Intra-day Options Straddle Strategy on Nifty

Some more Rules

• Do not Enter and keep straddle Positions Open when Budget is Announced. Its a good idea to do straddle before and after budget. Don't keep positions open when budget is announced. Normally at 11 - 12 AM on the budget date
• Try to enter into positions when markets are calm and exit on spikes.
• Keep intra-day profit targets at 10% when Nifty trades within strike price range.
• When you exit, exit positions completely.

Dear Manikantan,
When I exit I exit both the long and put? How can u get the OTM call and put at the same price? eg:@50.
Thanks

Originally Posted by mar23

Dear Manikantan,
When I exit I exit both the long and put? How can u get the OTM call and put at the same price? eg:@50.
Thanks

You may not get to exit both at same price. But, if both put together, you make profits ... That's all you need ...

Try to enter both call and put at same price ... Exit when you get profits adding both put and call together ...

Give me an example of your entry and exit points if you need further clarity ...

Cheers!
Mani

This is anantha raman again regarding my option trading. assume today is 1st week of the month and nifty is trading at 5000. Purchasing 5200CE and 4800PE for example. Now let us assume that call is making profit at 3:00PM. and i exit the call. Shall i exit the put also at the same time? or keep the put for next day and how long you think ican hold this. now since i hv exited the call shall i buy another call immediatly after exited the call or shall I wait till i exit the put also.
are u in chennai? Thanks in advance.

Originally Posted by mar23

This is anantha raman again regarding my option trading. assume today is 1st week of the month and nifty is trading at 5000. Purchasing 5200CE and 4800PE for example. Now let us assume that call is making profit at 3:00PM. and i exit the call. Shall i exit the put also at the same time? or keep the put for next day and how long you think ican hold this. now since i hv exited the call shall i buy another call immediatly after exited the call or shall I wait till i exit the put also.
are u in chennai? Thanks in advance.

okay. Lets assume you bought 5200 CE at 80 Rs and 4800 Put at 80 Rs when Nifty is at 5000 ... Investment made is 160 in premium (160*50)

Then, lets assume Nifty moves to 5150 in next 3 days .... 5200 CE may be at 140 and 4800 Put may be at 40 .... You holding is now worth 180 in premium, both call and put put-together. You should exit both at the same time to book profits.

You should only exit one side, if you can recover you capital completely in one side. I am in Chennai and i am conducting a training session in Adyar on Dec 1st. I already have one confirmed attendee. You can also join if you are interested.

To find more details about the Training, Click Here.

can u explain Thomas DeMark Sequential System?

Hi,
This is Durgaa Prasad Avnii, i like this strategy very much and which one is the best to trade. in-the-money(ITM),at-the-money(ATM) or out-the-money(OTM) strike price? here same strike price is important or premium has to the same, which one is the important? and what is the difference between straddle & strangle strategy?.And is this work for writing strategy? sellcall+sellput.

Originally Posted by dpstavnii

Hi,
This is Durgaa Prasad Avnii, i like this strategy very much and which one is the best to trade. in-the-money(ITM),at-the-money(ATM) or out-the-money(OTM) strike price? here same strike price is important or premium has to the same, which one is the important? and what is the difference between straddle & strangle strategy?.And is this work for writing strategy? sellcall+sellput.

Go for equal premiums with close by contracts, rather than far away ones ... Straddle and Strangle are the same ...

May not work for writing really ... And writing will require higher margin meaning lower profit returns ... If you want to do writing, write close to expiry and staying far is safe ... Remember that technically speaking, unlimited losses are possible in writing ...