Option Buy Recomendations

[ghosh_ak34]

Hi Ghosh Sir,

I have calculated the S1 & R1 for this week, kindly guide me if i am wrong :

4908+4536+4627/3

4690

s1=2x4690-4908=4472
R1=2X4690-4536=4844

4844-4472=372
372>300

Sir, does this mean , that i can buy call at around 4450 or 4400
and put at 4800 or 4850 ?

Kindly guide for the earlier post also.

Awaiting your response,

Thanks & Regards,
Optionstrader

Dear Optionstrader,

Yes, you got it correct.

Regards

 

[optionstrader]

Hi Ghosh Sir,

Thanks for the info and guidance.


Thanks & Regards,
Optionstrader

 

[trader999]

Ghosh Sir,
I got control over my trading options after reading your guidelines.One doubt.Buying a call at 4400 when nifty is around 4400 is justified subject to market conditions.Buying a put 4800 when Nifty is around 4400 is not understood.Because Nifty Put 4800 is very costly.Kindly clarify?

Ram

 

[vinsur]

hi
tell me about options and its features and hw can i do work with it

 

[ghosh_ak34]

Ghosh Sir,
I got control over my trading options after reading your guidelines.One doubt.Buying a call at 4400 when nifty is around 4400 is justified subject to market conditions.Buying a put 4800 when Nifty is around 4400 is not understood.Because Nifty Put 4800 is very costly.Kindly clarify?

Ram

Dear Ram,

Buying Nifty calls @4400 and puts @4800 is preferred by the system that was talked about earlier. 4800 Nifty Put may be costly in price but it gives fairly good protection against the odds.

Well, you can also write a 4800 Nifty call or short Nifty at current levels to hedge your 4400 call. But writing an option or shorting Nifty, is risky so one needs to trade with strict SL.

If you compare the risks with writing 4800 call or shorting Nifty at current levels then, you will find buying puts at 4800 a safer bet.

Choice is yours what you would prefer as a trader.

Regards

 

[jace48]

Could you please tell me, what does this mean :
" my system gave me long signal at 4685 "

do you use any software for generating the signals ?
if yes , could you please tell me which software it is ?

Awaiting your response,

Thanks & Regards,
Optionstrader

For general purpose charting I use Fibotrader. For signals I have worked on small system, very experimental rudimentary Naive Bayes classifier.

The only thing assured in my system is pain to input/train and get signals

 

[jace48]

Dear Jace48,

Its not easy to guide you unless you share your system.

I hope you have either back tested your system or have paper traded or traded with small money for 3 months ,to test your system. If the result is positive then, okay. No system in the world could give you only profit always. If a system is giving more than 60% times, profit consistenetly then, I will say its a fairly decent system.

Always keep a stop loss whenever you trade or hedge your positions. If you do not know how to hedge your positions, taken based on your system, then, maintain strict SL.

Regards

My system would be for public consumption when it's complete. Currently it's very rudimentary and have recently started giving buy/sell signals.

One of the current problems is that stoploss level of buy sell signals is very wide. For example with current buy signal on closing basis it's at 4670 given on Thursday EOD and stop loss @ 4500 levels. As on friday it's now at around 4600.

With such a huge stoploss level I am trying to preempt the my own system based on simulation and assumptions of closing level of nifty, hence the reason of hedging. My decision to buy at 4620 on thurday instead of 4670 is based on my assumptions of closing price higher than 4620

Backtest is pretty good and reallife execution started on May 30.
Since my capital is pretty small my objective is not to make money but to atleast protect my money so that I can test my testing in reallife.

Thanks..

 

[trader999]

Ghosh Sir,
Thanks for your immediate reply to my querry


Regards

Ram

 

[ghosh_ak34]

My system would be for public consumption when it's complete. Currently it's very rudimentary and have recently started giving buy/sell signals.

One of the current problems is that stoploss level of buy sell signals is very wide. For example with current buy signal on closing basis it's at 4670 given on Thursday EOD and stop loss @ 4500 levels. As on friday it's now at around 4600.

With such a huge stoploss level I am trying to preempt the my own system based on simulation and assumptions of closing level of nifty, hence the reason of hedging. My decision to buy at 4620 on thurday instead of 4670 is based on my assumptions of closing price higher than 4620

Backtest is pretty good and reallife execution started on May 30.
Since my capital is pretty small my objective is not to make money but to atleast protect my money so that I can test my testing in reallife.

Thanks..

Dear Jace48,

Good to know that you are woring on designing a system. If you need any help in creating the system then, do let us know.

In case your SL is very deep, you can shoose to have a smaller SL depending on your risk appetite. I will say let it be 1%-3% of your traded money and target be more than 5& atleast.

Regards

 

[ghosh_ak34]

My system would be for public consumption when it's complete. Currently it's very rudimentary and have recently started giving buy/sell signals.

One of the current problems is that stoploss level of buy sell signals is very wide. For example with current buy signal on closing basis it's at 4670 given on Thursday EOD and stop loss @ 4500 levels. As on friday it's now at around 4600.

With such a huge stoploss level I am trying to preempt the my own system based on simulation and assumptions of closing level of nifty, hence the reason of hedging. My decision to buy at 4620 on thurday instead of 4670 is based on my assumptions of closing price higher than 4620

Backtest is pretty good and reallife execution started on May 30.
Since my capital is pretty small my objective is not to make money but to atleast protect my money so that I can test my testing in reallife.

Thanks..

Dear Jace48,

Good to know that you are woring on designing a system. If you need any help in creating the system then, do let us know.

In case your SL is very deep, you can choose to have a smaller SL depending on your risk appetite. I will say let it be 1%-3% of your traded money and target be more than 5& atleast.

Regards