Comments on Trading Steps: Using Options in Trend Following Systems

Superb blog post, I have book marked this internet...

2011-03-19T15:35:29.235+05:30

Superb blog post, I have book marked this internet site so ideally I’ll see much more on

this subject in the foreseeable future!

"options trading

Dear Sudarshan Sir, I am a regular reader of your...

2009-09-26T11:15:07.446+05:30

Dear Sudarshan Sir,

I am a regular reader of your blog since only a few days. Today I observed your comments regarding your experience of using Options in a trend following system. You are rightly pointed that when we buy CALL/PUT we are paying more premium since the trend is up/down. My point is that why we should SELL IN THE MOENY PUT instead of BUYING CALL. In a strong trend PUT will lose money faster than CALL. But I see that even in case of strong trend profits will be limited to the premium received whereas losses can be unlimited if trend goes in opposite direction.

Seeking your comments

AMIT KUMAR BAID

gud morning sir iam presently following trends bas...

2009-09-26T10:25:14.507+05:30

gud morning sir
iam presently following trends based on DP and using a calculator (downloaded from the net) to find DPs.what is the best calculting method to find the DP? previously i was blankly following some tips and all to do trading. i started following trend following strategy after becoming a follower in your blog. thanks for the guidance.

HELLO SIR, I M ONE OF REGULAR READERS OF UR BLOG &...

2009-09-25T23:43:47.899+05:30

HELLO SIR, I M ONE OF REGULAR READERS OF UR BLOG & UR FAN TOO.I HAVE ONE QUERY-I TRADE ON MOVING AVERAGE CROSSOVERS. ALTHOUGH MY ENTRY PT BECOMES GUD (in trending mkt),BUT MY EXIT PT (reverse cross) GIVES ME VERY PETTY PROFITS. IF I BOOK PROFITS AT SUM LEVEL(discretionary) THEN I GET OUT OF TRADE OR MISS THE MAIN TREND.PL SUGGEST ME SUM EXIT STRATEGY/INDICATOR TO LOCK PROFITS AT SUM HIGHER LEVEL & THAT INDICATOR SHUD MAKE ME RE-ENTER TO BE WITH THE MAIN TREND(first entry pt being crossvers only)...HOPE U WILL GIVE UR VALUABLE COMMENTS FOR THE BENEFIT OF ALL..

REGARDS,
VIKAS SHARMA

Sir, I think short term tone of mkt. is down we wi...

2009-09-25T21:42:34.033+05:30

Sir,
I think short term tone of mkt. is down we will see a correction up to atleast 4850. Can we go short with stop @ 5040 spot nifty? Pl. comment. I think it will be a low risk entry
Nitin Damle

Sir, In todays blog you are of the view that a sma...

2009-09-25T19:24:40.053+05:30

Sir,
In todays blog you are of the view that a small correction may have started, but on tv you were reluctant to go short at the end of the day. I was short on the markets but i hurriedly covered after your comments.
Thanks
Shazia

hello sudarshan sir i have query regarding breakou...

2009-09-25T10:28:35.428+05:30

hello sudarshan sir i have query regarding breakouts,sir is there a way to filter breakouts,what stops can one generally use.recently in the markets many stocks brkout daily so its been difficult to pick up stocks which to choose n which not.also the moves when breakout happen are big therefore the stops have to be deep.can u throw some light on this matter.Thank you

GOOD EVENING SIR -- I ve been regular reader of ur...

2009-09-25T00:09:04.502+05:30

GOOD EVENING SIR -- I ve been regular reader of ur blog and subscriber of trand mechanic too --your comments about market are realy inspiring and helping me to improve my trading strategies - they r realy fantastic --regarding use of options -- what i ve realised is tha smartness lies in selling the options --e.g covered call write or ratio writing or selling strangles // straddles--as time factor is in your favoyur --e.g say sell nifty 1 lot @ 5000 --and sell out of money puts -say 4800PE 2 lots @ 80 -- u willl get some hedge if market goes against u -- if market rangebound --still minor profits -- if market goes in ur favour -- u can close the position--both legs - in handsome profits -- pls give ur valuable opinion -- whether such strategy should be employed all the time ---eg -- BULLISH VIEW -- BUY NIFTY 5000-- 100 QTY -- SELL 5200 CE 200 QTY @ 80 // BEARISH VIEW -- SELL NF 100 QTY @5000--and SELL4800 PE -- 200 QTY @ 80--awaiting SUDARSHANji s guidance -- with regards -- dr vaibhav