Option Buy Recomendations

[debdeeps]

Dear Friends,

Nifty is currently bearish. Nifty range is 4700-5200. Buy puts at 5200,5100 and calls at 4700,4800.

Regards

Hi Ghoshda,
I am very new to options and still never traded in option, still in learning phase. And as with all fresher I also have some basic questions. Let's state my first question now.

Suppose I buy call of NF June 5200 tomorrow and within 2 days nifty move up to 5150 level. Now I don't want to wait till 5200 since I don’t want to lose its time value and want to sell it at 5150, can I do it?

Note that I don’t have any intension of executing the options rather just want to buy and sell the option itself.

 

[ghosh_ak34]

Hi Ghoshda,
I am very new to options and still never traded in option, still in learning phase. And as with all fresher I also have some basic questions. Let's state my first question now.

Suppose I buy call of NF June 5200 tomorrow and within 2 days nifty went up to 5150. Now I don't want to wait till 5200 since I don’t want to lose its time value and want to sell it at 5150, can I do it?

Note that I don’t have any intension of executing the options rather just want to buy and sell the option itself.

Dear Debdeeps,

Yes, you can, booking profit or exit is always your call. Please note, I suggested a Call buy at 4700,4800 and puts at 5100, 5200. it seems currently Nifty reaching at 5200 within 2days is a remote possibility.

Regards

 

[praki73]

Dear friends,

Please suggest any tips of calls and puts for this month?

 

[debdeeps]

Dear Debdeeps,

Yes, you can, booking profit or exit is always your call. Please note, I suggested a Call buy at 4700,4800 and puts at 5100, 5200. it seems currently Nifty reaching at 5200 within 2days is a remote possibility.

Regards

Thanks Ghoshda for confirming. I was thinking earlier that this is true for in the money option only, now I get to know that this is true for out of money option as well. Thanks for your kind guidance.

No I am actually not going to start trade in option now.....clouds of questions are in my mind regarding option trading, I would like to get those clarified first and then start actual trading in option. Anyway thanks for showing your concern.

 

[optionstrader]

Hi Ghosh Sir,

I bough today Nifty 4700 call at 160, only 2 lots.
i could not purchase Nifty Puts of 5100 & 5200 , as they are very expensive.
Is it ok to hold the calls?
Do you think nifty can move up ?

Awaiting your response,
Optionstrader

 

[ghosh_ak34]

Hi Ghosh Sir,

I bough today Nifty 4700 call at 160, only 2 lots.
i could not purchase Nifty Puts of 5100 & 5200 , as they are very expensive.
Is it ok to hold the calls?
Do you think nifty can move up ?

Awaiting your response,
Optionstrader

Dear Optiontrader,

Currently market is bearish and it seems in oversold zone as well, so buying 4700 call is a good option. But keeping the bearishness in mind, would suggest hedge your positions with a put at 5100, 5200 or short Nifty.

Regards

 

[optionstrader]

Hi Ghosh Sir,

Thanks for your prompt response.
---------------------------------------------------------------
Sir, if you remember, you had guided me a formula for nifty options :

"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.
-----------------------------------------------

I had tried to work on that, kindly guide me if i am right or wrong ,
I have taken the figures from last week.

------------------------------

4957+4801+4870/3

4876

s=2x4876-4957=4795
R=2X4876-4801=4951

4951-4795=156
156>300

-------------------------

Sir, kindly correct me if i am wrong, in case if i am right,
then, r1-s1 is less 300, so in this case should we not trade at all,
or buy call or put ?

Kindly guide.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader


ghosh sir,

kindly also guide, since i have bought 2 lots of nifty call at 160,
is it also possible, that if i trade in the same call, i mean,
buy the same call at lower levels, i.em 111 and sell it at 125,
and trade 2-3 times like this, can i reduce the buying price or average ?
Is is ok to do this ?

Awaiting your response,

Thanks & Regards,
Optionstrader

 

[optionstrader]

Hi Ghosh Sir,

I shorted nifty at 4650, as you guided and exited at 4580.
Thanks.

But sir, it did not cover much of the cost of nifty call.
Shall i average Nifty 4700 call bought at 160 ?


Awaiting your response,

Thanks & Regards,
Optionstrader

 

[ghosh_ak34]

Hi Ghosh Sir,

I shorted nifty at 4650, as you guided and exited at 4580.
Thanks.

But sir, it did not cover much of the cost of nifty call.
Shall i average Nifty 4700 call bought at 160 ?


Awaiting your response,

Thanks & Regards,
Optionstrader

Dear Optiontrader,

I thought you would hold Nifty short. Short Nifty again tomorrow and buy Nifty 4700/4600 call before tomorrow's closing i.e. around 3:15 if you see Nifty trading with more than loss of 20 points.

Regards

 

[optionstrader]

Hi Ghosh Sir,

Thanks for the info and guidance.

Kindly guide for the formula mentioned in the earlier post.

Awaiting your response,

Thanks & Regards,
Optionstrader