Option Buy Recomendations

[vpvramesh]

Dear Mr. Ghosh

Thank You Very Much for your reply...

As i Understand we should take any action when +20 or -20... Is it Right?

Thanks

 

[ghosh_ak34]

Dear Mr. Ghosh

Thank You Very Much for your reply...

As i Understand we should take any action when +20 or -20... Is it Right?

Thanks

Yes, your understanding is correct.

Regards

 

[vpvramesh]

Hi Mr . Gosh..

Thanks You for reply..

I have one more doubt..

Have to take SP CNX NIFTY point or February Fut Points for calculating..? because there is some different values at a time like 5 to 10 points are different.

Thanks

 

[ghosh_ak34]

Hi Mr . Gosh..

Thanks You for reply..

I have one more doubt..

Have to take SP CNX NIFTY point or February Fut Points for calculating..? because there is some different values at a time like 5 to 10 points are different.

Thanks

Dear vpvramesh,

We take Nifty Spot price to calculate R1 and S1 for options trading.

My sirname is Ghosh not Gosh.

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 today are as under:

Resistence at 4900
Support at 4842

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

 

[scplindia]

expect market to close around 4840 today based on options put call data, what do you suggest now

 

[venktn]

Dear Ghosh,

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


I would like to know what 2P stands for in the above formula. Is it 2xP? Please clarify.

Bhaskar

 

[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 today are as under:

Resistence at 4940
Support at 4770

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

 

[abigbull]

d just made one trade during the Budget day and would like to know ur thoughts on it .

4700 PUT Buy at Rs 80 10.50 am Nifty at 4886
4900 CALL Buy at Rs 140 10.50 am Nifty at 4886

Now when the market started to rise at around 4965 my CALL was priced at 155
and PUT at 40 so got 50% loss in my PUT value and only 15 pt increase when my call was ITM .

and finally when the day ended the value of my positions are as follows .
BUY call 4900 at 140
Buy Put 4700 at 40 .
so i am in loss ? Is this the correct way of options working and also would like to know if my approach was right for this Budget day ?

Thanks in advance

 

[ghosh_ak34]

d just made one trade during the Budget day and would like to know ur thoughts on it .

4700 PUT Buy at Rs 80 10.50 am Nifty at 4886
4900 CALL Buy at Rs 140 10.50 am Nifty at 4886

Now when the market started to rise at around 4965 my CALL was priced at 155
and PUT at 40 so got 50% loss in my PUT value and only 15 pt increase when my call was ITM .

and finally when the day ended the value of my positions are as follows .
BUY call 4900 at 140
Buy Put 4700 at 40 .
so i am in loss ? Is this the correct way of options working and also would like to know if my approach was right for this Budget day ?

Thanks in advance

Dear Abigbull,

Budget was likely to be a non-event this time. Not much was expected out of it either way. So, buying a strange was not a good bet.

Strangle is good when steep up or down trend is expected.

No worries, this way you learnt something.

Regards