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Wednesday 18 June 2014

Intraday Trades - 18.06.2014

Intraday: Nifty was range bound for initial Session. Many DPs just above, so was not comfortable with the Longs.
1) Took a BOF of PDH, PDC. was not expecting much from it. But price moved in Fluid. Got easy 70 pts in Puts.
Need to leave due to some work, No further trade. Although a BOF of PDL & then a BOF of BRN were 2 more good trades..

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4 comments:

  1. SMART Trader18 June 2014 at 21:26

    Deven
    How you are managing the option entries and exits?
    Do you look at option charts and feed your SL there?
    Are you using ATM or ITM contracts?
    If we want to trade big, I think options are a better option

    ST

    ReplyDelete
    Replies
    1. Deven Malhotra19 June 2014 at 16:39

      Hi ST,

      Truly speaking, I am not looking at ATM, ITM type. I used to think like it earlier. But now any Call/ Put which is >125 & < 175 is ok for me to trade. The reason is:-
      1) Options work only in Volatile mkts like nowadays. Options only move with NF for a sudden fall, many times i have got chopped in non volatile days.
      2) Premium on options is higher in early days (before 15th of each month), so i trade in them after 15th of every month. My feel is, these can be traded big only in 2nd half of the month.
      3) Options with more than 200 price is as good as NF contract so why trade with less volatility & volume.

      For entries, i use option charts in my trading terminal & enter on SL order on any pivot break (it usually breaks on 1 pt higher of earlier NF high, so its confirmed that NF pivot is broken).
      After entry, i only look at NF. My SL is always flat 10 pts, which i keep on trailing as Option gains looking at NF chart. If mkt doesn't make higher hi (in case of Longs), i exit.

      Thanks for visit & I hope, i was of some benefit.

      Thanks,
      Deven Malhotra

      Delete
  2. SMART Trader19 June 2014 at 18:42

    Deven

    Thanks for the detailed reply
    I was thinking about using options to trade the extremes

    ST

    ReplyDelete
    Replies
    1. Deven Malhotra19 June 2014 at 22:14

      Hi ST,

      Yeah, you are right & you can use them with Nifty at new highs..RR is mostly favorable inn options..

      Thanks,
      Deven Malhotra

      Delete

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