self talk

[9:02AM, 02/10/2015] jagmohanshan: trading is tactical.
[9:10AM, 02/10/2015] jagmohanshan: operators want traders to take a lot of trades, remain shaky once taken, come out of the trades often, react impulsively, remain emotionally surcharged, remain unsure, remain nervous, anxious, doubtful, shaky, fearful, vulnerable
[9:11AM, 02/10/2015] jagmohanshan: operators are the dogs amidst sheeps.that always works
[9:13AM, 02/10/2015] jagmohanshan: every trader has to one day cross that breath choking mind transforming waterfall of fear to enter the world of possibilities
[9:14AM, 02/10/2015] jagmohanshan: it's a great experience but demands sacrificing that fear
[9:17AM, 02/10/2015] jagmohanshan: every time I sit in front of a business channel I see the massive un intended cover-up, ignorance, parallel "pipli live" kind of tamasha where the real trader natthaa gets lost amidst the media brokers and the politician operators, being used all the time
[9:25AM, 02/10/2015] jagmohanshan: traders sit in front of the tv like devotees waiting for prasaad. what they get in return is anybody's guess. just hypnotism covering many unsuspected agendas and hollow noise
[9:28AM, 02/10/2015] jagmohanshan: professionals take business channel servings with a pinch of salt and support them in heart of hearts to benefit from them.professional traders are unwanted leech accomplices of operators.they see operator's game and get on board.
[9:28AM, 02/10/2015] jagmohanshan: self talk
[9:30AM, 02/10/2015] jagmohanshan: business channels are inadvertently bagpipes of the operator pied piper of hamelin
[9:36AM, 02/10/2015] jagmohanshan: interviews of masters and wizards and knowledge based programmes on channels welcome and useful.
[9:42AM, 02/10/2015] jagmohanshan: options are disaster proof and surprise friendly
[9:45AM, 02/10/2015] jagmohanshan: premium is the cost you pay to get the ticket to trade in an instrument which has the benefit of futures sans it's dangers
[9:46AM, 02/10/2015] jagmohanshan: options spread is a set of knives to choose for the situation
[9:48AM, 02/10/2015] jagmohanshan: put or call, which strike rate, less or more.......three questions to take max benefit from options
[9:52AM, 02/10/2015] jagmohanshan: options is an anaconda which you have to learn and practice to squeeze profits without getting squeezed ourselves
[10:08AM, 02/10/2015] Mudraa sheshadri: Jagmohan sir I was watching a video on options trading using high Delta value options,  so wanted to know any software or site gives option Delta values...
[10:28AM, 02/10/2015] jagmohanshan: if I ask a specific question it will help me sharing my thoughts
[10:28AM, 02/10/2015] jagmohanshan: u
[10:29AM, 02/10/2015] jagmohanshan: sheshadriji, don't know about any such software or site.....didn't need, so didn't search
[10:30AM, 02/10/2015] Mudraa Sandeep Chennai: JS JI - U know the direction or rather target - Will u always choose nearby strike or some where near to strike
[10:30AM, 02/10/2015] Mudraa Sandeep Chennai: I have always noticed whenever someone buy OTM options and if direction is right and it becomes ITM options - returns are pretty good when compared to opting for ATM options
[10:32AM, 02/10/2015] jagmohanshan: mind refuses to rest on a non trading Friday��
[10:32AM, 02/10/2015] Mudraa Sandeep Chennai: Is there any mechanism for lots to be bought - I know this is purely based on risk appetite - Any tips in this regard will be very helpful - How do u choose between options and futures - any relationship between 1 future lot and option lots
[10:33AM, 02/10/2015] jagmohanshan: hmmm
[10:34AM, 02/10/2015] jagmohanshan: i use
[10:36AM, 02/10/2015] Mudraa Sandeep Chennai: I am so happy that you are working on non trading and sharing your thoughts - Seriously I gained more from your knowledge - You have tone and I want to take it out from you as much as I can
[10:36AM, 02/10/2015] jagmohanshan: 1. out of money strike rate when i am less sure....eg before the trend i suspect has started or before the trend i suspect to be near the end (eg i shifted from 7800ce to 8100ce yesterday)
[10:37AM, 02/10/2015] jagmohanshan: 1. out of money strike rate when i am less sure....eg before the trend i suspect to start has started or before the trend i suspect to be near the end has ended (eg i shifted from 7800ce to 8100ce yesterday)
[10:37AM, 02/10/2015] jagmohanshan: reworded for clarity
[10:39AM, 02/10/2015] jagmohanshan: 2. when the trend has finally been confirmed to have started, my out of money option comes at the money and then in the money. i let these profitable islands drift deeper into the melting-ice rising ocean of profit.
[10:41AM, 02/10/2015] jagmohanshan: 3. as the trend has blossomed, the expansion happened, the in-the-money option has, by then, gone deep in the money. i,then, keep shifting that deep-in-the-money option to at-the-money option thus taking money off the table but still staying in the trend and with good enough beta or delta
[10:45AM, 02/10/2015] jagmohanshan: e.g. i started with 7800ce when spot was 7733, and stayed in it till spot reached 7999 (deep in the money). (in between i added at 7777 also, but that's a different story). this is the spot when i shifted 277 point 7800ce with 103point (if i recall right, don't have the diary near me presently) 8100ce, thus taking 174 points off the table and hence off the risk
[10:45AM, 02/10/2015] jagmohanshan: as i said...
[10:46AM, 02/10/2015] jagmohanshan: put or call, which strike rate, less or more.......three questions to take max benefit from options
[10:46AM, 02/10/2015] jagmohanshan: the two have been discussed, the lot size is left
[10:46AM, 02/10/2015] jagmohanshan: i keep my trading corpus divided in 5 parts
[10:47AM, 02/10/2015] jagmohanshan: rarely need to or go beyond 1st.....
