Option Buy Recomendations

[optionstrader]

Hi Ghosh Sir,

Thanks for the guidance & nifty levels.
Sir, this is a very good way , that you have guided these levels.

Thanks Again.

Thanks & Regards,
Optionstrader

 

[mitasatyajit]

Dear Sri Ghosh

Attached herewith one future-option strategy for no loss. It is purely assumed trade for nifty. Margin assumed as 25000/- per lot of future. Prices are close of 13.06.2008. Please enlighten me, if I am wrong.

Thanks in advance.

Regards.

Satyajit

 

[skarpio]

[...]2nd Strategy - Buy Nifty 4300/4400 Calls and write 4800/4900 Calls.

The only advantage I see of writing a call instead of buying a put is to finance a part of the margin. Is there something more to this strategy?

 

[ravalsb]

The only advantage I see of writing a call instead of buying a put is to finance a part of the margin. Is there something more to this strategy?

Hi,

Time factor works in your favour if we write call here rather buying put.

Regards

 

[ghosh_ak34]

Dear Sri Ghosh

Attached herewith one future-option strategy for no loss. It is purely assumed trade for nifty. Margin assumed as 25000/- per lot of future. Prices are close of 13.06.2008. Please enlighten me, if I am wrong.

Thanks in advance.

Regards.

Satyajit

Dear Satyajit,

Yours strategy looks fine. Are you following some system. If so, would you mind sharing the same with us.

Regards

Regards

 

[skarpio]

Hi,

Time factor works in your favour if we write call here rather buying put.

Regards

Yes, makes sense. Thank you very much!

 

[AW10]

Dear Sri Ghosh

Attached herewith one future-option strategy for no loss. It is purely assumed trade for nifty. Margin assumed as 25000/- per lot of future. Prices are close of 13.06.2008. Please enlighten me, if I am wrong.

Thanks in advance.

Regards.

Satyajit

Thanks for sharing your strategy /approach with us all. At first glance, it looks attractive but I do see 2 gaps here -

1) Brokerage and commission - as there are 4 legs, the brokerage will eat away your profit (specially on the trades where you see profit of 600 rs.)
2) slippage - You are trying to sell 4800 PUT which is far out of money. These out of money options have huge difference in their Bid and Ask price. Taking closing price is not a fair assumption here. E.g - 4800 PUT has last traded price of 327 but BID is at 246 and ASK is 250. So you will not get 327 when trying to place the order.
Generally ATM Options or Near-the-Money options have small slippage but it widens as you move deep ITM or OTM.

Hope this helps you in fine tuning your strategy. Another hint - try out the combination
Short Future 4485 + Sell 4500 Put + Buy 4500 Call. The option set will cost you around 60 Rs. and if you can live with that as risk on the trade then you can very well on holiday after placing that combination and forget about the trade.

Anyway, Great attempt. Best of luck

Happy Trading.

 

[AW10]

plz guide me ... it was my first trade in option... I've bought 500 Nifty-4400-put @ 54.70 ....... its now trading at 49.40 .... what shld I do... is it sensible to wait 2-3 days?

Also plz tell me hows the brokerage calc in options, my indiabulls says they charge Rs 100 per lot... does that mean I have give 500 or 10 lots i.e. 10x100 = 1000 Rs as brokerage???

Anupamluv,
Congratulations for getting in at the right time. Your option had bid/ask price of at 101/102. That means, you have already got 100% in a day. Great Start man.

The closing price of 101 has real value of (4400-4355 = 45 rs.) and Time Value of (101-45 = 56 rs). As there are 4 more days of life remaining for this option, your time value is going to disappear really fast from now onward. Real value will keep changing based on the value of NIFTY.
You can do following
1) Book profit asap and close the trade
2) Put a Sell Stop order (say at 90 rs level) so if the traded price goes below 90, then you can sell and book the profit. You are leaving 10Rs on the table but it also gives you the chance to update your stoploss and milk more profit if mkt falls further (most likely case now).
3) Do nothing and leave it as it is. Risk is you are giving control to market and hence you need to accept whatever is the result.
4) As a real option player, I will adjust this trade and create 4400 - 4300 put spread by selling 4300 put and collecting premium of Rs. 61. In best case scenario, it will give me profit of 100+7 rs of net premium (if mkt closes below 4300 then the effective value of this spread will be 4400-4300 = 100) or in worst case, a profit of 61-54 = 7 rs (if market goes above 4400). If market stays between 4300 and 4400 (say X) then the profit will be 4400-X+7 rs..

Is that great to have a trade which is not going to loose anythign irrespective where market is going..

Regarding Brokerage - chk you contract note from IBulls. If I were you, I will adjust the position and let the expiry take care of 2 leg of the transaction. This will save me the brokerage.

You have enough to work on now.. To understand more about this, plz read on Bullish/bearish Spreads.

Happy Trading.

 

[skarpio]

I booked profit at 88.00 BUT as the nifty went below 4470, I went contrarian and bought nifty-4500 call @ 24.70 (800 calls) ......... now its trading at 17.00 ... do u think its right time to buy it or as some of my frnds said I should have gone for nifty-4200-put instead...

I'm very nervous as I played a very high risk game ..... as only 4 days remaining for expiry and Im expecting mrkts to rise toward or cross 4500... What do you say??? can it go further down??? ....worried! as todays markets already seen much activity in nifty-4200-puts...

Bye...

You can still go for a spread: maybe a calendar spread with the July series or sell a call option.

 

[optionstrader]

Hi Ghosh Sir,

Kindly guide on the following levels for the next week.
I have taken the call & put values for July Series.

4679+4333+4347/3=13359

13359/3=4453

s1=2x4453-4679=4227
R1=2X4453-4333=4573

4639-4382=346
346>300

Ghosh sir, since r1-s1 is greater than 300,
so, can we buy call at around 4200-4250 and put at 4500-4550 ?

Kindly guide for this and any other of your strategies.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader