100% profit in 6 months...!

[linkon7]

linkion one more question if suppose feb expire in less than 5000 than i will be profit or whatplz explain i can take this put till expire .

If feb expires at 4940, then the value of 5000 put will be 60, irrespective of what price you bot it for.

Its highly advisable to get your basics right about options and only then trade it. Its the worst wealth destroyer there is in this market. hardly 10% of options have any value on the day of expiry. Unless u know what you are doing and your exit plan is crystal clear, avoid taking positions in options.

The bright side is, once you have a clear idea about market direction and its dynamics, u can make music with options and NF combo...

 

[linkon7]

expecting trading to be between 4930 to 4970 region.
Pivot for the day is 4940.


Strategy for the day,
Between 4930 to 4945...accumulate 5000 calls.
between 4950 to 4970...short 5100 calls.

 

[Luv_Stocks]

Can you please give me a few reasons why you feel shorting 4600 put is real safe. I can think of a few reasons why its not safe yet:

* 4966 is the 38% retracement of this fall... we havnt even tested that level yet. But looking at the pace of the fall, 5030 (50% retracement) is where most of the bears would place their SL.

* after 9 days of continuous lower lows and lower highs, today we managed to break that trend. Unless a breach of 4935 (day before's High) takes place tomorrow, shorters will take this opportunity to hammer it down further.

* We has a hammer the day before and today we had a green day. That's normally a confirmation that a bottom is in place. Bears would run for cover and bulls would be aggressive buyers towards the end of the day. But the last half hour saw selling pressure. Now if selling pressure comes towards a fag end of a confirmed trend reversal day, i would be worried.

* All leading indicators pointed towards a extremely oversold conditions. A dead cat bounce was always on the cards. But thats not a signal to go counter trend.

* S&P broke important 1088 support levels. They ignored good results and general feeling is market is ahead of valuations and need to correct.

* china is really putting a lot of pressure. it was down 2% today and dragged a lot of asian index with it.

* after almost 10 months of positive flow by the FII, January saw the first negative monthly flow. Why hope that they will suddenly put money back into the same market they are so eager to get out of...

* this years budget is more concentrated on withdrawal of stimulus package and fiscal deficit. Expecting a pre budget rally is only possible after we trade above the 5160 mark.

Good Assessment...

Mental preparation helped you short below the pivot...! If you wouldnt do your home work, then all the crap about global cues would make you think twice about shorting. waiting to see your activity report today...

 

[linkon7]

Activity Today :

4940 is the pivot… opened near the pivot..went down
cam is at 27…
opened at 39…
coming down…saala…
shorted at 4934… 4 lots
reversal at 4952
exited 2 lots at 4923 sl 4939 for the rest
exited 5000 call..at 76…
something is wrong today….
too much discount…
buyer seller ratio looks bad
if 4900 is broken will exit
4886 yesterdays support zone
it broke
exited 95…
if 4906 is broken, will buy 5000 call back…
tanken sen coming down…
ichi..hrly looks bearish…
longed 4898… sl 4890
made a high of 4902..coming back
looks like a big one coming
changed sl to a reversal…
looking flat
maybe 4872 will be tested if 90 breaks…
broken…
reverseal hit at 4889.4
sl at 4902…
lol… dada says to close the screen….after I told him I'm short…
if he says to place SL at 4912, 4912 it is…
and exit if I get buy in 15 min TF…
it'll take forever
came to 63… wow
damn… he says untill I get a buy… not exit…
placed my sl at 4870…
sl got hit…
now if market falls..he is going to have my butt on a silver platter
4880 now… what a spike…wow
bot 5000 call at 59…
diff now effective 6 points only…
worth holding
bounced off the 34 ema
dada's new macd is good… like his new adx also…very responsive…
it fell..
****…
4857…shorted sl 4865
sl hit…
reversed at 4863… sl at 4855…
SL hit…
enough for today…
dada is going to kill me…
4822 broken…

 

[rajputz]

what happened today sir....its quite confusing.....

 

[linkon7]

5000 call
sold at 76 bot back at 59
76-59 = 17-1 = 16

5100-5000 call spread cost
22-16 = 6 points

nifty activity:
sold at 4934, covered at 4923, points gained 11, -2 as brokerage, net gain of 9 points
sold at 4934, covered at 4895, points gained 39, -2 as brokerage, net gain of 37 points
bought at 4898, covered at 4889, points gained -9, -2 as brokerage, net gain of -11 points
sold at 4889, covered at 4870, points gained 19, -2 as brokerage, net gain of 17 points
sold at 4857, covered at 4865, points gained -8, -2 as brokerage, net gain of -10 points
bought at 4865, covered at 4855, points gained -10, -2 as brokerage, net gain of -12 points

 

[linkon7]

positions held :

5000 call and 5100 call spread :
cost : 6
present price 21
No.of lots : 10

Unrealised profit : 7,500 /-

profit realised today :
N/f : 3,000 /-


total profit booked till date : 50,850 + 3000 /- = 53,850 /-
Total m2m profit : 7,500 /-

 

[linkon7]

Overview of today's performance :

Got the direction right but screwed up badly. Got to get used to trading 15 min TF...
Should have waited for a buy signal in 15 min TF. Or at least shorted again below 4970. Got to get rid of the mental bias. There was no buy signal in 15 min... 2 good sell signal that gave over 80 points. i managed 30. There was no reason for buying the 5000 call... or should have exited that atleast. Just because the difference is low doesnt mean i cant make it free...Stupidity...!

will trade 15 min tomorrow...even if it means wider SL... and waiting for eternity for a trade...

 

[linkon7]

what happened today sir....its quite confusing.....

Too much importance is placed on the hammer and followed by the up day....
what was ignored was the sell off that took place towards the end of the up day. If the down trend had reversed, then we had all the reason to open above 4950 today and test 4966 (38% retracement). But we had a huge discount right from the word go... there was huge selling coming through.

 

[sumitdasjoshi]

Well i exited my 3 5000 put and take a losse of 2000 rs well what do you think now market will go what the ta suggest