Option Buy Recomendations

[ghosh_ak34]

thanks sir . u mean buy more put when nifty will 3100 .or buy more call when nifty will reach@2500 in this week only..sir if tomorrow nifty will open gap up which call or put will be buy. pls

Dear Tomdickpary,

Buy call at S1=2500 and put at R1=3100 as per sideways strategy posted in 1st post of this thread. Please read the 1st post and do paper trade first for 3 months as advised earlier.

Regards

 

[aksinghv]

Hello Ghosh Sir:

Any New Recommendations for the month of Nov, 2008?


Thanks,
Anjani

 

[arindamcc]

Mr Ghosh,
I am now holding Nov 2700 PE at 139.00 what is ur opinion about this.

 

[natvarsolanki]

what is your veiw on 3800 nifty call of dec. series

 

[tomdickpary]

Thanks sir .todays @10.30 nifty was 3024 and now 10.45 it is 3004.< -20 point>. Its means we shouls go short .right sir

 

[ghosh_ak34]

Mr Ghosh,
I am now holding Nov 2700 PE at 139.00 what is ur opinion about this.

Dear arindamcc,

Your SL = 98 has been hit. You should have exited it if you are not hedged.
Do not carry home naked positions.

Regards

what is your veiw on 3800 nifty call of dec. series

Dear natvarsolanki,

Have you hedged it. If not then, maintain SL=30% from your buy price and make an exit on rise.

Regards

 

[ghosh_ak34]

Thanks sir .todays @10.30 nifty was 3024 and now 10.45 it is 3004.< -20 point>. Its means we shouls go short .right sir

Dear Tomdickpary,

You need to compare the Nifty spot prices of 10:00 AM with 10:30/10:45AM. Price at 10:00 AM was 3022 and price at 10:30 was 3009 means 3009-3022= -13 > -20 so will wait for confirmation of the down trend till 10:45AM. At 10:45 price is 3009 so no change. Will not initiate any trade and will wait for 12:30 PM price. At 12:30 the price is 2980. i.e. 2980-3009 (price at10:30)=-29 <-20 so will buy puts at R1=3100 at rate around 256 with SL=180 and exit around 290 as trailing SL hits there i.e. with profit of 34 per lot. Check trend at 3:00 PM, price at 3:00PM is 3032 i.e. 3032-2980=42 >20 so will buy a call at S1=2500 around Rs 600 with SL=420 and exit at Rs 620 if you do not want to carry the long or buy put at R1 at around Rs 235 to hedge the long positions. Next day either exit the loss making option and hold the profit making one with trailing SL=10% or exit from both simultaneously, depending on your risk appetite.

Regards

 

[vasanth_ece]

Dear Tomdickpary,

You need to compare the Nifty spot prices of 10:00 AM with 10:30/10:45AM. Price at 10:00 AM was 3022 and price at 10:30 was 3009 means 3009-3022= -13 > -20 so will wait for confirmation of the down trend till 10:45AM. At 10:45 price is 3009 so no change. Will not initiate any trade and will wait for 12:30 PM price. At 12:30 the price is 2980. i.e. 2980-3009 (price at10:30)=-29 <-20 so will buy puts at R1=3100 at rate around 256 with SL=180 and exit around 290 as trailing SL hits there i.e. with profit of 34 per lot. Check trend at 3:00 PM, price at 3:00PM is 3032 i.e. 3032-2980=42 >20 so will buy a call at S1=2500 around Rs 600 with SL=420 and exit at Rs 620 if you do not want to carry the long or buy put at R1 at around Rs 235 to hedge the long positions. Next day either exit the loss making option and hold the profit making one with trailing SL=10% or exit from both simultaneously, depending on your risk appetite.

Regards

Ghosh,

One quick Questions.Why in your comments:Stoploss is 30% and profit is not even greater than 10%.

Eg:
1)
At 3.00 PM ,S1=2500 around Rs 600 with SL=420 and exit at Rs 620 ?

What this mean is we are in a risk of loss of Rs:9000 (180*50) for a mere gain of 1000 (Rs:20*50).


2)
At 12:30 the price is 2980. i.e. 2980-3009 (price at10:30)=-29 <-20 so will buy puts at R1=3100 at rate around 256 with SL=180 and exit around 290 as trailing SL hits there i.e. with profit of 34 per lot.

Here also we kept the stop loss of 30% but the profit exit price is 13%?

According to your 1st post,If we have a gain of 40-50% then we should exit and kept a stop loss of 30-40%.


This means do you consider the volatility of the market,or do you think that 40-50% is not achieved in current market.

One more question,If we hedge the option dont we need to kept the stop loss still?If not,once we sell the option which is in profit at the same time we need to sell the hedged option which is in loss?

Please clarify.

Reg
Vasanth

 

[optionstrader]

Hi Ghosh Sir,


Adding to vasanth_ece vasanth_ece' s question, we cannot avoid the brokerage also , on both sides thatis 2.5 for options.

In order to get decent profit, we have to cover brokerage also.

What do you think ?

Kindly guide.

Awaiting response,

Thanks & Regards,
Optionstrader

 

[ghosh_ak34]

Ghosh,

One quick Questions.Why in your comments:Stoploss is 30% and profit is not even greater than 10%.

Eg:
1)
At 3.00 PM ,S1=2500 around Rs 600 with SL=420 and exit at Rs 620 ?

What this mean is we are in a risk of loss of Rs:9000 (180*50) for a mere gain of 1000 (Rs:20*50).


2)
At 12:30 the price is 2980. i.e. 2980-3009 (price at10:30)=-29 <-20 so will buy puts at R1=3100 at rate around 256 with SL=180 and exit around 290 as trailing SL hits there i.e. with profit of 34 per lot.

Here also we kept the stop loss of 30% but the profit exit price is 13%?

According to your 1st post,If we have a gain of 40-50% then we should exit and kept a stop loss of 30-40%.


This means do you consider the volatility of the market,or do you think that 40-50% is not achieved in current market.

One more question,If we hedge the option dont we need to kept the stop loss still?If not,once we sell the option which is in profit at the same time we need to sell the hedged option which is in loss?

Please clarify.

Reg
Vasanth

Dear Vasanth,

You arre correct currently market is very volatile so we need to consider this. Yes, if you are hedged then, also we need to keep SLs but if hedged we are more on a safer side. Otherwise we will stick to 30% SL and target 40% etc.

Regards