Option Buy Recomendations

[Shravan Reddy]

Hey Shravan,

That is not a good way to Put in a Stoploss.....

Let me see if i can explain this with the same as your trade.......

When u bought a stock/call/put etc..... at 60 and since the market is showing bullishness u can keep a 5-6rs stoploss.....

when u bought it for 60 then your stoploss shud be 55/56 NOT 59.... By keeping at 59 you are not giving the stock any room to move in....... Any slight variations can generate the stoploss....

When the stock has raised to 66 then keep your stoploss as Breakeven(price+brokerage).... then let it move upwards..... this way u will give the stock the space to move and also u will not incur any losses if the market comes down.....Incase the Stoploss get hit , ucan always re-enter....

I normally keep a SL of 10 points below the Spot price...... It all depends on your risk appetite...........

Thanks Chaitanya...thanks a lot..:clap:
Sometimes small answer/suggestion/tip makes a lot of difference
:thumb:

 

[Shravan Reddy]

Hey Shravan,

That is not a good way to Put in a Stoploss.....

Let me see if i can explain this with the same as your trade.......

When u bought a stock/call/put etc..... at 60 and since the market is showing bullishness u can keep a 5-6rs stoploss.....

when u bought it for 60 then your stoploss shud be 55/56 NOT 59.... By keeping at 59 you are not giving the stock any room to move in....... Any slight variations can generate the stoploss....

When the stock has raised to 66 then keep your stoploss as Breakeven(price+brokerage).... then let it move upwards..... this way u will give the stock the space to move and also u will not incur any losses if the market comes down.....Incase the Stoploss get hit , ucan always re-enter....

I normally keep a SL of 10 points below the Spot price...... It all depends on your risk appetite...........

Chaitanya,
I have one question. for ex: I have call bought at 80. CMP 120. i keep a stoploss at 114. Now, if the price comes down till 114, this will be sold and then if the market moves up and my call goes to 150 or so, i will miss my profit rite.. any plan to save this profit without getting caught at 114..one solution is watch the market and change the stoploss according to movement... any other pointers..?

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistence at 5100
Support at 4912

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend strategy posted in 1st post of this thread.

Regards

 

[krishdwi]

I have buy 2 lots 5000 Put@92 please tell me whether to hold or sell it quickly

 

[ghosh_ak34]

I have buy 2 lots 5000 Put@92 please tell me whether to hold or sell it quickly

Keep a hold with a suitable SL.

Regards

 

[terminator_123]

Chaitanya,
I have one question. for ex: I have call bought at 80. CMP 120. i keep a stoploss at 114. Now, if the price comes down till 114, this will be sold and then if the market moves up and my call goes to 150 or so, i will miss my profit rite.. any plan to save this profit without getting caught at 114..one solution is watch the market and change the stoploss according to movement... any other pointers..?

The whole idea is to use a suitable stop loss to protect the capital (your initial investment) and use trailing stop loss to protect your profits.
When deciding on the stop loss, you have to consider the following at the least:
1) What is the maximum you are willing to lose on the trade?
(say pos_size1 x stoploss1 = your_max_loss)
2) Is your stop safe enough from market whip saws ?
(If you feel market will stop you out with its noise, reduce your position size and move your stop down. so the new equation would be:
pos_size2 x stoploss2 = your_max_loss)

Once you are in profits, trail the profit with a new SL. If you feel your trailing stop loss is too close, use the same rule again. Reduce the position and bring down the trailing stop.

 

[Shravan Reddy]

The whole idea is to use a suitable stop loss to protect the capital (your initial investment) and use trailing stop loss to protect your profits.
When deciding on the stop loss, you have to consider the following at the least:
1) What is the maximum you are willing to lose on the trade?
(say pos_size1 x stoploss1 = your_max_loss)
2) Is your stop safe enough from market whip saws ?
(If you feel market will stop you out with its noise, reduce your position size and move your stop down. so the new equation would be:
pos_size2 x stoploss2 = your_max_loss)

Once you are in profits, trail the profit with a new SL. If you feel your trailing stop loss is too close, use the same rule again. Reduce the position and bring down the trailing stop.

Thanks Terminator.. this is what the answer i was looking...:thumb:
I had this in my mind, but not sure whether this is correct...
So instead of assuing things and doing the trade, felt it is better to ask some seniors and proceed.. Thanks again for the valuable suggestion..:clap:

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistence at 5032
Support at 4910

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend strategy posted in 1st post of this thread.

Regards

 

[optionstrader]

Hi Ghosh Sir,

I have exited from Geodesic & SEL Manufacturing Limited.

Kindly guide for Unitec. Continuously there are many bad news coming in Unitec.

I thought in this rally up to 5000 on Nifty, it might go up to your target of 109.

But today it got down to 84.

Ghosh Sir , kindly guide , weather shall i keep holding it or add more if it goes down ?
I now have 500 Quantity at an average of 95.

In case i have to add more on declines, kindly guide for the level at which i can add more.


Ghosh Sir, One more request,

I am also planning to buy Reliance & Reliance Capital for 3-4 months.
Kindly guide, at which levels can i buy them, and also what targets would you advice.


Awaiting your quickest response,

Thanks & Regards,
Optionstrader

 

[SriVijay]

Hi...back after long time....Cheers