Option Buy Recomendations

[Myfuturestock]

Hello,

Can anyone help me in arbitration, or sensible hedging using Stock options. (The last time I had read about arbitration was in a pdf article known as Stocks Made Simple does anyone know where to find this article). If so please let me know regards

Myfuturestock

 

[shankie14]

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

Sir - I am a bit confused on your calculation - I think you are using Week High +Week Low + Week Close - Per my software the high of last week was 4532 and thus P comes to 4404 and S1 at 4276 and R1 at 4475 - which leads to a delta of 198 points.
Please guide me if I have understood your formula correctly..
Thanks

 

[shankie14]

Sir - I understood my mistake in calculation - please ingnore my comment above.
Thanks

 

[viratdg]

Respected Sirs,
I wanna SELL 4600 PE which is trading around Rs.250. Nifty's margin is around 23000. As writer I am liable to pay how much ???. Is it margin + Premium or Margin - premium. Expert advise required Please.

 

[skarpio]

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

While we wait for a response, I'll tag a question onto yours. The xx50 options are illiquid or so I have seen from my limited experience. That leaves us really with no choice but to go for CE 4200 and PE 4500. Am I wrong?

 

[optionstrader]

you are right.

 

[swdas]

Nice Thread!! 4200 is logical support for NF. And I think NF will test it before this expiry. Now what if 4200 breaks? Do we have any other support? Possibly not before 3950 NIFTY future?

Disclaimer: I hold some 4400 June PUT at 100. my SL is 100 on Monday. which will protect me upto 4330 NF level. If 4200 NF is broken I will hold it till expiry.

 

[ghosh_ak34]

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

Dear Optiontrader,

R1~S1 > 300 but its less than 400. So, we can still buy calls for next month at S1 (4200/4250) and puts at R1 (4500/4550). Market is currently bearish so you need to buy more puts than calls. Ratio could be 2 puts to 1 call atleast.

Do not buy options for the month of June as its already nearing expiry.

Regards

 

[ghosh_ak34]

While we wait for a response, I'll tag a question onto yours. The xx50 options are illiquid or so I have seen from my limited experience. That leaves us really with no choice but to go for CE 4200 and PE 4500. Am I wrong?

Dear Skarpio,

Do not buy options for the current months as its nearing expiry. Buy options for the next month as per my previous post.

Regards

 

[skarpio]

Dear Skarpio,

Do not buy options for the current months as its nearing expiry. Buy options for the next month as per my previous post.

Regards

Of course. Actually you have mentioned this (and a few others) which you should really put at the beginning of this thread as the guiding principles to be followed when trading in options.