Rhino

Rajkumar

New Member
I am located in India and trade NSE INDIA stocks and index. The index is 'nifty50' on which I tried Rhino. Nifty50 is a weighted index of 50 liquid stocks. Currently its around 11100. Hence I am not sure of the adjustment and exit levels. (We have strikes available at intervals of 50, but 100 interval srikes are more liquid.)
1. Since nifty50 quote is higher than Rut, I am not able to decide on the delta levels for adjustment.
2. Could I use 2 instead of the 5 lots you have advised for Rut and how do I reach a proper delta level. When I traded with one lot each, the delta was below +2 for 10 days during which time nifty50 saw a downward move of 300 points. However delta never went above +2. Delta levels for adjustment and no. of lots: is the relationship linear?
3. What will be the correct BWB steps for nifty50 when compared to 40/50 steps in BWB puts. I had taken 200/300 points between long and sort puts.
4. You have advised downside adjustment when the daily bar closes below the expiration line. This for my trial would have given me 18% downside range. Could you confirm whether my understanding is correct.
Best regards
Raj
 

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admin

Administrator
Staff member
Hi Raj

What I would suggest is that you first backtest the Rhino on RUT, using either OptionNet Explorer or OptionVue.
That will give you a good feel for the trade, after you've run the backtest over multiple years.

Once that's done, you would need to convert the delta adjustment levels over to your Nifty50 index.
If you do find some equivalent levels, feel free to share what you find here, so that others may be able to contribute as well.
 
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