Option Buy Recomendations

[skarpio]

[...] 245.5034 and for the puts is 220.0551, so what does it mean ?

Does it mean that we can purchase the options (calls or puts) at the current price, and it will reach (calls-245.5034) or if i buy puts at present price, does it mean that the options price can go till(puts-220.0051).

It gives you an idea of what the option prices are, at the end of yesterday (or whichever date you use). Just an idea. It does not mean, prices will reach that level. An accurate calculation (that will tell you what the price should be at the next instant) is difficult and impractical. Black Scholes is a model that tries to give you the fair value of an option given the basic inputs.

The calculation is as follows :
Share price :4500
Time to expiration (days) :23

The option was left with 23 days sometime back. Calculate the number of days from the expiry date e.g. for calculating the fair price after today's close you should ues today's Closing price and time left as (28 Aug - 5 - 1) = 22.

 

[jace48]

HI Skarpio and Ghosh Sir,

The calculation is as follows :
Strike Price :4500
Share price :4500
Time to expiration (days) :23
Volatility (%) :52
Annual interest rate (%) :9

Call Options Value =245.5034
Put Options Value =220.0551


Awaiting your response,

Did you put the HV correctly. The current Historical Volatility(HV) is 29%

Hence the price of 4500 call option is approx 143 and that of put is 117.
If price is higher than 143 then it's IV at work. Which can be reversed calculated

 

[optionstrader]

Hi Ghosh Sir,

What are your views on Reliance 2250 & 2310 call ?
Kindly guide.

Awaiting your response,

Thanks & Regards,
Optionstrader

 

[optionstrader]

Did you put the HV correctly. The current Historical Volatility(HV) is 29%

Hence the price of 4500 call option is approx 143 and that of put is 117.
If price is higher than 143 then it's IV at work. Which can be reversed calculated

Hi Jace48,

I have used the following link to calculate the options price.
Kindly guide Where shall i put the hv value in the for on that page ?
and also from whrer can i find the value, i have taken all the values from
the NSE Site ?

Actually i am confused again ?

Awaiting your guidance.

Thanks & Regards,
Optionstrader

 

[optionstrader]

Hi Ghosh Sir, Skarpio & Jace48

i have also calculated the values for reliance.
kindly guide if i am correct.

Strike price 2310
Share Price 2276
expiry 22 days
Volatility (%) 66 ( taken from this link
Annual interest rate (%) 9

and the results are :
Call 135.3098
Put 156.8127


Kindly guide if i am correct.

Awaiting your response,

Thanks & Regards,
Optionstrader

 

[jace48]

Hi Jace48,

I have used the following link to calculate the options price.
Kindly guide Where shall i put the hv value in the for on that page ?
and also from whrer can i find the value, i have taken all the values from
the NSE Site ?

Actually i am confused again ?

Awaiting your guidance.

Thanks & Regards,
Optionstrader

Dear optionstrader,

If you intend to do intraday trading. I think you should shy away from added complication else I strongly recommned you to download the Derivatives Digest PDF from below mentioned link

http://www.sharekhan.com/SSKICMT/Upload/Drv_Upload/DerivativesDigest.pdf

In the link you have posted set the volatility as 29% to get the value.

I have modified version of options trading workbook which I use for calculation of HV among other things. I have one more sheet for HV which is linked with FiboDB but you can hand edit the value.

You can download the file from below mentioned link
http://www.geocities.com/jace48/OptionTradingWorkbook.xls

 

[jace48]

Hi Ghosh Sir, Skarpio & Jace48

i have also calculated the values for reliance.
kindly guide if i am correct.

Strike price 2310
Share Price 2276
expiry 22 days

and the results are :
Call 135.3098
Put 156.8127

Close. If 65% volatility is considered but according to my calculation the HV should be 41%

 

[ghosh_ak34]

Hi Ghosh Sir,

What are your views on Reliance 2250 & 2310 call ?
Kindly guide.

Awaiting your response,

Thanks & Regards,
Optionstrader

Dear Optionstrader,

Reliance doesn't look good on charts. So, wouldn't reco. an entry.

Regards

 

[nareshch]

Dear optionstrader,

If you intend to do intraday trading. I think you should shy away from added complication else I strongly recommned you to download the Derivatives Digest PDF from below mentioned link

http://www.sharekhan.com/SSKICMT/Upload/Drv_Upload/DerivativesDigest.pdf

In the link you have posted set the volatility as 29% to get the value.

I have modified version of options trading workbook which I use for calculation of HV among other things. I have one more sheet for HV which is linked with FiboDB but you can hand edit the value.

You can download the file from below mentioned link
http://www.geocities.com/jace48/OptionTradingWorkbook.xls

Hi Jace ,

I downloaded the Option trading workbook . In HV section , i can only see data upto 08/01/08 and HV as 29% . I think we have to fill data till date to get exact HV .Please correct me if i am wrong .

Naresh

 

[jace48]

Hi Jace ,

I downloaded the Option trading workbook . In HV section , i can only see data upto 08/01/08 and HV as 29% . I think we have to fill data till date to get exact HV .Please correct me if i am wrong .

Naresh

The data was till 8/4/2008 some order problem and yes their is small correction the HV is 42%