Option Buy Recomendations

[ghosh_ak34]

dear gosh,

why is nifty not moving when we buy call and put option. ie. i bought nifty call-6200-jan@140 and put-6000-jan@71 nifty was struggling 2 move for abt2-3 days, just today sold nifty call 189....is this becoz we buy both call and put of nifty...nifty doesnt know which direction 2 move or it is the broker(or operator....) doesnt want us to earn???.. i heard that IB appoint rm purposing to grab money from its clients.

Dear Nandu,

Nifty is range bound. It fell today because people want to put money in Rel. Power, may be. This is part of the game, which we can never predict. We can have strict SL and a target in mind, where we will exit. Come up with a system, make a plan before market opens and stick to the plan. With your system you should do paper trading first for months till you see your system gives profit for ateast 3 months.

Regarding nifty, will suggest to wait. before we can take a call based on market direction.

Regards

 

[ghosh_ak34]

Hi ghosh sir....
ur suggestion on Reliance call ws very helpful
i sold tht cal few days back at avg price of 137
Currently i'm holding Infosys SP 1620 call 2 lots at 44 rs.
Wat shud b my strategy?? is any more downside left in infy??
It is already down by 70 Rs. in 2 days..
wat we can expect from infy call in comin n next week?? pls suggest..

Also i want to buy Nifty 28 Feb Call SP 6600
At wat price shud i buy the call according to ur views.. current price is 90 Rs.

Dear Prashant,

Infy is going nose down. I will exit infy. About Nifty, unabe to predict now. Will just wait and watch.

Regards

 

[ghosh_ak34]

Thanks Ghosh, any buy recos for futures or should i be in cash for the time being?

Dear Raviraj,

Lets wait till market settles down. Otherwise we will end up loosing money only.

Regards

 

[nandu]

Dear Nandu,

Nifty is range bound. It fell today because people want to put money in Rel. Power, may be. This is part of the game, which we can never predict. We can have strict SL and a target in mind, where we will exit. Come up with a system, make a plan before market opens and stick to the plan. With your system you should do paper trading first for months till you see your system gives profit for ateast 3 months.

Regarding nifty, will suggest to wait. before we can take a call based on market direction.

Regards

thanks for your reply Mr.ghosh. I meant this stratergy i used was on all occasion. ie whenever i buy "call and "put" +50/-50(I used to buy nifty only there is a oppur. nifty goes 50-70 pts up).but, nifty never moves beyond that +50/-50. i really got bugged up several times. when i play virtual game (moneycontrol website). All my stocks are hitting the target on the next day. but when i use option "at-the-money". Nifty is struggling 2 move?...so i got an idea brokers are playing in the middle 2 grab our money. Did u exp. any sort of situtaion like this??

 

[RVINOTHRAJAKUMAR]

Dear gosh .,
At this level wich is option is best to buy?
Thanks in advance & Regards.,
VINOTH

 

[ghosh_ak34]

Dear gosh .,
At this level wich is option is best to buy?
Thanks in advance & Regards.,
VINOTH

Dear Vinoth,

Nifty is not showing any direction so I will not reco. any options trading. Will wait for market to settle down.

Regards

 

[ghosh_ak34]

thanks for your reply Mr.ghosh. I meant this stratergy i used was on all occasion. ie whenever i buy "call and "put" +50/-50(I used to buy nifty only there is a oppur. nifty goes 50-70 pts up).but, nifty never moves beyond that +50/-50. i really got bugged up several times. when i play virtual game (moneycontrol website). All my stocks are hitting the target on the next day. but when i use option "at-the-money". Nifty is struggling 2 move?...so i got an idea brokers are playing in the middle 2 grab our money. Did u exp. any sort of situtaion like this??

Dear Nandu,

Yeah! I have exp. this earlier and it happens many times when nifty is range bound and one is trapped in it. For options to be successful, the nifty, if you are a nifty trader, should move in a particular direction steadily either up or down. When to buy option is a common question and there could be many answers to this. Normally, what I do I am sharing it here. First find last weeks support (S1)and resistence level (R1). R1 ~ S1 = 300 to 400 points.

P = (Weeks High + Weeks Low + Weeks Close)/3
S1 = 2P - H
R1 = 2P - L

If (R1 - S1) >= 300 then,
Buy call at S1 and put at R1.
else
Do not trade at all.

Keep a target and SL in mind and maintain that strictly. Do not hold call or put after 20th of the month. If you are very sure that S1/R1 will be broken buy put at S1 and call at R1. Hope this helps.

Regards

 

[anjubhatia]

Dear sir,
wat return i cn expect?
6100jan ce@78.
6200febce@160

 

[ghosh_ak34]

Dear sir,
wat return i cn expect?
6100jan ce@78.
6200febce@160

Dear Anju,

Calls have already fallen and since you are still holding it. Then hold them for another week max. Will recomend to buy MiniNifty. Now, when to buy it, if Nifty is up more than 20 points till 10:30 10:45 AM then, buy MiniNifty. And if it remains up 20 points or more at 3:00 PM then, hold that MiniNifty, otherwise exit. Do the same next day till market settles down. Maintain SL = -50 points and T1 = 100 points, T2 = 150 points from your buy price.

Hope the above helps.
Regards

 

[rickyric_ny]

Dear Nandu,

Yeah! I have exp. this earlier and it happens many times when nifty is range bound and one is trapped in it. For options to be successful, the nifty, if you are a nifty trader, should move in a particular direction steadily either up or down. When to buy option is a common question and there could be many answers to this. Normally, what I do I am sharing it here. First find last weeks support (S1)and resistence level (R1). R1 ~ S1 = 300 to 400 points.

P = (Weeks High + Weeks Low + Weeks Close)/3
S1 = 2P - H
R1 = 2P - L

If (R1 - S1) >= 300 then,
Buy call at S1 and put at R1.
else
Do not trade at all.

Keep a target and SL in mind and maintain that strictly. Do not hold call or put after 20th of the month. If you are very sure that S1/R1 will be broken buy put at S1 and call at R1. Hope this helps.

Regards

yes thanks sir, usually from 17th, i trade "in-the-money" options where delta > 0.4 ~ 0.5 people say, to trade after 20th is easy..just SELL a CALL/PUT option and trade at "out-of-money"..limited profit
as after 20th the options depreciate it will be easy to "BUY" on the day of expiry rather to "SELL".... how far this works???