Now that you know where you have lagged, you can start again and this time with proper knowledge and strategy. You will surely earn good money.
Rollover futures to next month. No doubt you are booking loss this month. Ultimately when liver comes back to your buy price, you would be in green.
If I feel its week in short term I would play a little safer.
Option 1. Sell 2300put (least risky)
Option 2. Sell 2400 put.
Option 3. Buy one lot futures at 2425 and sell two lots
Of 2550 call.
I would prefer third option in the current case cos there are 9 trading days left for this expiry and I donât see it crossing 2550.
Now that you have spoke about HUL, I can tell what exactly I have done over here in the past 1 year.
I entered HUL futures in May 2020 at 2223 and simultaneously sold 2300 call. HUL went down straight away to 1900 because of a block deal which was supposed at happen between 1950 and 1900.
So next month I sold 2200 call and kept rolling over to next month. When spot of HUL came closer I shifted my call to 2300. Currently also I have position in HUL.
Before previous month I was having futures at 2350 and short call of 2500. Two days before expiry it crossed 2500. So what I did was sold 2500 put of June series for 56 points. Right now its trading at 90 and is in loss. So if in another 7 days it doesnât cross 2500, I will sell 2500 put of next month.
I hope I was able to summarise in the way you could understand. I tried to take a screenshot of my HUL trades of last 15 months. Wasnât able to capture in one shot.
Few questions which you may have.
So how much did I make by doing this for almost 15 months? 1.9lakhs.
Margin required? Roughly 1.2lakhs.
Whats the max loss I had in positions? Around 90k when it went to 1900.
Did I panic at any stage? No.
This has worked for me. I do not know how right I am because I have heard many say it doesnât work all the time. Please know what you are getting into before you take a similar trade.
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@Mr_M dont trade when you are disturbed
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This is one of the meaningless post iâve ever seen.
Just because u lost money doesnât mean everyone will loose. Its because you do not know what you are doing.
With such a mind set ,you cannot become profitable. Mindset is everything.
Emotions are driving you.
All the best!
Very well said
Better Donât do intraday trading.
Or
Do day trading once in a while. Move out immediately after you either make a profit or loss.
The stress to profit ratio is very high in intraday.
In long term rarely someone makes big profit with good health
Success ratio in intraday is 10% only
Plus the time to be devoted is 100% screen time till trade is squared off.
Better trade in cnc.
Best would be long term investment.
If you lack knowledge invest via established mutual funds.
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Is it possible to sell deep ITM 2000 points away from future spot price,
for example, bank nifty at 37000, can we sell 35000 CE ?? or sell 39000 PE
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Futures and options are leveraged instruments, so using leverage does not increase your chances of winning. Leverage means just that you will get wiped out faster!
You need to have good ideas in trading, know about the Company its business the overall macroeconomic scenario and then take trades⌠And even then you will be wrong! So manage your risk
Trading is not easy, no such thing as easy money. All the online gurus who claim big numbers are charalatan trading educators not professional traders. Donât go to them either.
Start with Zerodha varsity understand basics and open a demo / paper trading account first.
Wish you all the best in your trading endeavours. Learn from your losses and dont get emotional about it
yes. I know I need just for sake of information, can we sell can we sell 35000 CE when bank nifty at 37000,
Yes u can. Profit is when bank nifty goes below 37000 and loss is if it raises above 37000.
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for example: 35000 CE LTP, is 2800, and it goes down to 2600, and will there be any profit of 200 points
Yes, you can- but the taxes are higher and thereâs lesser theta advantage and most importantly the disadvantage of slippage.
If however you are getting a premium way higher than 2000 and you are confident that BN will not rise, its theoretically profitable.
HNI very often short ITM for its personality which resembles futures.
excellent to know this,
I am thinking of positional trade, not intraday, bank nifty has to move somewhere either upside or downside