Well.......try this.....much better than playing with long options as a wasting assets option lose it's premium fast.
Long future & Short call
Buy future and sell a ITM call. By selling the call, the seller receive premium. Now a stop upto the amount of premium received can be maintained at future.
In this trade ........we don't seek profit on option......., If future rise ......we earn on future & lose on option....(an ITM call will rise @ .5-.6 whearas future will rise @ 1), if future remain same......we earn on option as with the time.....the option will lose it's premium. The RR ratio comes on this strategy ...approx.....1/2 : 1.
Short Future Long Minifuture
Short one lot of Nifty Future...buy one lot of mini....this will work in bear market......maintain the stop at full lot........
RR ratio.......2 : 3
4 comments:
thank u cactus...for such good strategies...
yeah saw ur first post...sorry man,cant figure it out wat u r trying to explain..but i can see inverse head and shoulder pattern forming...
by the way,who is RK,who has given tgt of 3617...which u have mentioned?
mention not dear. A simple strategy that works.
The problem is I don't understand patterns....H/S....., Inverted H/S......, Big W & M (double topp/D. Bottom)....It is too hard to recognize on 5 minutes charts....
my bro..., check here....
http://www.traderji.com/127764-post1.html
oops.......forget.......
draw a horizental line...assuming the begning at left...mark the top over it in the center, now draw an acceding line from left to upto top. now....if the down fall appear & we draw an decending line......where it will touch the horizental line.........?
the verticle lines appring in the tringle are supports.....
oops........read other horizental lines are supports.......instead of verticle lines.
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