Option Buy Recomendations

[kkseal]

Dear Friends,

Market has started its up trend. Now, its time for my recos.

Stocks	CA/PE	Strike Price
==========================
DLF	CA	700
Infy	CA	1530
NTPC	CA	204
ICICI	PE	840
BHEL	CA	2100
TataSteelCA	720
RCOM	CA	540

SL 30% from your CMP and target 50% or more.

Regards

May i know how you fix the SL?

Regards,
Kalyan.

 

[ghosh_ak34]

May i know how you fix the SL?

Regards,
Kalyan.

Dear Kajyan,

Its my suggestion only, you can have your own SL. Please read my previous posts from the start.

Regards

 

[tulika]

Respect Mr. ghosh , can you plz suggest fr how long shud we hold the options??

 

[ghosh_ak34]

Respect Mr. ghosh , can you plz suggest fr how long shud we hold the options??

Hi Tulika,

Keep a target price in mind and exit or keep a trailing SL above target price and hold if it remains above the trailing SL. Exit the moment it goes below the trailing SL.

Regards

 

[ghosh_ak34]

Dear Friends,

Today being a bad day because of global clues so haven't taken any positions. This type of sukker ralies happen often after a long bearish mode. Lets wait, as Nifty has breached the 20 day ema. Will update soon.

Regards

 

[anjubhatia]

ghosh sir,
i hv petronet 70put @5, rpower 300 put at 11, wat i can expect frm it??

 

[ghosh_ak34]

ghosh sir,
i hv petronet 70put @5, rpower 300 put at 11, wat i can expect frm it??

Hi Anju,

Will recommend exit from Petronet Put and hold RPower with SL = 8.0

Overall market is looking slighly bullish. So, avoid holding puts for long.

Regards

 

[optionstrader]

Dear Ghosh Sir,

Sir, you have helped us a lot in gaining through options,
but this market is not helping us options traders.

I once again thank you for your help and support.

Ghosh Sir, Since the market is not allowing us to trade in options, due to this heavy voltility, i would like your expert views on trading nifty options.

Sir, since we are unable to trade stock options, can we go for nifty options trading ?
As, i was just trying this only on paper, i purchased a nifty call 4600 [ when nifty was 4733] at Rs.266 on Tuesday and sold on wednesday at Rs. 385.

Sir is this method right. Kindly also guide for the following questions related to this method :

1. Since nifty was at 4733, is it ok to take in the money call of 4600 ?
2. Are the nifty options more volatile than stock options ?
3. Since at the begining of the month the nifty options are very expensive, shall we wait for 10-15 days to buy the nifty options ?
4. If we sell a nifty call option , of say 5000, does it require margin, if yes, could you please guide us, as to how the margin is calculated ?

Ghosh Sir, if possible, could you please build up a stragey or method for nifty options and please also guide for the above mentioned method.

Awaiting your quickest response,

Thanks and Regards,
Optionstrader

 

[ghosh_ak34]

Dear Ghosh Sir,

Sir, you have helped us a lot in gaining through options,
but this market is not helping us options traders.

I once again thank you for your help and support.

Ghosh Sir, Since the market is not allowing us to trade in options, due to this heavy voltility, i would like your expert views on trading nifty options.

Sir, since we are unable to trade stock options, can we go for nifty options trading ?
As, i was just trying this only on paper, i purchased a nifty call 4600 [ when nifty was 4733] at Rs.266 on Tuesday and sold on wednesday at Rs. 385.

Sir is this method right. Kindly also guide for the following questions related to this method :

1. Since nifty was at 4733, is it ok to take in the money call of 4600 ?
2. Are the nifty options more volatile than stock options ?
3. Since at the begining of the month the nifty options are very expensive, shall we wait for 10-15 days to buy the nifty options ?
4. If we sell a nifty call option , of say 5000, does it require margin, if yes, could you please guide us, as to how the margin is calculated ?

Ghosh Sir, if possible, could you please build up a stragey or method for nifty options and please also guide for the above mentioned method.

Awaiting your quickest response,

Thanks and Regards,
Optionstrader

Dear Friend,

I have posted below in your reply to pm. Find the same below:

Options is all about volume and liquidity and now a days liquidity in Nifty options is better than in stocks. So, you can trade in Nifty. I would advise to do paper trade first as you are doing currently. Do it for 3 months and after 3 months of success go for real trade. Follow following steps:

- Come up with a strategy for Nifty trade (888options dot com could help)
- Define SL, Target and exit policy
- Plan on regular basis and keep revising your strategy if you don't see any profit.

Well what to buy and what not there are lots of books on options for that you can refer to 888options dot com for guide on options.

To put it in my words market is all about trend and options is more about ones prediction. If you see support (S1) at Nifty 4600 and resistence (R1) at 5000 then, you could buy 4600 CA and 5000 Put. See option prices falls exponentially near expiry and its not recomemded to buy options after 15th of month unless you are very sure off your moves.

Selling means writting in options. When you write option you need to pay margin more or less same as Nifty margin. Regarding margin calculation refer to your broker as every broker adds some % to the margin as calulated by SEBI.

Regarding Nifty strategy. Look for S1 and R1 for the previous week and take a call. Look for my previosu thread, I have given one such strategy.

Regards

 

[optionstrader]

Dear Ghosh Sir,

Thank you so much for your prompt reply and guidance.
Your support is very encouraging.

Thanks and Regards,
Optionstrader