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Wednesday, 30 July 2014

Intraday Trades - 30.07.2014

Intraday: Traded Options today as they were available without premium. Mkt traded between IRH & PDL for a long time & i didn't fiddle in the middle. Waited on the sidelines.
1) Short on BPB of PDL. I expected it to go atleast to BRN. Stopped out.
2) Reversed to Long as BOF in calls. I was with 7800 calls bought at 37. Messed up my trailing SL orders & was out at 72. It went till 93. Although PDH was far away but didn't find any reliable signal to re enter.
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6 comments:

  1. SMART Trader30 July 2014 at 19:02

    Deven

    Some how i am not getting the knack of this option thing
    In this particular trade why 7800 call and not 7700 call?
    How they behave. throw some light.

    ST

    ReplyDelete
  2. Unknown30 July 2014 at 20:29

    Hi Deven and ST
    I prefer ATM options at all times as they do not lose value as quickly as OTM in case the trade does not work out.
    also closer to expiry they are the best bet because of the above reason.
    OTM would give you greater percentage return and ITM the least.
    ITM will detoriate less among the three.
    Thus I use ATM.
    Do post your observations too,readers!!

    TBP

    ReplyDelete
  3. Deven Malhotra30 July 2014 at 21:29

    Hi ST & TBP,

    I took the 7700 call (mistyped 7800), because at that time, NF was trading at 7730 & call was at 35, so was having a premium of just 5 rs. Its low rate ( 50 * 37 = 1850). So instead of 1 lot of NF, i got 6 lots of call which were moving at the speed of NF atleast this week.

    We can only trade these options, when they are very low at premium and amount, else its lot price will be similar to NF with time decay. So I only trade them after 16th of every month, when their premium goes down. TBP is right, its generally ATM, which is near to 100 rs..

    Thanks,
    Deven Malhotra

    ReplyDelete
    Replies
    1. SMART Trader30 July 2014 at 22:13

      Thanks

      ST

      Delete
    2. Anonymous31 July 2014 at 01:19

      Deven,
      What charts do you use to trade options?
      Thx,
      DM

      Delete
    3. Deven Malhotra31 July 2014 at 08:35

      Hi DM,,
      I use NF charts only - 5 min & 15 min (just keep an eye). Too much charts cause confusion & distraction to me. My entries are only with 5 min NF chart.

      Thanks,
      Deven Malhotra

      Delete

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