Option Buy Recomendations

[pkamalesh]

Dear Vasanth,

Please read the 1st post of this thread, until we get -20pts or +20 pts as per strategy posted in 1st post we will not trade.

Its possible that somedays we don't get any trend so we will not trade. Today we got the trend at 3:00 PM, down by more than 20pts from price at 12:00/12:30 PM. So one can buy put at R1 (4500) and hedge the same by buying a call at S1(4200) before EOD.

As far as sideways or bullish or bearish trend is concerned one needs to refer to charts for TA. One days move doesn't decide that trend is bullish, bearish or sideways. According to my strategy, the trend should remain in bullish or bearish mode for atleast 15 days in a row for it be considered bullish or bearish. If for last 15days its not showing any trend either up or down in a row, it means the trend is sideways.

Regards

Dear ghosh sir...im a great admirer of TA irrespective of where i get it from..i do a lot of Ta but i need to get some help from u...can u gimme some good site(paid or free) from where u do ur analysis..id be very thankful to u if u can help me out with this...and sir its only after i started reading this great post that i knew that making money in options is much much easier than in those quities....thanks once again..

kamalesh

 

[ghosh_ak34]

Dear ghosh,

We should not trade when Nifty spot (i.e todays 10.30 - 12.30) is exactly 20points right?

It should be above 20 or below 20?

Dear Trillian,

You are correct.

Regards

 

[dhinakar113]

Dear Ghosh,

Why we should'nt buy Calls at R1 and Puts at S1? Any specific reason? I think these are relatively cheaper bets. Pl enlighten me.

Regards,
Dhinakar

 

[ghosh_ak34]

Dear Ghosh,

Why we should'nt buy Calls at R1 and Puts at S1? Any specific reason? I think these are relatively cheaper bets. Pl enlighten me.

Regards,
Dhinakar

Dear Dhinakar113,

You can buy calls at R1 or puts at S1 if you are very sure of Nifty going up passing R1 or going down falling below S1 respectively.
I have tested this strategy (posted in 1st post of this thread) positive, by buying calls at S1 and puts at R1, so I recommend the same.

Please paper trade the strategy for 3 months and start real trade only when this strategy gives profits 3 months in a row. You can also test this strategy by putting small money.

I request you to test it yourself first, and do not go by what others have said about this strategy. Please go through the 1st post of this thread to understand the strategy.

Regards

 

[dhinakar113]

Dear Ghosh,

Thanks for your guidance. I will do that.

Dhinakar

 

[nandasn]

Dear Mr. Ghosh,
I am new to this thread. I need some clarifications as follows:

1. S1 is 4280 cosequently we should buy CE 4300 at S1 which rounded off to 100 closer to 4280 or 4200 as suggested level for this week in your thread.

2. Today I bought CE 4300 @ 272/50 - 1 lot at 10:35 am and bought PE 4500 @ 118/-
at 3:15 pm.

Kindly tell me if this was correct and what should be done with the open positions.

Regards,

nanda

 

[vvvv]

is buying the 4300 put of nifty fut at 50/- advisable now???

 

[ghosh_ak34]

Dear Mr. Ghosh,
I am new to this thread. I need some clarifications as follows:

1. S1 is 4280 cosequently we should buy CE 4300 at S1 which rounded off to 100 closer to 4280 or 4200 as suggested level for this week in your thread.

2. Today I bought CE 4300 @ 272/50 - 1 lot at 10:35 am and bought PE 4500 @ 118/-
at 3:15 pm.

Kindly tell me if this was correct and what should be done with the open positions.

Regards,

nanda

Dear Nanda,

S1 = 4300 is correct. I went for 4200 as S1 because I was more conservative this week. But normally, we follow round of to nearest 100 only.

You have correctly hedged your positions so,no worries, tomorrow Nifty might open higher, you can book your profit and hold the put with SL=83.

Regards

 

[vasanth_ece]

Hi Ghosh,

I am sorry.Still cant understand.This is the calculations i made,correct me if i am wrong:

Nifty Open:4358.30

Nifty @ 10.30 : 4501.80 (+143 points up from open)

Nifty @ 10.45: 4507.95 (+149 points up from open)

Nifty @ 12.30:4521 (+19.2 points up from 10.30 AM)

Nifty @ 3.00: 4494 (-27 points down from 12.30 AM).

Please tell me if the following criteria will not met using the above calculation:

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

I am seeing here Nifty is >20 points up,compared to Open Price (4358.30) between 10.30 AM (4501.80 (+143)) and 10.45 AM (4507.95 (+149)).

If this is the case,why the trend is not came here itself.How you are saying we got the trend at 3.00 PM.

Second Question,

Today we got the trend at 3:00 PM, down by more than 20pts from price at 12:00/12:30 PM. So one can buy put at R1 (4500) and hedge the same by buying a call at S1(4200) before EOD.

How you are saying that Trend achieved at 3.00 PM,because at 12.30 i saw Nifty 19 points up and 3'o clock it's 27 points down .(as there is no consistency compared to 12.30 AM).

My questions may look stupid,but please clarify.I am confused here and cant able to understood further.

One Final Question,

Is my Nifty Spot Open Price is correct?
Reg
Vasanth

 

[trillian]

Dear Nanda,

S1 = 4300 is correct. I went for 4200 as S1 because I was more conservative this week. But normally, we follow round of to nearest 100 only.

You have correctly hedged your positions so,no worries, tomorrow Nifty might open higher, you can book your profit and hold the put with SL=83.

Regards

Dear ghosh,

S1 is 4200 right? how it will be 4300? can you explain it?