Option Buy Recomendations

[Undertaker]

Hi.. I am new to this forum... Can anybody tell me if we can get Options Calculator and Probability Calculator for Indian markets?

 

[Tanoj]

Friends,

I am holding an option contract "OPT-NIFTY-26-Mar-2009-2600-PE" @ 124 . What strategy I needs to adopt for the same ? I mean can I hold it for 2/3 weeks ??

Kindly advice.

Thanks.

 

[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 tomorrow are as under:

Resistence at 2825
Support at 2740

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]

Friends,

I am holding an option contract "OPT-NIFTY-26-Mar-2009-2600-PE" @ 124 . What strategy I needs to adopt for the same ? I mean can I hold it for 2/3 weeks ??

Kindly advice.

Thanks.

Dear Tanoj,

Will reco. either hold a naked option with a SL say SL=30% from your buy price i.e. 87 (approx.). or hedge your put by buting a call say at 2800.
Regards

 

[ghosh_ak34]

Sir,
I have a small query.
How come R1 & S1 levels change with every morning? I have read your first post and it isnt quite clear there.
I will try to post my query with an example:

Suppose we are trying to find R1 & S1 for Monday,2nd feb. According to my understanding, you would take the High,Low and Close for the week 26Jan-30Jan to arrive at R1 & S1 levels to trade.
So far, so good.

Now, if I am trying to find out the R1 & S1 levels for Tuesday,3rd feb, what would I be doing? Would I take the High,Low, Close for the week 27Jan-2Feb to arrive at R1 & S1 or do I carry on using the levels calculated in the above step.


If you follow the second method, I would seek your advise too.
I was trying to calculate the levels for today,4th Feb. I used the High,Low,Close for the week 28Jan-3rd Feb as follows:

Hugh: 2881(30 Jan)
Low:2752.9(3rd Feb)
Close:2783.9(3rd Feb)

and arrived at the following levels:
P=2805.93
R1=2858.96
S1=2730.86
which are much different than levels posted by you. Kindly advise me, as to where am I going wrong.

Thanks

Dear ankitgarg20,

For Nifty options R1 and S1 for the current week is calulated using last weeks high,low, close and R1 and S1 remains same for the whole curent week starting Mon.-Fri.

Regards

 

[ghosh_ak34]

Ghosh Sir,
Whats are difference in normal day strategy (R1-S1=300>400) and sideway strategy(>300,<400)?
for enter we use same strategy in both normal & sideway days.

Sorry I read 1st post so many times but I have this doubt.
please give some notes about what we do exactly when on normal day and sideway day.
If with examples its helps.
Regards
VJAY

Dear Vijay,

Only difference is that in normal we buy more calls or puts depending on market direction and reco. to hedge with lesser no. of puts or calls. Because in normal startegy direction of the market is either up or down mostly.

In sideways strategy reco. to buy equal no. of calls or puts and hedge with lesser no. of puts or calls. We hedge by EOD with call if we have bought put and vice versa.

Regards

 

[ag_fx]

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 tomorrow are as under:

Resistence at 2825
Support at 2740

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

Dear ankitgarg20,

For Nifty options R1 and S1 for the current week is calulated using last weeks high,low, close and R1 and S1 remains same for the whole curent week starting Mon.-Fri.

Regards

Thanks a lot for the clarification sir..But then what are these resistance and support levels that you post every day? Please shed some light on how are these derived and their usage?


Happy Trading

PS: i would also request you to post your trades at EOD. This would help newbies like me fine tune our trades by matchin it with the master who himself trades it...Having said so, its completely on ur comfort levels...

 

[manoranjan panda]

Ghosh da
I have squared off my sell position in nifty 2500 march put, as recommended by you.

Now I have sold Nifty 2800 March put@180, and to hedge purchased a Nifty 2800 June put@300. My plan is to square off the sell position in March put, whenever Nifty moves up (to around 3000), and to again sell the same Nifty put when market moves down(2700 around). I will not be touching the 2800 June put, it stays as a hedge.

My assumption is that Nifty will be moving between 2700 and 3000 at least 2 times before March end. So I will be "eating premium", and will have the 2800 June put to protect against sudden moves.

Where I need your help:
a) Soundness of the strategy. Can it be done? Is there a better way to hedge, apart from the June 2800 put.
b) Your guidance on when to square off the March put and when to re-enter it.

Thanking you in advance
Manoranjan

 

[ghosh_ak34]

Thanks a lot for the clarification sir..But then what are these resistance and support levels that you post every day? Please shed some light on how are these derived and their usage?


Happy Trading

PS: i would also request you to post your trades at EOD. This would help newbies like me fine tune our trades by matchin it with the master who himself trades it...Having said so, its completely on ur comfort levels...

Dear ankitgarg20,

Please read the daily reisistence and support posting. It clearly says that its only "For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread ". There is no fixed method to find these levels, depends on charts and other market directions. Still to find one definte method.

I do not like posting my trades in public, so would never do so.

Regards

 

[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 tomorrow are as under:

Resistence at 2818
Support at 2725

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