Option Buy Recomendations

[ghosh_ak34]

I think writing call option and buying put option is almost the same, but writing call option is limited profit and unlimited risk, for buying put option limited risk and unlimited profit, so why you do writing call option, instead of buying put option?

I think you need to understand the volatility/market setiments etc to understand the reasons behind. Please refer to my previous threads for an answer to your question.

Regards

 

[surya_sun]

Friends,
I am happy that I bought this. coz booked profit at 130/- and got out. Well I do heed to what aditya14 said about hedges. Thanks anyway for the comments

 

[leena.hawal]

Hi Friend,
You have Posted Very Good Thread Here Thanks For All; Can You Please Solve My Thread I'hv Posted It As "Options Margin Requiement" (In Derivaties Options)

 

[aditya14]

Dear aditya14,

Writting is for mature traders only. Its hedged, 4700 call write is hedged with 4700 put write. For margin req. one needs to talk to ones broker. 1 lot Nifty write margin is same as that of Nifty Future write. And when you hedge then, total margin req. is less. Talk to your broker for details.

For blood pressure patients option write and future is dangerous.

Regarding breakout, have said unless 4755 is broken and Nifty closes above this not to worry much. Moreover, we will maintain SL=Rs 2000/-

Regards

Well I won`t call that a hedge.Also i just wanted to ask the margin requirements so that i can see what`s the ROI %.As ITM writing requires a large amount of margin for 4k.

 

[terminator_123]

Well I won`t call that a hedge.Also i just wanted to ask the margin requirements so that i can see what`s the ROI %.As ITM writing requires a large amount of margin for 4k.

Margin is a little less than writing nifty futures. It comes to around 20k per lot but differs with brokerage.

 

[aditya14]

Margin is a little less than writing nifty futures. It comes to around 20k per lot but differs with brokerage.

Let me rephrase my question i wanted the exact margin which Mr Ghosh paid when he wrote the 4700 straddle.

As of right now 25+K is the requirement so it mustve been higher than 20k when the position was initiated.I just want a rough estimate to better understand this.

 

[ghosh_ak34]

Let me rephrase my question i wanted the exact margin which Mr Ghosh paid when he wrote the 4700 straddle.

As of right now 25+K is the requirement so it mustve been higher than 20k when the position was initiated.I just want a rough estimate to better understand this.

Dear aditya14,

I paid approx. 30K for the straddle write. Will reco. you to refrain from F & O sectoin as its risky and you are having BP problems and is unable to sustain the market pressure.

Regards

 

[aspire_tr]

hi friends,
can anyone give suggestion/experience about so called trading tips services and their fat profit claims.

 

[surya_sun]

Friends,
Presuming that the markets would be in RED for coming wednesday (9/9/09).
What do you think would be right options buy strategy to maximise the profits on the day
ie buy/sell on tuesday 8/9 and sq/off on 9/9 wednesday.
my contemplations are:
if market moves 40~50+ (nifty) on tuesday and 100~120(-) for wednesday, what should be the strategy..
My favourite picks could well be .. 4600/4700/4800 PE/CE. (buy-sell) depending on what position one takes on Nifty FO.
Any suggestions.
rgds/Surya

 

[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 4860
Support at 4730

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