Exide India - symmetrical traingle

yes gain in Future is more than loss in Option. For example is exide is trading at 154.

So assume 150 or 140 PE premium is 2.00. Your investment for 1 lot of exide (2000 shares) will be 4k.....and for 2 lot it will be 8k.

Now lets say you bought 1 lot of future in Exide at 154. Now it started coming down.

Now your position in option would give you cushion. PE premium will start increasing from Rs 2.00.

 

i have tried doing that but more occasions i have seen that more often, the PE/CE nuetralizes to zero resulting in loss and with a loss in futures

i sincerely feel it is quite complicated to buy futures and CE/PE to compensate loss unless one is really clear about it. i would venture unless very clear.

 

Please describe one example of your trade and positions you taken.

I would suggest positions in FNO only when you are sure of trend

 

not any recently

but the point is, to make profit in futures one has to gain beyond the premium paid for two lots of options which has very less probability unless the trade moves in our favour in the anticipated direction

this has been my experience while trading the nifty

 

Out of the Money options are recommended where premium would be less.

Normally when there is strong bullish pattern than only will make an entry Future.

As per my experience I feel trading in Index FNO is risky as it will turn immediately for any sort of bad news or sentiments where we can expect wild swings because of more volume and Open interest build up on both CE and PE options.

All though same would apply to Stock FNO, but volume and Open Interest will not be much when compared to Index.

 

dear sujan

you have a point there let me also try on stock future with strong bullish trend and will give a feed back

but why two lots against one lot of future would this ratio generally hold good

 

You can also opt 1 lot. reason why I mentioned 2 lots because out of money options price moment would be very slow.

You need not to try with actual trade...try to observe in trading terminal by adding them. On top of that it is for short term only may be week time.

 

Good ques. I follow the same rule in future also but only in short side, if I am bullish then I take position in equity only.
In Future u can trade if u have good knowledge of trading or else u r going to loose maximum time only because of panic situation.

I am working on some patterns to trade in future with bare minimum stop loss with good target when I finished that I will tell u which strategy can be good for future in long side.

 

I exit @ 155 as the counter is going down to 148 again and again and not moving upside as I wanted.However I think it is in the 3rd Elliot wave and here 3rd Elliot wave is extended type.But I don't know why it is not working good.

 

Thank you Sanjay & Sujan for the valuable ideas.
Is there similar strategies in Options also? like buying CE & PE together to avoid losses?
Thanx,
Sudin

 

Make use of swing in exide today. enter at close to low and sell at high of today.

You should closely watch intraday chart.

 

Exide rocking .....trading at 159

 

Hi all
Where has SANJAY and Sujan gone these days.
No inputs from you sir on any stock this week.
regards
Veren

 

Enjoy profits in exide..........Bull is riding on bear.

 

It's tiresome week for markets

 

Sujan shall i enter into Exide today?

 

dont enter....enter tomorrow after correction.

 

Hi! all
I was very busy from last 10 days because of search operation in GMR & Bhasin, So no new updates was there from me, I'll try to update new threads in few days.

 

Very soon you will become millionaire for sure

 

Hey Sujan thanks but tell me the way also yaar.