Option Buy Recomendations

[VJAY]

Dear chaitanyagoa,

When market is going up with no. of days to expiry is away. Then, one could following startegy:

Buy at money or near money call and write OTM call.

For example:

Buy 2lots Nifty 4900 Call and write 5000 call Nov. series

But if you think up trend but not much steam is left or expiry is nearing. Then, one could go for following strategy:

Write an OTM call near resistence and write an OTM put near support.

For example:

Write Nifty 5200 Call 1 lot and Write Nifty 4600 put 2 lots Nov. series.

Will prefer last one because chances of constant move up is less and I can eeat the premiums.

Regards

Dear ghosh sir,
so...you prefer to write both 5200 call & 4600 put's.....is it both together or wait for market come to near resistance then write call 5200 when market come to support then write 4600 put....please clarify

 

[ghosh_ak34]

Dear ghosh sir,
so...you prefer to write both 5200 call & 4600 put's.....is it both together or wait for market come to near resistance then write call 5200 when market come to support then write 4600 put....please clarify

Dear Vijay,

Trade both simultaneously. Its not future that you need to wait for res. and support. I meant strike price near resistence and support needs to be taken for the option trade.

Regards

 

[ghosh_ak34]

hi..Mr. ghosh

I have caught up with bank nifty8600@201 call now Rs.499 no buyers What to do? help me im worried. why bank nifty has low volumes.

Dear rickyric_ny,

I do not trade in Bank Nifty because of lack of volumes. Talk to your broker and ask for exercise. The cash difference would be credited to your a/c.

Exercise index option is different than stock option exercise. But this is also valid.

Regards

 

[PGDIMES]

Dear rickyric_ny,

I do not trade in Bank Nifty because of lack of volumes. Talk to your broker and ask for exercise. The cash difference would be credited to your a/c.

Exercise index option is different than stock option exercise. But this is also valid.

Regards

Hello AK Ghosh,

As far as I know the Index options are European options and can be exercised only at expiry. Please clear my doubt.Thanks.

 

[optionstrader]

Dear Ghosh Sir,

Thank you so much for your guidance on Reniance Jerwellery.
I have exited at 50.

Ghosh sir, what are your views about reniance jewelery ?
Is it a fundamentally good stock to buy again at lower levels ? At around 42-40 ?

Or can it be a good trading stock, i mean buying at 40-42 andselling at 50 ?

Kindly guide.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

 

[Shravan Reddy]

Hi Ghosh ji,
Sorry for this question.. but pls help me..STOPLOSS..
I have gone through threads which explain this stop loss funda...
But i dnt understand how to use it..to start with i ll tell u my experience with it..
I tried using stoploss on some scrip sometime back..i bought it at 60.
it moved till 66.. in order to protect my profit i placed a stop loss at 65.. it went to 67.. 68.. i changed my stop loss to 66..67. suddenly it moved back..it came to 67.5.. i cahnged my stoploss to 66.. then to 65. As i was looking at something else, it fell below 65 and my order was executed. Then it started moving up and the next week it reached 80 levels. Was this procedure correct. Because of this i missed much of my profit. Please explain STOPLOSS with an example.
I often see ppl say trailing stoploss, tight stoploss.. what do they mean?
I have a 4900CE@33. One of our friends in the forum asked me to hold it with tight stoploss.. how to use stoploss for this? TIA..

 

[PGDIMES]

Hi Ghosh ji,
Sorry for this question.. but pls help me..STOPLOSS..
I have gone through threads which explain this stop loss funda...
But i dnt understand how to use it..to start with i ll tell u my experience with it..
I tried using stoploss on some scrip sometime back..i bought it at 60.
it moved till 66.. in order to protect my profit i placed a stop loss at 65.. it went to 67.. 68.. i changed my stop loss to 66..67. suddenly it moved back..it came to 67.5.. i cahnged my stoploss to 66.. then to 65. As i was looking at something else, it fell below 65 and my order was executed. Then it started moving up and the next week it reached 80 levels. Was this procedure correct. Because of this i missed much of my profit. Please explain STOPLOSS with an example.
I often see ppl say trailing stoploss, tight stoploss.. what do they mean?
I have a 4900CE@33. One of our friends in the forum asked me to hold it with tight stoploss.. how to use stoploss for this? TIA..

Do u use any software to analyse ur trade?

 

[naharchetan]

Dear Gosh sir,

I followed your first thread and it is very informative thanks; as per the thread; I arrived at the following

Week's high (last week) = 4836.2
Week's low (last week) = 4538.5
Week's close (last week) = 4796.15

Then P = 4723

thus R1 = 4908 and S1 = 4611

If the market was in a bullish trend this morning; was I right in buying a Call options of 4600 (2-3 lots) and buying one PUT option of 4900?

Apologies; I just wanted to make sure that I understood the concept correctly

Best regards,

Chetan

 

[naharchetan]

Sorry forgot to mention that the difference between the R1 and S1 here is 297; however assuming it was 300 or above 300 then does the above move hold good?

Chetan

 

[Shravan Reddy]

Do u use any software to analyse ur trade?

nopes.. they are all my own work