Option Buy Recomendations

[rakesh_29]

Dont worry about LongTermNifty Options. You havent lost anything and you couldnt have done anything. There are no volumes, and, the buy/sell quotes are wide apart even for at the money options (by a few hundred pts!).

dear THETRADER

The volumes are picking up. As per NSE site, 1002 contracts of NIFTY 30JUN2011- strike 5000 were traded on 28th April. Such long-term options give rise to calendar spread strategies, hence my interest. But I don't know which online broker is offering trades in these.

-Rakesh

 

[ghosh_ak34]

Dear Sir, can u tell me what is the NIFTY range for MAY,2008 ??? Babu

Dear Babu,

It seems Nifty range is 4800 to 5200. The market seems bullish so one can buy Nifty call at 4800 and Nifty Put at 5200.

Regards

 

[trader999]

Sir,
Iam new to options.I joined very early but was busy reading your valuable posts.How should I get the following on options :

1.HV and IV data on options

Regards
Ram

 

[ghosh_ak34]

Sir,
Iam new to options.I joined very early but was busy reading your valuable posts.How should I get the following on options :

1.HV and IV data on options

Regards
Ram

Dear Ram,

Not much idea. Try nseindia for IVX data for indian market. These are useful, traders sell options when IV is greater than HV and buy options when IV is lower than HV.

Regards

 

[trader999]

My dear Ghosh Sir,
Iam thankfull for your prompt answer.As per weekly status of Nifty the difference between R1 & S1 is 296 and IV is 25 less then HV 35.Can I buy call 5000.Kindly advice


Regards

Ram

 

[Raju]

Hi ghosh_ak34

I am very new to F&O , and am only planning to do paper trading for 1-3 months more.I usually have traded in cash segment.Can you show the path as to what to read/learn for trading in f&o.

e.g Understand terms , then collect info on scrips in f&o, then search..etc..
What to start with ..What to read...What to track..What to look for..etc...Please show me the path..I am planning to buy after few months of paper trading as I have recently started trading in cash market with some TA .And trying hard to prepare a system for consistent profits over the period of time.But am very much interested in searching for opportunities in other trading types also.So later one I can stick to whichevr I feel comfortable and whichever suits me..

Thanking You,
Raju

 

[AW10]

Hi Raju,

I am sure Ghosh sir will reply to you at some time. but I couldn't stop myself from contributing my 2 cents here after looking at your enthu and drive to get started. Man, you are doing the right things (getting basic correct, paper trading, then moving on to trading)... Keep it up.

I can give you some pointer so improve your options knowledge as I trade in these.
1) Visit education/ learning section of some of the good options trading sites from US. Like CBOE, optionsexpress, thinkorswim, 888options site
2) Learn the basics - call, puts, ITM, ATM,OTM, Option Greeks - specially DELTA and THETA, Options pricing and various factors affecting it.
3) Don't get confused by many strategies. Just pickup the basic strategy for beginner - my suggestion will be Bullish calls/ Bullish Call Spreads/ Covered call. (leave put based strategies for 2 months down the line).
4) Paper trade them. But be careful when u start putting actual trades. All you emotions will behave very differently when real money is at stake.

All the best. I am sure, very soon you will get enough the grip on this topic
to make consistent money.

Happy trading.

 

[ghosh_ak34]

My dear Ghosh Sir,
Iam thankfull for your prompt answer.As per weekly status of Nifty the difference between R1 & S1 is 296 and IV is 25 less then HV 35.Can I buy call 5000.Kindly advice


Regards

Ram

Dear Ram,

According to data that you have posted it seems buying call @5000 seems okay! But IV and HIV data is not the only which could decide the course of market. Currently Nifty seems slightly bearish then bullish. So, would reco. buying 5100 Put and 4800 call rather.

Regards

 

[ghosh_ak34]

Hi ghosh_ak34

I am very new to F&O , and am only planning to do paper trading for 1-3 months more.I usually have traded in cash segment.Can you show the path as to what to read/learn for trading in f&o.

e.g Understand terms , then collect info on scrips in f&o, then search..etc..
What to start with ..What to read...What to track..What to look for..etc...Please show me the path..I am planning to buy after few months of paper trading as I have recently started trading in cash market with some TA .And trying hard to prepare a system for consistent profits over the period of time.But am very much interested in searching for opportunities in other trading types also.So later one I can stick to whichevr I feel comfortable and whichever suits me..

Thanking You,
Raju

Dear Ram,

AW10 has well said. I would like to add to what he has said that you use f & o as a hedging tool against your cash positions. Only professional traders should go for nacked f & o tradings. So, master the art of trading first before you start naked F & O trading. F & O needs strict discipline and good TA for success.

I would like to suggest you to trade or rather invest in equity for ateast 1-2 years before putting any money in f & o.

Regards

 

[Raju]

Hi AW10 / ghosh_ak34 ,

I am very much thankful to you all for the advice/help.I will surely visit the sites mentioned and continue my study of Options.I would surely concentrate more on TA for success in equity(cash) and then try for options.Till then I would read as much as possible for options also.

Thanks,
Raju