR.: If Opening Price and Low Price of any Stock Or Indices has been kept with same price including that of decimal point
soon after the market opens in any particular day after the 20 minutes of Opening of trades can be recognized as OPEN-LOW FACTOR for the day. When this factor has been framed after the market opens in any specific Stock Or in any of the Indices, The price will move upward direction only. So, One has to go long in that specific stock or Index preferably nearer to the low price and book profit as and when the target has been met. One can recognize the targeted price based on the volatility factor of the specific stock or the index and so on. One can keep the stop loss as the low price of the stock or the indices for going long in any stock / indices. Suppose if the low price has been broken out one has to cut their long position immediately after the violation of the price and should take short position soon after the low price get violated. Here, the trader can keep the violated low price as upward stop loss. Here, Ones the low factor get violated the price of the stock or index will drastically come down by applying maximum volatility factor over the downside front.
OPEN-HIGH FACTOR.: If Opening price and the High Price of any Stock or Indices has been kept with a same price including that of the decimal point soon after the market opens in any particular day after the 20 minutes of opening of trades can be recognized as OPEN-HIGH FACTOR for the day. The moment the factor has been framed the stock price / the index will go down drastically. So, One Can go Short selling of the specific stock / indices by keeping the high price as stop loss. Here also One can apply the volatility factor for the downside target for the specific stock / indices. The individual Volatility factor has been available both in NSE and BSE Websites. Here the percentage of volatility can be applied downward either with the previous day's closing price or with the High price of that specific day for arriving the downward target of the stock / indices. At same time, When a High price is getting violated, one has to cut their short position immediately and should take long position by keeping the violated high price as stop loss. Whenever the violation is happening stock price / Indices will end up with double end volatility.
Volatility factor of the specific stock has been given on the bottom of the web page. The volatility has been highlighted as maximum , minimum, and average in terms of percentages. So, If someone wants to book minimum profit at very frequent intervals one has to choose the minimum percentage and it should be applied either with the previous days closing price of the stock or with the " Open - Low " or with the "Open High Factor " prices.
I hope now traders might have followed the above strategy, how the targeted price can be met in and how a trader can book profit in a very smart way!
If you are a day trader, your position size is likely larger due to the fact you are looking for a smaller move with your short timeframe. Keeping a tight stop is extremely important when trading larger size, as a day trading strategy gives stocks multiple opportunities to work. For day trading, the strategy is rather simple:
Always keep your profit objective at least 3 times greater than what you are willing to risk.
Allow no more than a 1% move against you from your entry point. Ideally, you are in the trade beyond the trend line and out of the trade below it. You can always get back into the trade if the stock returns to the buy point.
If a stock gaps beyond a technical trigger price, the original trade plan is negated for a day trade so a new plan should be made.
If the futures make an intermediate lower high intraday (or higher low when trading the short side), exit half of your position. This implies a weakening market and can make it tougher for open positions to continue working.
If your stock hits a new low for the day (long trades) or new high for the day if you are short, exit the position. A day trade is intended for initial moves, so there is no purpose in widening stops to accommodate a stock moving in the wrong direction. Get out if the stock breaks a low (or high if short) as you can reenter the trade if it triggers again.
Once momentum fades and buyers are thinning out, take your profit. This can be done by carefully monitoring the intraday chart and the time & sales
Wishing all the traders a very happy trading days ahead by interpreting this method.
NOTE.: The above factor will work only in the normal course of trading days only. At the same time, It never works whenever a positive or negative news item or any rumor will appear through any media would change the direction of the individual stock / indices price movement in an opposite direction.
If Open & Low Price is Equal than go for the Buy with Stop Loss Below the Low Price.
If Open & High Price is Equal than go for the sell with stop loss Above the high price.
http://www.tradersir.com/Simple-method-to-trade-in-Nifty-option-trading.html
https://www.mta.org/wp-content/uploads/2015/11/0912-verdouw-1.pdf
http://www.pivottrading.co.in/pages/gannSquareof9.php
AFTER 1HOUR ltp add to gann
http://www.tradersir.com/Simple-method-to-trade-in-Nifty-option-trading.html
http://www.traderscockpit.com/?pageView=gann-square-of-9-calculator
http://www.traderji.com/options/86661-15-guaranteed-returns-buy-both-call-put-options-strategy.html
http://www.stockmaniacs.net/freebies/free-tools/gann-square-of-9-calculator
http://content.icicidirect.com/newsitecontent/institute/equities/basics_on_stock_market_13_margin_made_ezee.htm
http://www.shubhlaxmicommodity.com/p/gann-calculator.html
http://investorji.in/tag/intraday/
http://investorji.in/how-to-do-day-trading-with-gann-technique.html
http://investorji.in/how-to-select-the-best-strike-price-option-for-intraday.html
http://investorji.in/how-to-calculate-support-and-resistance.html
http://tradingtuitions.com/afl-of-the-week-intraday-open-high-low-trading-system/
http://tradingtuitions.com/a-profitable-intraday-trading-system-excel-sheet/
http://tradingtuitions.com/a-profitable-intraday-trading-system-excel-sheet/
http://www.mudraa.com/trading/77624/0/intr-day-traders-use-this-trick-for-right-direction.html
http://www.traderji.com/advanced-trading-strategies/92897-intraday-setup-open-high-low-breakout-pattern-no-charts-just-excel.html
http://www.traderji.com/advanced-trading-strategies/92897-intraday-setup-open-high-low-breakout-pattern-no-charts-just-excel.html
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