Option Buy Recomendations

[ghosh_ak34]

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

Dear Sonu,

Good to know that you made some profit in RIL call.

See bull spread is preferred when market is moderately bullish. In this case one needs to buy in money calls and write OTM calls or buy a put at higher strike price. (Ratio atleast 2:1 is preferred.)

You have bought a strangle. Currently Nifty is range bound, so will not prefer bullish spread. Nifty is in broader range so writing Strangle will be preferred.

Regards

 

[abigbull]

You have bought a strangle. Currently Nifty is range bound, so will not prefer bullish spread. Nifty is in broader range so writing Strangle will be preferred.

----- Can anybody suggest if the following is a "Write Strangle "
Sell Call @ 4700 at 35
Sell Put @ 4000 at 25


Here the value of Put @ 4000 is rising ... so will i make a loss in this :-(

 

[praveen taneja]

You have bought a strangle. Currently Nifty is range bound, so will not prefer bullish spread. Nifty is in broader range so writing Strangle will be preferred.

----- Can anybody suggest if the following is a "Write Strangle "
Sell Call @ 4700 at 35
Sell Put @ 4000 at 25


Here the value of Put @ 4000 is rising ... so will i make a loss in this :-(

This is positional bro one goes down other up
if 4000 put rising must b 4700 call going down n time decay will make both zero if nifty remain between them

 

[abigbull]

This is positional bro one goes down other up
if 4000 put rising must b 4700 call going down n time decay will make both zero if nifty remain between them

Thanks Praveen , can u also help with the outlook as today the Nifty moved between 4460 - 4360 so what write call and put can be sold off and what is the trigger price as for 4700 call -Sell i see a trigger price of 4527 in my brokerage site .

 

[praveen taneja]

This is positional bro one goes down other up
if 4000 put rising must b 4700 call going down n time decay will make both zero if nifty remain between them

Thanks Praveen , can u also help with the outlook as today the Nifty moved between 4460 - 4360 so what write call and put can be sold off and what is the trigger price as for 4700 call -Sell i see a trigger price of 4527 in my brokerage site .

For that bro you have to wait for Ghosh sir:thumb:

 

[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 4542
Support at 4373

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

 

[ghosh_ak34]

This is positional bro one goes down other up
if 4000 put rising must b 4700 call going down n time decay will make both zero if nifty remain between them

Thanks Praveen , can u also help with the outlook as today the Nifty moved between 4460 - 4360 so what write call and put can be sold off and what is the trigger price as for 4700 call -Sell i see a trigger price of 4527 in my brokerage site .

Dear Abigbull,

As writely said by Praveen, we write options for positional trading postly. Will reco. to write calls at weekly R1 + 200 i.e. Nifty Aug. 4900 strike price and write puts at weekly S1 -200 i.e. Nifty Aug. 4000 strike price. Ratio is decided as per market out look. If trend is up then, we write more puts and vice versa. Currenly Nifty is in oversold zone so would prefer to wait for a while.

I am unable to understand what you mean by "the trigger price as for 4700 call -Sell i see a trigger price of 4527 in my brokerage site ..."

Regards

 

[VJAY]

Ghosh sir,
Have one querry.Today 10.30/10.45 as per strategy no trading .but at 11.50 nifty break our support point then can we go for short nifty with hedging ATM call.or wait for 12.30/12.45 for next confirmation of strategy to enter the trade?

 

[VJAY]

deleted.......duplicate

 

[ghosh_ak34]

Ghosh sir,
Have one querry.Today 10.30/10.45 as per strategy no trading .but at 11.50 nifty break our support point then can we go for short nifty with hedging ATM call.or wait for 12.30/12.45 for next confirmation of strategy to enter the trade?

Dear VJAY,

We will not initiate any trade in that case and will wait for next interval as per trend check strategy posted in 1st post of this thread.

Regards