Option Buy Recomendations

[columbus]

Re: SBI: Up Trend

Hello,
I spot a Rounded top (dome) in the weekly chart of SBI.
Further, the daily chart candle stick forms a bullish harami on 04th and 5th of Sept.

Is this not an uptrend?
I calculate the uptrend expectation as follows:
right side lower of dome = 1340
dome top = 1516
depth = 1516-1340 = 176.

Expected uptrend = 1516 +176 = 1692

Seniors please verify.

The POSITIVE in the counter is BUILD_UP of volumes.

 

[narayanrk2003]

Dear Ghosh Sir,

I am new to F&O and have been following this thread for quite sime time and it is very helpful.

I have a query regarding margin requirement.

I have one DLF call and one put at 520.(Straddle)

If I want buy a DLF future at 490, what is the margin reqirement?

After buying the future if the stock goes down do I need to increase the margin? (Note : I trade using ICICI direct )

Thanks,
Narayana Rao

 

[bandlab2]

you need a initail margin of around 25% to buy the future -- check your brokere or exact number. after that you need M2M -- Mark2Market-- money on daily basis. if stock goes up, broker pays you M2M, if it goes down yo need to pay M2M. If you dont have enough cash to pay for M2M, your broker will liquidate some stocks which are pledged as margin. thumb rule, keep another 25% as cash for M2M. Key is never over-leverage your positions

your future is independant of options as far as margin, M2M are concenred. options are NOT marked to market on daily basis.

 

[ghosh_ak34]

Dear Ghosh Sir,

I am new to F&O and have been following this thread for quite sime time and it is very helpful.

I have a query regarding margin requirement.

I have one DLF call and one put at 520.(Straddle)

If I want buy a DLF future at 490, what is the margin reqirement?

After buying the future if the stock goes down do I need to increase the margin? (Note : I trade using ICICI direct )

Thanks,
Narayana Rao

Dear narayanrk2003,

Margins though fixed by SEBI varies from broker to broker. Margin has two parts span margin and mtm margin. As per sharekhan, DLF Span margin is around Rs 60,000 per lot and mtm will depend on loss one incurrs. In case you are hedged then, your margin pressure reduces to some extent.

You need to contact your broker for margin details.

Regards

 

[dhinakar113]

Dear Gosh ak34ji,

I am holding Sep Nifty 4500 CA @75 Rs and 4600CA @ 71Rs each 100 nos. Pl advise, where can I put Stop Loss. Do you think Nifty will cross 4600 again this month? I think to hold till 19th.

Regards,
Dhinakar

 

[ghosh_ak34]

Dear Gosh ak34ji,

I am holding Sep Nifty 4500 CA @75 Rs and 4600CA @ 71Rs each 100 nos. Pl advise, where can I put Stop Loss. Do you think Nifty will cross 4600 again this month? I think to hold till 19th.

Regards,
Dhinakar

Dear Dhinakar,

I think you got too many calls without any hedge. The SL for 4500 CA is 53 and SL for 4600 CA is 50. Try to reduce your positions whenever you get any oppourtunity.

Overall Nifty is still in bearish mode. So, its not much likely to cross 4600 in a hurry.

Regards

 

[ghosh_ak34]

Dear Friends,

For the next week R1~S1 < 300, so trade with sideways strategy or do not trade. Buy calls at S1 and puts at R1. R1 = 4500 and S1 = 4200.

To understand my Nifty trading strategy, please read the 1st post of this thread.

Regards

 

[columbus]

Dear Friends,

For the next week R1~S1 < 300, so trade with sideways strategy or do not trade. Buy calls at S1 and puts at R1. R1 = 4500 and S1 = 4200.

To understand my Nifty trading strategy, please read the 1st post of this thread.

Regards

ghosh,

First time posting a message to you.You are doing wonderful work.Though I do not trade much in OPTIONS.If you give liberty to correct you,

"For the next week R1~S1 < 300, so trade with sideways strategy or do not hold. Buy calls at S1 and puts at R1. R1 = 4500 and S1 = 4200."

 

[dhinakar113]

Dear Ghosh,

Thank you for your prompt reply and guidance. I will do as suggested. Expect the market to open gap up on Monday in view of the NSG approval.

Regards,
Dhinakar

 

[ghosh_ak34]

Dear Ghosh,

Thank you for your prompt reply and guidance. I will do as suggested. Expect the market to open gap up on Monday in view of the NSG approval.

Regards,
Dhinakar

Dear Dhinakar,

Yes, Nifty seems opening up on Monday so there will be a good oppourtunity to exit and book profits.

Regards