Option Buy Recomendations

[Capital Market 009]

Hi ghosh.

I am an Nri just settle in india last month. we use to have real estate comany abroad. I am just learning about capital markets and open couple of brokerage accounts. Suddenly somebebody introduce me to nifty option trading. I gained 32k for first 2 days trading for couple of hours. suddenly i find myself immersed in 19 lacs taking positions in options as market went down last thursday and friday. I will not waste your time asking strategy as i am totally drown anyway. But is there any right way to do nifty options. Fortrading? For now i will just wait till expiry for market revert back as i know my "breakeven". my expiry is 31st december

Rgds
Capital Market.

 

[ghosh_ak34]

Hi ghosh.

I am an Nri just settle in india last month. we use to have real estate comany abroad. I am just learning about capital markets and open couple of brokerage accounts. Suddenly somebebody introduce me to nifty option trading. I gained 32k for first 2 days trading for couple of hours. suddenly i find myself immersed in 19 lacs taking positions in options as market went down last thursday and friday. I will not waste your time asking strategy as i am totally drown anyway. But is there any right way to do nifty options. Fortrading? For now i will just wait till expiry for market revert back as i know my "breakeven". my expiry is 31st december

Rgds
Capital Market.

Dear Capital Market,

Sorry to learn that you are in big loss.

See there are many standard option strategies around which you can adopt.

I have also stated my own tried and tested strategy in the 1st post of this thread. Which one can also adopt but that too after 3 months of either paper trade or real trade using small amount of money.

Some great trader once said:

Rule 1: A trader should concentrate on protecting their money first
Rule 2: Never forget the 1st rule.

Do not trade without any hedging strategy. Always hedge your positions as chances of SL getting jumped or missed is often high in days of sharp fall.

Whatever, strategy you choose, 1st test it for atleast 3 months and it should give you profit for 3 months in a row. If not tweak it again and re-start your testing.

Have overall SL = 6% of your capital kept aside for trading. Once this SL is met stop trading for atleast 2-3 months and analyze your trades do testing again and re-start if you find it okay!

I hope above helps you.

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 tomorrow are as under:

Resistence at 5032
Support at 4935

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

 

[Capital Market 009]

thanks for your feedback ghosh

to be very specific i have

10k unit 5200 dec call @ 49.67 (average price)
14,000 unit 5100dec call @ 76 (average price)

1500 unit 5100 put dec call @ 111 (average price)
1000 unit 5300 jan call @ 65

Hence almost 19 lakhss tied up.. didnt get chance for last 2 days. What you suggest further. Do you think in these next 5 days even there is remote chances of nifty going at 5100?

Want to liquidate all in next week and need to study further for 3 months as per your advise.. I need to understand that capital market is not realestate

thanks again

capital market

Dear Capital Market,

Sorry to learn that you are in big loss.

See there are many standard option strategies around which you can adopt.

I have also stated my own tried and tested strategy in the 1st post of this thread. Which one can also adopt but that too after 3 months of either paper trade or real trade using small amount of money.

Some great trader once said:

Rule 1: A trader should concentrate on protecting their money first
Rule 2: Never forget the 1st rule.

Do not trade without any hedging strategy. Always hedge your positions as chances of SL getting jumped or missed is often high in days of sharp fall.

Whatever, strategy you choose, 1st test it for atleast 3 months and it should give you profit for 3 months in a row. If not tweak it again and re-start your testing.

Have overall SL = 6% of your capital kept aside for trading. Once this SL is met stop trading for atleast 2-3 months and analyze your trades do testing again and re-start if you find it okay!

I hope above helps you.

Regards

 

[netman]

capital market, I am no expert, but as the current month expiry is coming near, the delta value will decrease, you should strictly follow some STOP LOSS, and start exiting from current month on every up move.

As i say I am no expert but this is what strikes to my mind, from my past loss, you can consult any expert for a better opinion and trade accordingly.

 

[sprintravi75]

sorry friend

my one advise to u is dont invest all your capital at a time. trade safe and wise.


regards

thanks for your feedback ghosh

to be very specific i have

10k unit 5200 dec call @ 49.67 (average price)
14,000 unit 5100dec call @ 76 (average price)

1500 unit 5100 put dec call @ 111 (average price)
1000 unit 5300 jan call @ 65

Hence almost 19 lakhss tied up.. didnt get chance for last 2 days. What you suggest further. Do you think in these next 5 days even there is remote chances of nifty going at 5100?

Want to liquidate all in next week and need to study further for 3 months as per your advise.. I need to understand that capital market is not realestate

thanks again

capital market

 

[ghosh_ak34]

thanks for your feedback ghosh

to be very specific i have

10k unit 5200 dec call @ 49.67 (average price)
14,000 unit 5100dec call @ 76 (average price)

1500 unit 5100 put dec call @ 111 (average price)
1000 unit 5300 jan call @ 65

Hence almost 19 lakhss tied up.. didnt get chance for last 2 days. What you suggest further. Do you think in these next 5 days even there is remote chances of nifty going at 5100?

Want to liquidate all in next week and need to study further for 3 months as per your advise.. I need to understand that capital market is not realestate

thanks again

capital market

Dear Capital market,

You have taken positions against the trend and expiry is also nearing so exit. And as advised by friends do not invest all capital in one go.

Go slow, invest a small amount, test it and see the result for atleast 3 months and then, decide to increase your trading amount a bit. Remember this trading amount should be less than 6% of the total capital you have left aside for trading. Use that amount of money for trading that you could aford to loose.

Regards

 

[susobhan]

Sir

wHigh wLow wClose Pp R1 S1

5156.7 4979.05 4987.7 5041.15 5103.25 4925.6

R1-S1=177.65( sideways trend)
Sir, please check this

Regards
susobhan

 

[susobhan]

Sir,
Good morning, the following details for weekly range
High Low Close Pp R1 S1
5156.7 4979.05 4987.7 5041.15 5103.25 4925.6

R1-S1=177.65(Sideway trend)

Please check this sir.
Regards
Susohan

 

[Capital Market 009]

If you kindly explain "P" in below mention formula.. I think H is weekly high and L is weekly low. Question seems very ackward to pros but jsut as a new comer i like to know

P = (Weeks High + Weeks Low + Weeks Close)/3
S1 = 2P - H
R1 = 2P - L