Option Buy Recomendations

[vasanth_ece]

Dear ghosh,

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

Hi Trillion,

Previous Week High=4504
Previous Week Low=4281
Previous week close=4352
P=(4504+4281+4352)/3=4379
S1=2P-H=4254 (~4300)
R1=2P-L=4477 (~4500)

Hope this helps.

Reg
Vasanth

 

[vasanth_ece]

Hi Ghosh/Trillion,

Can you please comment on my question sent before?

Reg
Vasanth

 

[trillian]

Hi Trillion,

Previous Week High=4504
Previous Week Low=4281
Previous week close=4352
P=(4504+4281+4352)/3=4379
S1=2P-H=4254 (~4300)
R1=2P-L=4477 (~4500)

Hope this helps.

Reg
Vasanth

hi vasanth ,

I think your calulation is wrong. Nifty spot weeks high was 4522 not 4504.i.e on 2/9/08.so check your calculation.

Ghosh had given S1 as 4200 for weeks level. So i got confused and asked here.Ghosh can you confirm once again? I think S1 is 4200. Am I right?

Regards

 

[ghosh_ak34]

hi vasanth ,

I think your calulation is wrong. Nifty spot weeks high was 4522 not 4504.i.e on 2/9/08.so check your calculation.

Ghosh had given S1 as 4200 for weeks level. So i got confused and asked here.Ghosh can you confirm once again? I think S1 is 4200. Am I right?

Regards

Dear Trillian/Vasanth,

The Nifty spot is used to calculate the R1 and S1 as below:

WH=4522, WL=4281, WC=4352 so 2WP =8770, R1=4489 ~ 4500, S1=4248~4200 and Diff=241. I took it 4200 (round off 4248 to nearest 100) based on this calculation. Well calculated S1 (4248) is almost at the middle near to 4200 and 4300 as well. So, one could take S1=4300 as well. I preffered S1= 4200 (round off to neares 100) as per strategy posted in 1st post.

Hope this clarified the doubt.

Regards

 

[ghosh_ak34]

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:


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,



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

Dear Vasanth,

The Nifty Spot Open price is incorrect it was 4535 instead.

If you compare the price at 10:30AM(4526) to price at 12:30 AM(4543) then, the trend is 17 (less then, 20) so no trend has emerged. At 3:00 PM (4515) so, trend is down by 28 pts. (less then 20) so trend was -ve. Buy put at R1.

Hope this clears your doubts.

Regards

 

[trillian]

Dear Trillian/Vasanth,

The Nifty spot is used to calculate the R1 and S1 as below:

WH=4522, WL=4281, WC=4352 so 2WP =8770, R1=4489 ~ 4500, S1=4248~4200 and Diff=241. I took it 4200 based on this calculation, as calculated S1 is near to 4200 and 4300 as well. So, one could take S1=4300 as well. I preffered S1= 4200 (round off to neares 100).

Hope this clarified the doubt.

Regards

Dear Ghosh

I have no doubts about this part. I am clear in that and got the same S1 and R1 which you mentioned here.But in few previous replies S1 is mentioned like 4300 so got confused.

so cleared with you.

Thanks.

 

[trillian]

here i will summarize my paper trade as per you strat

today

NS
opens @ 4485.15
10.45 -->4429 ------> -56 from open

So entered @ 4500PE @ 10.45 with CMP i.e 139 with SL 97.3

12.30 -->4449.65 -----> 20.65 from 10.45

I didnt entered any new trade,as i hold my 10.45 4500PE mkt price was 130 i adjusted my SL to 91.

3.00 --> 4475.90 ----->26.25 from 12.30

I didnt know wt to do here so still holding my 4500PE bought @ 139 with SL 91.

I know i am wrong somewhere here.

Ghosh please correct me where I am wrong and what i should be done @ 3.00 today.

Thanks.

 

[ghosh_ak34]

here i will summarize my paper trade as per you strat

today

NS
opens @ 4485.15
10.45 -->4429 ------> -56 from open

So entered @ 4500PE @ 10.45 with CMP i.e 139 with SL 97.3

12.30 -->4449.65 -----> 20.65 from 10.45

I didnt entered any new trade,as i hold my 10.45 4500PE mkt price was 130 i adjusted my SL to 91.

3.00 --> 4475.90 ----->26.25 from 12.30

I didnt know wt to do here so still holding my 4500PE bought @ 139 with SL 91.

I know i am wrong somewhere here.

Ghosh please correct me where I am wrong and what i should be done @ 3.00 today.

Thanks.

Dear Trillian,

NS opens @ 4485.15
10.45 -->4429 ------> -56 from open You bought put at R1=4500 correctly.
12.30 -->4449.65 -----> 20.65 from 10.45 Here you should have bought call at S1=4200 and have held 4500 PE with SL= 97.3, do not adject your SL. This is wrong strategy.

3.00 --> 4475.90 ----->26.25 from 12.30 Here trend is up so you can add more calls or hold on to previously bought call at 12:30.

By EOD you are already hedged.

Regards

 

[vasanth_ece]

Hi Ghosh,

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).

Dear Vasanth,

The Nifty Spot Open price is incorrect it was 4535 instead.

If you compare the price at 10:30AM(4526) to price at 12:30 AM(4543) then, the trend is 17 (less then, 20) so no trend has emerged. At 3:00 PM (4515) so, trend is down by 28 pts. (less then 20) so trend was -ve. Buy put at R1.

Hope this clears your doubts.

Regards

Thanks for your reply.Is the Nifty Spot Price and Open Price are different?.If so,please let me know where i can get the information about Nifty Spot Price?


As for Trillion paper trade yesterday,Nifty Open Price is 4485.15, what is the spot price?

Please clarify.

Reg
Vasanth

 

[trillian]

Hi Ghosh,






Thanks for your reply.Is the Nifty Spot Price and Open Price are different?.If so,please let me know where i can get the information about Nifty Spot Price?


As for Trillion paper trade yesterday,Nifty Open Price is 4485.15, what is the spot price?

Please clarify.

Reg
Vasanth

Hi vasanth.

I think you are confused totally here. Nifty spot price is the current price of nifty which you can get from your trader terminal or nseindia.com and in that the 10.00 A.M price is the open price and moreover nifty spot price is nothing but live nifty price where you will call it as S&P CNX NIFTY . I think now you are clear.

Regards