Option Buy Recomendations

[ghosh_ak34]

Mr.Ghosh,

Its really a good one... have to appreciate you...but can you please study the market and advice traderji community about the best buy stocks in the comming weeks..i think it will be much useful.. if anyone knows the best site were we can track prices of booming stock please do let all know about the same.

Dear Jjeniljohntj,

Currently, I am focusing on Nifty options till market conditions improve So, I do not think its wise to trade in Nifty stock options. Yeah! regarding best buy stocks I want to start a new thread if time permits.

You can watch the most gainers/loosers in nseindia site, no idea about a site which tracks them.

Regards

 

[arghali]

Dear Sir,

Any option call for the october series?? Only for index option.

 

[rahul1983]

Ghos Babu ek dout hai

what do you think about call writting

and how about writting 3800 C and 4500 P ( 391 + 415 ) in premium ???

 

[ghosh_ak34]

Ghos Babu ek dout hai

what do you think about call writting

and how about writting 3800 C and 4500 P ( 391 + 415 ) in premium ???

Hi Rahul,

Yes, you can do call writing. But do not do it together. First write the 4500 PE if trend is up and then, write 3800 CA when trend is down. And offcourse the cost of both should be equal or nearly same.

But remember writing options is always risky so u need to monitor them and keep on adjusting your positions accordingly. Better keep the duration short and square off both at the same time when in profit.

If SL=30% on any leg hits, square off both positions or buy the corresponding option to reduce losses. See my 1st post for this strategy.

Regards

 

[ghosh_ak34]

Dear Sir,

Any option call for the october series?? Only for index option.

Dear Arghali,

Please read the 1st post of this thread. I have given one strategy to trade in Nifty options.

Regards

 

[VJAY]

Ghosh sir,
Today I bought PE @ 325 at 10.30 and CE @339.95 at 3.55 for hedging.Please give what can I do tommarrow.if trend is up can I square 1 of them as per trend.If so can I wait for 10.30.Please larify.
Regards
VJAY

 

[ghosh_ak34]

Ghosh sir,
Today I bought PE @ 325 at 10.30 and CE @339.95 at 3.55 for hedging.Please give what can I do tommarrow.if trend is up can I square 1 of them as per trend.If so can I wait for 10.30.Please larify.
Regards
VJAY

Dear Vijay,

Yes, at opening square off the one which is in loss and hold the profit making one with trailing SL =10%.

Or you can also square off both at the same time.

And resume trade as per strategy posted in 1st post of this thread.

Regards

 

[vasanth_ece]

Dear Vijay,

Yes, at opening square off the one which is in loss and hold the profit making one with trailing SL =10%.

Or you can also square off both at the same time.

And resume trade as per strategy posted in 1st post of this thread.

Regards

Hi Ghosh,

Does this mean square off without the target is achieved?I think this kind of Market Scenario achieving 40-50% Profit is bit difficult,since market moves one day up and next day down.

Reg
Vasanth

 

[ghosh_ak34]

Hi Ghosh,

Does this mean square off without the target is achieved?I think this kind of Market Scenario achieving 40-50% Profit is bit difficult,since market moves one day up and next day down.

Reg
Vasanth

Dear Vasanth,

No, I haven't meant that. Square off both only when target for one is met next day as you are holding equal no. of calls and put.

I also stated that you can hold on to profit making options with trailing SL=10% and exit the loss making one if SL for that is hit. This startegy is always preferred if hedging is 50% of the price of the positions taken.

I was replying to his specific query where he is having equal no. of calls and puts which he is holding. Please do not jump into such conclusions as it creats unnecessary confusions.

Regards

 

[vasanth_ece]

Dear Vasanth,

No, I haven't meant that. Square off both only when target for one is met next day as you are holding equal no. of calls and put.

I also stated that you can hold on to profit making options with trailing SL=10% and exit the loss making one if SL for that is hit. This startegy is always preferred if hedging is 50% of the price of the positions taken.

I was replying to his specific query where he is having equal no. of calls and puts which he is holding. Please do not jump into such conclusions as it creats unnecessary confusions.

Regards

Hi Ghosh,

I completely understood the concept.Still have a query?

Assume Nifty Spot Price today @10 AM is: 4200.Also lets assume Nifty Oscillates between 4100 to 4300 for the next 15 days.

Suppose i bought a put option pe 4400 @ 390 (as per trend) @10.30 AM and ce3900 @350 at 3.00 PM (for hedging) .

My Question is what if the target is not achieved for the next 15 days?Since Options decays with time,there will be an priority to hit the stop loss (assuming the market swing one day after another) first compared to achieving the target.

Pls Note:

I think this may not occur around 75%.But,if so,there may be possibility that we may lost the money even after hedging, right?.This is just a query to you and hope i am not disturbing the group.

Please clarify.

Reg
Vasanth