Option Buy Recomendations

[ghosh_ak34]

Dear Sir,

Is there is hedge strategy for range bound market in your basket?

Dear Spot,

Write options at the extreme of ranges. Write call at (upper boundary + 200) of the range and write put at (lower bounder -200) of the range.

You can use last weeks data to calculate the range using the pivot calculations as stated in 1st post of this thread.

Regards

 

[ghosh_ak34]

Re: What a market today was.....

Hi Sohan,

I think market is technically positioned to go upward for sometime now.Some of the technical indicators suggest so.But a correction could happen any day.Our Ghosh sir could explain it in a better way.


Kausik

Dear ka2931,

Market is poised to go down, mini budget could delay it to some extent if it announces tax cut or any other stimulous.

If you go by tecnicals you will see that ---
Nifty Put build up at 2800 strike has reached 180k contracts, the highest ever at any strike. As per our earlier experience, whenever Nifty Put OI reached a new high record, the level has been breached and Nifty lost 6 to 10% over the next 10-15 trading sessions.

Regards

 

[ka2931]

Re: What a market today was.....

Dear ka2931,

Market is poised to go down, mini budget could delay it to some extent if it announces tax cut or any other stimulous.

If you go by tecnicals you will see that ---
Nifty Put build up at 2800 strike has reached 180k contracts, the highest ever at any strike. As per our earlier experience, whenever Nifty Put OI reached a new high record, the level has been breached and Nifty lost 6 to 10% over the next 10-15 trading sessions.

Regards

Thank you sir for giving the insight of technical.Sir,I'm learning the basics of TA and your any help really enrich me.

kausik

 

[gsreenivasareddy]

Re: What a market today was.....

I am new to Option,When a strike is having more OI it means that it will act as great support,i.e. here Nifty won't fall below 2800 na, Please clarify me If I am wrong.
Happy Investing Day.

Dear ka2931,

Market is poised to go down, mini budget could delay it to some extent if it announces tax cut or any other stimulous.

If you go by tecnicals you will see that ---
Nifty Put build up at 2800 strike has reached 180k contracts, the highest ever at any strike. As per our earlier experience, whenever Nifty Put OI reached a new high record, the level has been breached and Nifty lost 6 to 10% over the next 10-15 trading sessions.

Regards

 

[spot]

Thanks for reply.

Will you suggest any strategy, if one don't have to give Margin which required for writing Call/Put.

 

[ghosh_ak34]

Re: What a market today was.....

I am new to Option,When a strike is having more OI it means that it will act as great support,i.e. here Nifty won't fall below 2800 na, Please clarify me If I am wrong.
Happy Investing Day.

Dear
gsreenivasareddy,

Please its for put not for call. had it been call then, that strike could have acted as support.

Regards

 

[ghosh_ak34]

Thanks for reply.

Will you suggest any strategy, if one don't have to give Margin which required for writing Call/Put.

Dear Spot,

Please refer to 1st post of this strategy for such a strategy which doesn't require margins as we buy options.

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 Monday are as under:

Resistence at 2960
Support at 2909

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

 

[gsreenivasareddy]

Re: What a market today was.....

Thanks a lot for the clarification

Thnks,
Sreenivasa Reddy.

Dear
gsreenivasareddy,

Please its for put not for call. had it been call then, that strike could have acted as support.

Regards

 

[ghosh_ak34]

Hi,

I have one very basic question.

I hope almost all members of this thread can answer this question.

Suppose i get S1= 2785 and R1= 2925

Now as per strategy, when some condition is satisfies, we should buy Call at S1 or Buy PUT ar R1.

What is this Buy Call at R1. and Buy PUT at S1

If market is currently trading at 2850.
As per some condition, i want to Buy Call at S1. Now what Call should i buy.

Please please reply to this as i tried browsing many pages of this thread but i am not able to understand this little simple thing.

Thanks,
Sohan ( http://intraday.weebly.com )

Dear Sohan,

R1 and S1 are the strike prices calculated as nearest 100 of calculated R1 and S1. You need to buy calls at strike price S1 and puts at strike price R1 as per trend check posted in the 1st post.

Please take some time in reading prevous posts to get the answers starting from 40th post and look for queries from trillian.

Regards