NIFTY Options Trading by RAJ

[new2trade]

expiry week .. dont watch price now .. it make take another 15 minutes to reach again 40 .. or even 15 .. let see tomorrow and decide ..

As stated by Raj, I sold the pair 7000PE-7500CE June series with the balance 75,000 !
And bought 7400 ce as stated by you at 38 for 25,000/-.

 

[premkumartalreja]

Buy UPL 300 call at 11 ish target is 13 that's a 4 k profit.

 

[healthraj]

I don't recommend any Naked calls or Puts.

My recommendation would be first of all to Trade in Jun-14 Series.

The MAX Pain is at 7200. So normally NIFTY would test the MAX Pain at least once. So there is a good chance of 7200 being hit again.

So SELL THE MAX OI Pair which is 7000PE-7500CE @ 118. For 1 lakh I think you can sell max 4 lots of each. ie 200 Qty.

If you want to take risk then BUY 200 QTY of 7300 PE @ 119. So your netflow is 1. But try to buy so that your difference between SELL and Buy is around 10 points.

NOTE : I have closed my previous positions for 10 points and would entering this trade... As long as 7330 is not broken, I will stick to this trade. If 7330 is broken then I have to change Long Put to Long Call. But the Pair of 7000-7500 Will remain the same as long as the MAX OI is at 7000-7500. Yesterday it was 6800-7500 and Today it is 7000-7500. So there is a 200 point movement which is a Bullish signal. But since in the minor Trend the RESISTANCE is around 7330, I am taking a DOWN bias...

The Strategy is at 22 points profit.

7000-7500 Pair with 12 points profit
7300 PE is 10 points profit

 

[healthraj]

As stated by Raj, I sold the pair 7000PE-7500CE June series with the balance 75,000 !
And bought 7400 ce as stated by you at 38 for 25,000/-.

Probably if you had bought the Same amount of SELL and BUY then you would be at least not in a loss.

 

[Somatung]

As stated by Raj, I sold the pair 7000PE-7500CE June series with the balance 75,000 !
And bought 7400 ce as stated by you at 38 for 25,000/-.

@New2trade

Have seen this pictures today and you came into my mind with your trades. Nothing personal, nothing with what I would value your trading, just your post pictured with this:

Here your current open May 6500 put trading, which looks at the moment like this, as you are on the floor and the bulls keep you down :

and here your situation you may could face by following recommendations which are may not understood in dept when following them. And I pronounce: May. The animal/bull in this picture represents the unexpected, for which you need a trading plan in case you may not have one like until now with your puts.

As I have seen some humor in your posts, I guess you take it with humor and and take care

 

[nirav_j]

As stated by Raj, I sold the pair 7000PE-7500CE June series with the balance 75,000 !
And bought 7400 ce as stated by you at 38 for 25,000/-.

Thanks for your help. But just for my knowledge, what is the reason for the 7400 CE to rise so much by today ?

Ok I got 7400 ce at 38. Hope this works out. I bought for 25,000. Thanks

How to sell the pair 7000PE-7500CE ? Individually ? Or is there anything readymade spread ? Thanks

7400 ce Going down ?!

Hi,

I would strongly recommend you to stop trading for a while. Seemingly you dont have a very clear idea of how Options are priced and how they work, yet you still keep buying !

You now have May PEs and CEs, both who could very well end up with Zero. So thats 75,000 gone.

Also, paper trade the strategy suggested by healthraj and learn how to handle it. Test similar strategies and backtest it and only then employ ...
You ought to know how to handle the pair under various MKT conditions. Also, HealthRaj may/may not be available when you might be in trouble or have doubts. What will you do then ?

Selling options, is more dangerous than buying options. Your profit is limited, but risk, theoretically is unlimited.

Take a break man.

 

[new2trade]

The Strategy is at 22 points profit.

7000-7500 Pair with 12 points profit
7300 PE is 10 points profit

This strategy definitely rocks! Thanks. Yes you are right I should have had the same amount of SELL and BUY.

 

[new2trade]

Probably if you had bought the Same amount of SELL and BUY then you would be at least not in a loss.

Hi Raj,
Right now holding sold pair 7000PE-7500CE June series as suggested by yourself for balance 75,000 !

And bought 7400 ce May series at 38 today for 25,000/-

What do you suggest should be my strategy tomorrow ? Hope I do not lose!

Thanks

 

[prabhsingh]

IF 100 crossed,I am expecting HDIL to touch 108-109 levels very shortly.

 

[healthraj]

I don't recommend any Naked calls or Puts.

My recommendation would be first of all to Trade in Jun-14 Series.

The MAX Pain is at 7200. So normally NIFTY would test the MAX Pain at least once. So there is a good chance of 7200 being hit again.

So SELL THE MAX OI Pair which is 7000PE-7500CE @ 118. For 1 lakh I think you can sell max 4 lots of each. ie 200 Qty.

If you want to take risk then BUY 200 QTY of 7300 PE @ 119. So your netflow is 1. But try to buy so that your difference between SELL and Buy is around 10 points.

NOTE : I have closed my previous positions for 10 points and would entering this trade... As long as 7330 is not broken, I will stick to this trade. If 7330 is broken then I have to change Long Put to Long Call. But the Pair of 7000-7500 Will remain the same as long as the MAX OI is at 7000-7500. Yesterday it was 6800-7500 and Today it is 7000-7500. So there is a 200 point movement which is a Bullish signal. But since in the minor Trend the RESISTANCE is around 7330, I am taking a DOWN bias...

The Strategy is at 22 points profit.

7000-7500 Pair with 12 points profit
7300 PE is 10 points profit

NIFTY Hourly Charts Minor Trend

NIFTY Hourly Charts Major Trend

As per the Hourly charts the Support should come at 7215 and from there the FLAG which was formed from 16-May might end. And NIFTY might Reverse and make High of 7400, 7600 or 7700.

The above strategy is around 22 points profit. So tomorrow if goes below 7215 or goes above 7311 - Will close the Strategy....