Option Buy Recomendations

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ghosh_ak34

Well-Known Member
Dear Friends,

Following reco. is for Nifty option writers :

(1 lot each)

Write Nifty August 4800 Call (CMP 105)
Write Nifty August 4200 Put (CMP 66.5)
Write Nifty August 4100 Put (CMP 48.1)

with total SL= Rs 2000 and target = Rs 7000 per lot
Total Premium = 210.6

Profitable between 4400 and 4800 levels.

Regards
Dear Friends,

Now, those of you have taken above trade could book partial profit as Nifty is nearing 4400.

CMP for Nifty August 4800 Call = 44.15 (P/L = 60.85 X 50 = 3042.5)
CMP for Nifty August 4200 Put = 52 (P/L = 14.5 X 50 = 725 )
CMP for Nifty August 4100 Put = 33. (P/L = 15.05 X 50 = 752 )

Total Profit = Rs 4520 per lot.

Regards
 
Hi Ghosh Ji

Thank you for starting such a GREAT THREAD ... I need to know about the following startegy

Tomorrw we are going to buy a call of

at support 4525 if it opens Gap up around 4530 or 4540

Nifty Aug 2009 4800 CMP 44.15
Nifty Strike Price 4800 @ 48 or 50 which ever we will get
SL we think should we 38.....

Is it good as per your startegy in first post .....

We have confusion about sideways strategy ... will that only be applicable around 10:30 to 10:45 and 3:00 PM to 3:15 Pls Clarify

Thanks in advance
 

ghosh_ak34

Well-Known Member
Hi Ghosh Ji

Thank you for starting such a GREAT THREAD ... I need to know about the following startegy

Tomorrw we are going to buy a call of

at support 4525 if it opens Gap up around 4530 or 4540

Nifty Aug 2009 4800 CMP 44.15
Nifty Strike Price 4800 @ 48 or 50 which ever we will get
SL we think should we 38.....

Is it good as per your startegy in first post .....

We have confusion about sideways strategy ... will that only be applicable around 10:30 to 10:45 and 3:00 PM to 3:15 Pls Clarify

Thanks in advance
Dear Sonu76,

There are two diferent strategies (a) Nifty Options trading using weekly R1 & S1 and (b) Daily Nifty Future trading with option hedging.

(a) 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.

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.

If R1 - S1 is outside (300,400] then, we trade as per sideways strategy. Means we buy equal no. of calls or puts as per trend check. Means when Nifty is up by 20pts from previous time line then, suppose we buy 1 call at S1 strike price. And if Nifty is down by 20pts from previous time line we 1 put at R1 strike price.

And if R1 - S1 is within (300,400] then we trade as per normal trend check strategy depending on trend, if trend is up means for last 15 days trend is up, then we buy more calls say 2 calls at S1 and when Nifty is down by 20pts then, we buy lesser puts say 1 put.

Do not reco. to trade in current month's options after 20th of the month.

(b) We go long in NF as per trend and hedge our position by buying near money or AT money option.

Once Sup. is broken by 10pts, we go short and we go long once Res. is broken by 10pts.

Trade as per trend so far these sup. and res. hold good, once these broken go short or long as stated above.

To make it simple, trade as per trend when price is between Res. & Supp.
and once Sup. is broken go short and once Res. is broken go long.

But always hedge your position by buying AT or near money option.


Hope this helps.

Regards
 
Last edited:
Dear Ghosh ji ,

Thank you for making me understand ...I will implement as per ur advise

need your advise on the Reliance Ind. Relaince call at Strike 2100 showing good volumes these days . can this be a good buy at 50 or 55...

Pls advise

Thanks & regrds
Sonu
 

ghosh_ak34

Well-Known Member
Dear Ghosh ji ,

Thank you for making me understand ...I will implement as per ur advise

need your advise on the Reliance Ind. Relaince call at Strike 2100 showing good volumes these days . can this be a good buy at 50 or 55...

Pls advise

Thanks & regrds
Sonu
Dear Sonu,

I will not reco. a buy in RIL 2100. See the volume is high as there are more writers than buyers of RIL 2100 call.

Regards
 

ghosh_ak34

Well-Known Member
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 4493
Support at 4345

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 strategy posted in 1st post of this thread.

Regards
 
Dear Ghosh Ji .


I exited as per ur advise from the RIL 2100 CE at 50.50 entered in 42 on last friday

Today I tried to bulid the Bear Spread by taking following position
Still I m in Learning phase. It would be great if you pls advise whether it is correct or It requires modification

Nifty 4400 PE @ 105
Nifty 5000 CE @ 18

If not Pl advise how to buil bear spread whitout shorting with the help of call and Put combination

Thanks & regards for ur help
sonu
 
Even i was looking for a strategy with PUT / CALL combination but i think if the Nifty moves against ur decided trend then u will be at loss ....

Neways does anybody in this forum use any online broking site for options trading ... I want to know if we have any online site with low brokerage ?
 

ghosh_ak34

Well-Known Member
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 4543
Support at 4392

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 strategy posted in 1st post of this thread.

Regards
 
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