Dear Jace48,
Hedging is done to prevent a trader from a loss which might incur when trader is not sure of the direction and has taken a position. One question, what prompted you to go long @4620, any self technical analysis, news or just emotional move? You need to understand and answer...
Dear Optiontrader,
Yes, I remember the option strategy that I posted earlier, its safe and the successful strategy to work with as I tried and tested by me. I still recommend the same to others.
It all depends on trader's mindset. If you think you can withstand in more volatle market...
Dear Optiontrader,
I thought you would hold Nifty short. Short Nifty again tomorrow and buy Nifty 4700/4600 call before tomorrow's closing i.e. around 3:15 if you see Nifty trading with more than loss of 20 points.
Regards
Dear Optiontrader,
Currently market is bearish and it seems in oversold zone as well, so buying 4700 call is a good option. But keeping the bearishness in mind, would suggest hedge your positions with a put at 5100, 5200 or short Nifty.
Regards
Dear Debdeeps,
Yes, you can, booking profit or exit is always your call. Please note, I suggested a Call buy at 4700,4800 and puts at 5100, 5200. it seems currently Nifty reaching at 5200 within 2days is a remote possibility.
Regards
Dear Subbssh,
RPL is currently in bearish mode. Oil is the most bitten up sector w/o any respite so far. I think you did the opposite, you should have bought 170 Call and written 190 calls instead.
Regards
Dear Atul,
As told earlier one should buy puts at resistence R1 and calls at Support S1. Unless one is very sure. You have bought put at S1. And Nifty seems range bound between 4900 - 5200. So, would suggest exit 4800 Put and buy 5200 put instead. Remember to square off your postions by 23rd...
Dear Raj_2k,
1st one is okay. regarding 2nd one, But write 2800 call instead of 2600 Call.And buy 2575 future. At expriry if RIL remains below 2800 or is around that for a while then you will earn profit in writting call at 2800.
Regards
Dear Ranj_2k,
It seems icicidirect has assumed some support level for RIL around 2450 with 7 days to expiry or so and have done the calc. This strategy looks okay and I think one can hold it till expiry.
Regards
Dear Ram,
AW10 has well said. I would like to add to what he has said that you use f & o as a hedging tool against your cash positions. Only professional traders should go for nacked f & o tradings. So, master the art of trading first before you start naked F & O trading. F & O needs strict...
Dear Ram,
According to data that you have posted it seems buying call @5000 seems okay! But IV and HIV data is not the only which could decide the course of market. Currently Nifty seems slightly bearish then bullish. So, would reco. buying 5100 Put and 4800 call rather.
Regards
Dear Ram,
Not much idea. Try nseindia for IVX data for indian market. These are useful, traders sell options when IV is greater than HV and buy options when IV is lower than HV.
Regards
Dear Friend,
I do not recommend taking a call based on news based event. If you are very sure then, you can buy call or put. technically it looks good even after today's fall. Regaing ITM, ATM or OTM you can refer to books on options. I prefer OTM or ATM over ITM. Because when OTM or ATM goes...