[10:47AM, 02/10/2015] jagmohanshan: use 20-33% of that 1 part when i am less sure or when the trend has not started or ended
[10:48AM, 02/10/2015] jagmohanshan: strike price and lot size constitute the throttle in the trading ferrari
[10:50AM, 02/10/2015] jagmohanshan: generally 3 in the money option lots are equivalent to 2 futures lots IMO
[10:50AM, 02/10/2015] jagmohanshan: and 4:1 for out of money option call
[10:50AM, 02/10/2015] jagmohanshan: that makes it 66% and 25% respectively
[10:51AM, 02/10/2015] jagmohanshan: deeper in the money options gradually approach 1:1
[10:54AM, 02/10/2015] Mudraa Shailendra Sawant: �� insights ����
[10:55AM, 02/10/2015] jagmohanshan: for the understanding of those who don't know
[10:56AM, 02/10/2015] jagmohanshan: assuming spot=7950, 7900 ce ("europian call") will be considered "at-the-money" (well almost)....though 7950ce is also availbale these days'
[10:57AM, 02/10/2015] jagmohanshan: 7800 or 7700ce will be called "in-the-money" and 7700 or 7600ce will be called "deep-in the money"
[10:57AM, 02/10/2015] jagmohanshan: vice versa for puts
[10:58AM, 02/10/2015] jagmohanshan: i see no good compelling reason for holding very-deep-in-the money options except the intention of returning the profit to the poor operator
[10:58AM, 02/10/2015] jagmohanshan: in case of a sudden market move
[11:00AM, 02/10/2015] jagmohanshan: lemme share the obvious scenario when i say "options are disaster proof and surprise friendly"
[11:01AM, 02/10/2015] jagmohanshan: assume spot=7950......assume u r holding 7900ce at 100/-
[11:01AM, 02/10/2015] jagmohanshan: assume market crashes without warning to 7450.....i.e. 500 points
[11:02AM, 02/10/2015] jagmohanshan: had u been holding futures longs, u would have fallen nearly 500 points, but in case of "at-the-money" 7900ce ur fall be restricted and arrested to mere 100 points or lesser
[11:03AM, 02/10/2015] jagmohanshan: scenario 2: u were holding 7700ce at 310/-
[11:04AM, 02/10/2015] jagmohanshan: u still are better off than holding futures longs, as now u lose 300 points instead of 500 in futures longs or 100 in 7900ce
[11:05AM, 02/10/2015] jagmohanshan: the beta however is better for 7700ce than 7800ce than 7900ce if the market was to go up from 7950 to say 8150
[11:08AM, 02/10/2015] Mudraa Sandeep Chennai: Sir ji - Does these trends have boundaries and ultimately these need to be supported by options data ? Am I right in this regard?
[11:08AM, 02/10/2015] Mudraa Sandeep Chennai: Are futures having credible weights in this trend game?
[11:09AM, 02/10/2015] Mudraa Sandeep Chennai: Monthly trend target is slowly achieved on day to day basis - Am I right in this regard?
[11:10AM, 02/10/2015] jagmohanshan: options data don't reflect accurately the boundaries which operators have in mind, IMO
[11:11AM, 02/10/2015] Mudraa Sandeep Chennai: Yes I do acknowledge but when u start seeing on historical basis before the start of trend and once the trend is confirmed - they start building it. You cant identify on Day 1 but they would start accumulating to support the trend
[11:11AM, 02/10/2015] jagmohanshan: i have seen that operators have targets much before the trend starts. inevitably they move towards that
[11:12AM, 02/10/2015] jagmohanshan: the morning and evening dew shouldn't be taken as the start of rainy season
[11:13AM, 02/10/2015] jagmohanshan: @sandeep yes
[11:13AM, 02/10/2015] Mudraa Sandeep Chennai: Yes thats exactly before the start of trend when we go for OTM options - over the period once we know how they do it historically and see thats happening here , then there is more confirmation of trend getting stronger
[11:13AM, 02/10/2015] Mudraa Shailendra Sawant: Jsji some views on time value & decay any specific  slots in series conducive non conducieve
[11:14AM, 02/10/2015] Mudraa Sandeep Chennai: But do Futures have any say in relating to trends?
[11:19AM, 02/10/2015] jagmohanshan: time decay of premium depends on a few things.....
[11:21AM, 02/10/2015] jagmohanshan: eg, which side the premium is more......how much premium is left to be eaten and how many days left to expiry
[11:21AM, 02/10/2015] jagmohanshan: with practice, in few series, u see the pattern of their game plan
[11:22AM, 02/10/2015] jagmohanshan: if premium is high on both sides and days are many, god bless the retail trader.....it is going to be a hell of a roller coaster volatile ride
[11:23AM, 02/10/2015] jagmohanshan: if premium is high on both sides and days are less, i would doubt large movement though tight range
[11:24AM, 02/10/2015] jagmohanshan: if premium high only on one side and days sufficient, i would slivate on that side
[11:24AM, 02/10/2015] jagmohanshan: if premium high only on one side and days less, i would be surprised if i am not already on that side trade
[11:28AM, 02/10/2015] jagmohanshan: if premium less on both side and days many, except earthquakes
[11:28AM, 02/10/2015] jagmohanshan: if premium less on both sides and days few, i wish u have tightened the seatbelts for crash landing.
[11:29AM, 02/10/2015] jagmohanshan: more the premium, less the difference of premium on both sides and lesser the days = boring rangings
[11:30AM, 02/10/2015] jagmohanshan: no need to remember all this....even i don't remember......just like u don't remember how to walk. it becomes ur second nature with practice and observation.