Option Buy Recomendations

[ghosh_ak34]

Dear Ghosh Sir,

I have taken 3900 call at Rs. 259 and 4300 Put at Rs. 335. But I am still not able to understand exit strategy. When should I decide to exit a loss making call. Should i put some stop loss for both the call and put just after buying. If so how much % should it be. Please suggest and make your strategy more clear to us by giving some examples.

regards,
Priyank

Dear Priyank,

The exit policy has been stated earlier in the thread as well. Here it is again for you :

Well will reco. a SL = 20-30% from buy price. Exit the loss making call if call hits SL and hold profit making put with a trailing SL and vice versa.

Buy options only after 10:30 AM and after the idea of the Nifty direction. For example if Nifty opens with a gap down more than 20 pts then, buy put at R1 only and if Nifty opens with a gap up more than 20 pts buy calls at S1 only.

Its not necessary to buy both calls and puts at the same time. But hedging is recommended unless one is very sure of the trend.

Always maintain a strict SL say 20-30% from your option buy price.

In case both the call and put SL is hit. Do not trade and wait for a trend to emerge first.

Hope the above helps.

Regards

 

[anjubhatia]

Dear ghosh sir,
i hv nifty ce 3900@150, closing 96, wat i can expect in it?
also i hv ranbaxy ca 460@19, closing 14, wat i can expect in both.
Thanks

 

[pokrate]

Option brokerage is set by SEBI.
All brokerage houses will use the same charges.
I am using sharekhan and its also charging the same.

 

[ghosh_ak34]

Dear ghosh sir,
i hv nifty ce 3900@150, closing 96, wat i can expect in it?
also i hv ranbaxy ca 460@19, closing 14, wat i can expect in both.
Thanks

Dear AnjuBhatia,

I hope you have made good profits in Ranbaxy 460 Call (closing at 31.25) and did an exit. Volume is very low so its preferred to make an exit after a profit.

For Nifty options refer my stated strategy earlier. Always maintain a SL say 20-30% in options. In bearish market, buy 2 puts at R1 and 1 call at S1 atleast.

Regards

 

[ghosh_ak34]

Dear Friends,

Below are the calculations as per my strategy.
Weeks High = 4111
Weeks Low = 3823
Weeks Close = 4092
2P = 2 * (4111+3823+4092)/3 = 8017.33333
R1 = 2P - L = 4194.33333
S1 = 2P - H = 3906.33333

R1 ~ S1 = 288 <300. So, would recommend not to trade next week according to my stated strategy earlier..

Regards

 

[jace48]

Dear Friends,

Below are the calculations as per my strategy.
Weeks High = 4111
Weeks Low = 3823
Weeks Close = 4092
2P = 2 * (4111+3823+4092)/3 = 8017.33333
R1 = 2P - L = 4194.33333
S1 = 2P - H = 3906.33333

R1 ~ S1 = 288 <300. So, would recommend not to trade next week according to my stated strategy earlier..

Regards

Ghosh_ak34,

Below are the calculations.

Weeks High = 4118
Weeks Low = 3790
Weeks Close = 4092
2P = 2 * (4118+3790+4092)/3 = 8000
R1 = 2P - L = 4210
S1 = 2P - H = 3882

R1 ~ S1 = 328 >300.

From what I understand Nifty is still bearish

Thanks...!


PS: Are you using Fibotrader?

 

[ghosh_ak34]

Ghosh_ak34,

Below are the calculations.

Weeks High = 4118
Weeks Low = 3790
Weeks Close = 4092
2P = 2 * (4118+3790+4092)/3 = 8000
R1 = 2P - L = 4210
S1 = 2P - H = 3882

R1 ~ S1 = 328 >300.

From what I understand Nifty is still bearish

Thanks...!


PS: Are you using Fibotrader?

Dear Jace48,

My cals says R1~ S1 < 300 so, would not trade. Have not included Monday's data into my cals as there was not much movement either ways.

Market, I think will remain sideways and volatile next week. 22nd will decide further course of action.

Yeah! I am trying Fibotrader.

Regards

 

[rohangawale]

ghosh sir,
on friday i purchased 3700 nifty 31st july put , 1000@ 49.9.

what will be the scenario on monday and tuesday.
it will be better to sell it on monday only na?
pls guide

 

[ghosh_ak34]

ghosh sir,
on friday i purchased 3700 nifty 31st july put , 1000@ 49.9.

what will be the scenario on monday and tuesday.
it will be better to sell it on monday only na?
pls guide

Dear Rohanawale,

Is it Nifty put or call. Anyways try to exit on Monday, normally its not recommended to have positions before a big event like this.

Regards

 

[beginner_av]

Dear Rohanawale,

Is it Nifty put or call. Anyways try to exit on Monday, normally its not recommended to have positions before a big event like this.

Regards

Why exit? Unless you have WRITTEN the options?