Option Buy Recomendations

[optionstrader]

Hi Ghosh Sir,

Kindly guide ,shall i enter niftybees at 290, or shall i wait for the levels that you have guided, that is, near 271.

Kindly also guide if ant SL has to be maintained.

Awaiting your response,

Thanks & Regards,
Optionstrader

 

[ghosh_ak34]

Hi Ghosh Sir,

Kindly guide ,shall i enter niftybees at 290, or shall i wait for the levels that you have guided, that is, near 271.

Kindly also guide if ant SL has to be maintained.

Awaiting your response,

Thanks & Regards,
Optionstrader

Dear Optiontrader,

Though some steam is still left in Niftybees, but would advice a wait to re-enter around 271.

Regards

 

[ghosh_ak34]

Dear Friends,

No fiscal stimulous package by the govt. till next govt. formation. This may effect market from rising further. Lets watch and act accordingly.

Regards

 

[issacj]

A very good one, Ghosh..Thanks a lot.

But i have one doubt, what will you do for a day if the movement of nifty is like, for e.g at 10.30 am , the nifty spot price difference to the opening is >= 20, then the difference between the 12.30pm price and the 10.30 price is <=20, and finally the difference of 3.30 to 12.30 price is >= 20. What will be your holdings at the end of the day?

 

[ghosh_ak34]

A very good one, Ghosh..Thanks a lot.

But i have one doubt, what will you do for a day if the movement of nifty is like, for e.g at 10.30 am , the nifty spot price difference to the opening is >= 20, then the difference between the 12.30pm price and the 10.30 price is <=20, and finally the difference of 3.30 to 12.30 price is >= 20. What will be your holdings at the end of the day?

Dear issacj,

You need to trade as per trend, buy calls at S1 when Nifty is up 20pts at 10:30 AM from the opening price at 10:00AM and use trailing SL =10% from CMP and hold. If Nifty goes down by 20pts by 12:30PM w.r.t. price at 10:30 AM, then obviously the trailing SL of call bought at 10:30 will get hit so exit from it and buy puts at S1 and hold with trailing SL=10% from CMP. And again if at 3:00 PM / 3:15 PM not 3:30PM. the price is up 20pts, then you can either buy calls at S1 to hedge your position or exit from the previous put bought at 12:30PM. Its reco. not to hold any naked options. Always hedge it before you call it a day.

And suppose you are holding the position for next day, offcourse after hedging then, next day either square off both or hold on to profit making option and exit from loss making option. This all depends on once risk appetite.

Regards

 

[SriVijay]

Ghosh sir
Even i am following your thread for months , i cant makeup one thing...buy calls at s1 ..buy puts at R1....
1. What stike price we want to buy at s1...and R1
2. Whether we want to buy exactly at s1...if so cmp ranges between s1 and r1 ..and doesnt touches either s1 or r1...we will not enter the trade...am i right..

Kindly consider my querry...though it is in premature stage....

Vijayakumar

 

[ghosh_ak34]

Ghosh sir
Even i am following your thread for months , i cant makeup one thing...buy calls at s1 ..buy puts at R1....
1. What stike price we want to buy at s1...and R1
2. Whether we want to buy exactly at s1...if so cmp ranges between s1 and r1 ..and doesnt touches either s1 or r1...we will not enter the trade...am i right..

Kindly consider my querry...though it is in premature stage....

Vijayakumar

Dear Vijayakumar,

I think you need to understand options. Please refer to 888options dot com or traderji to understand options. I have given the formula to calculate R1 and S1 in the 1st post of this thread as well. Pre-requiste to understand the strategy posted in 1st post of this thread is knowledge of options.

As stated earlier, for the week starting Mon-Fri R1 = 2900 and S1 = 2800. 2900 and 2800 are strike price for Nifty options. You need to buy calls and puts as strategy posted in 1st post of this thread.

Will reco. to understand options first then, re-read the 1st post of this thread again.

Regards

 

[sanego]

Thanks,

But unfortunately Today I was not able to exit 2900 CE at 90. Its 68 now.
Can you suggest what can be done ahead with this trade.

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for Monday are as under:

Resistence at 2800
Support at 2677

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend check strategy posted in 1st post of this thread.

Regards

 

[ghosh_ak34]

Thanks,

But unfortunately Today I was not able to exit 2900 CE at 90. Its 68 now.
Can you suggest what can be done ahead with this trade.

You should have exited from it. Will reco. an exit.
Regards