Option Buy Recomendations

[awachat]

Uploded data for last week till today 10.30 AM

 

[trillian]

Dear Ghosh

Here i am posting wt i analysed @ NIFTY today during mkt hours.

Today nifty

opened @ 4358.85
4386 @ 10.30 +27.35 from open
4370 @ 10.45 +12 from open
4426 @ 12.30 +56 from 10.45 here i entered 4200 CE @ 274 with SL of 192
4523 @ 3.00 +97 from 12.30 As per ur strategy i can square off here or hold it for next day and hedge the position by buying put at S1.

Ok here comes the result if i square off my position means i will get around 4400 profit for 1 lot i.e the cmp of 4200 CE @ 3.00 P.M was around 362. So 362 - 274 = 88 and per lot i.e 88*50 = 4400. And if i hedge my position means I should hold 4200 CE @ CMP and need to buy 4200 PE @ Cmp, whereas i should have bought 4200 PE @ 42.9 to hedge my hedge my 4200 CE.

So i have done for today. Please tell me where I am wrong?

And also i have doubt in Exit. whether I need to wait for 3 o clock or i can close my postion before? so please explain that part.


Note:

So what i did here was i didn't entered the trade until i get an confirmation i.e +20 or -20 is it correct or we want to use some other strategy?

what i learned here was we want to back test 10.30 with 10.45. Ghosh is it correct?

please let me know.

Thanks

 

[ghosh_ak34]

Respected Ghosh sir,
i am holding a few Cairn Sep call options srtike 160 @ 8.40.. shud i hold them ?? plz suggest.
THanks
Tulika

Hi Tulika,

I think you are talking about Cairn 260 call. Your SL has been hit.

Cairn has fallen today around 5.76% in cash segment. With crude going down it doesn't seem a good option to hold on to this counter.

Technically, currently this counter looks slightly weak.

Regards

 

[trillian]

Dear Ghosh,

How about my calulation in previous reply is it correct ?

Please comment on it?

Thanks.

 

[ghosh_ak34]

Dear Ghosh

Here i am posting wt i analysed @ NIFTY today during mkt hours.

Today nifty

opened @ 4358.85
4386 @ 10.30 +27.35 from open
4370 @ 10.45 +12 from open
4426 @ 12.30 +56 from 10.45 here i entered 4200 CE @ 274 with SL of 192
4523 @ 3.00 +97 from 12.30 As per ur strategy i can square off here or hold it for next day and hedge the position by buying put at S1.

Ok here comes the result if i square off my position means i will get around 4400 profit for 1 lot i.e the cmp of 4200 CE @ 3.00 P.M was around 362. So 362 - 274 = 88 and per lot i.e 88*50 = 4400. And if i hedge my position means I should hold 4200 CE @ CMP and need to buy 4200 PE @ Cmp, whereas i should have bought 4200 PE @ 42.9 to hedge my hedge my 4200 CE.

So i have done for today. Please tell me where I am wrong?

And also i have doubt in Exit. whether I need to wait for 3 o clock or i can close my postion before? so please explain that part.


Note:

So what i did here was i didn't entered the trade until i get an confirmation i.e +20 or -20 is it correct or we want to use some other strategy?

what i learned here was we want to back test 10.30 with 10.45. Ghosh is it correct?

please let me know.

Thanks

Dear Trillian,

Thanks to you for posting todays paper trade. You have bought call and put exactly as per strategy. No need to enter into trade unless trend is up or down by 20pts. from the base point as per strategy posted in 1st post.

As far as exit is concerned there are two ways:

Book profit when your target is met or hold your profit making option with trailing SL=10% from the CMP(Current Market Price). For an exit there is no need to wait till 3:00 PM you can exit earlier too!

10:45 AM price has to be compared with the opening price not 10:30 AM price.

Regards

 

[trillian]

Dear Trillian,

Thanks to you for posting todays paper trade. You have bought call and put exactly as per strategy. No need to enter into trade unless trend is up or down by 20pts. from the base point as per strategy posted in 1st post.

As far as exit is concerned there are two ways:

Book profit when your target is met or hold your profit making option with trailing SL=10% from the CMP(Current Market Price). For an exit there is no need to wait till 3:00 PM you can exit earlier too!

10:45 AM price has to be compared with the opening price not 10:30 AM price.

Regards

So as i said here after i will back test 10.30 with 10.45 and then i will enter the trade. because today i didn't got confirmation until 12 o clock. i have entered after 12.

And as you said if i hold my profit making option then i want to change my previous SL 192 to 247 right?

 

[ghosh_ak34]

So as i said here after i will back test 10.30 with 10.45 and then i will enter the trade. because today i didn't got confirmation until 12 o clock. i have entered after 12.

And as you said if i hold my profit making option then i want to change my previous SL 192 to 247 right?

Dear Trillian,

Yes, you are correct. As said earlier, we will not enter till trend is confirmed.

Trailing SL=10% will be 10% of the current market price of the call. If current market price of 355 then, trailing SL=355-35.5= 319.5

Regards

 

[trillian]

Dear Trillian,

Yes, you are correct. As said earlier, we will not enter till trend is confirmed.

Trailing SL=10% will be 10% of the current market price of the call. If current market price of 355 then, trailing SL=355-35.5= 319.5

Regards

Ok now i understood. SL 10% should not be on the price which we bought it should be in CMP. ok i got it.

If we exited today can we enter in the same R1 and S1 till this week?

 

[ghosh_ak34]

Ok now i understood. SL 10% should not be on the price which we bought it should be in CMP. ok i got it.

If we exited today can we enter in the same R1 and S1 till this week?

Dear Trillian,

Yes, we can enter again at this week's R1 and S1 till the week ends.

Regards

 

[trillian]

Ok ghosh,

Today what i did was i have created an spreadsheet with your strategy. I will do all my trade in that and will post it here on 20sep as you said we want to close all our postion.

With loss and profit on daily basis.

Thank you.