If Nifty opens with gap up and remain above 20pts till 10:30AM - 10:45 AM buy calls at S1 with SL 20-30% from your buy price. Book profit if your target is achieved or buy puts at R1 around 3:00 PM-3:15 PM and hold call for the next day with a trailing SL of say 10%.
If Nifty opens with gap down and remain below 20pts till 10:30AM - 10:45 AM buy puts at R1 with SL 20-30% from your buy price. Book profit if your target is achieved or buy calls at R1 around 3:00 PM-3:15 PM and and hold put with a trailing SL of say 10%.
sir i always get confuse with ur this view pls make one thing clear is that: if mkt open gap up n remain 20pts up till 10.30 > is it mean if mkt open gap up like at close it is 4549 n open 4625 then if it is at 4545 at 10.30 so v buy call of 4400 n at 3.00 if our tgt not achieved buy put of 4600) pls make it clear for me so i can trade according to ur plan thnx god bless u
Dear Praveen,
I have said it in one of my earlier posts that trend is seen up or down when Nifty goes up 20pts or goes down 20 pts.
Suppose Nifty opens gap up at 4625 then, at 10:30 to 10:45 it came down to 4545, (4625-4545= 80) means 80 pts down from peak, means trend is down so you can buy put at R1. Again at 3:00 PM to 3:15 PM suppose Nifty is at 4570 (4570-4545=25) or 4565 (4565-4545=20) it means trend is again up. So, buy call at S1 and hold it till next day provided at this stage put's SL is not hit and you are still holding it till next day. This will protect you from risk of gap up or down opening the next day.
Suppose by 3:15 PM your SL for put has been hit then, exit the put and do not enter into any trade that day. Wait for next day and trade as per the stated strategy.
You can buy more calls or puts during the day depending on the trend.
If due to gap up next day you are making profit in call bought at S1 then, either book profit or hold it with trailing SL=10%. If put SL is hit i.e. 30% of put buy price then, square off put else hold the put.
In nut shell carry both put and call next day only when SL for both has not been hit.
Regards