Option Buy Recomendations

[naharchetan]

Dear Ghosh Sir,

If I am applying the 1st thread strategy on stocks; what is the percentage (R1-S1) that I should keep to trade either as per trend or as per sideways?

Best regards,

Naharchetan

 

[ghosh_ak34]

Dear Ghosh Sir,

If I am applying the 1st thread strategy on stocks; what is the percentage (R1-S1) that I should keep to trade either as per trend or as per sideways?

Best regards,

Naharchetan

Dear naharchetan,

The strategy posted in the 1st post of this thread is for Nifty only.

Regards

 

[naharchetan]

Thanks Mr Ghosh; please can you advise how you arrived at 300-400 range for Nifty?

 

[ghosh_ak34]

Thanks Mr Ghosh; please can you advise how you arrived at 300-400 range for Nifty?

Dear naharchetan,

I have backtested (using 6 months data) and did real trade to test this. When R1 - S1 is between 300, 400, then the trading is quite safe and profitable.

To decide the trend I use the combinatoin of W%14 and ADX = 14 (EOD data) and also other indicators for confirmations such as RSI, candle sticks etc.

Regards

 

[ghosh_ak34]

Dear Friends,

If you are option writer then, you can write Nifty 5100 straddle of current series.

Nifty 5100 call @ 86.40 (CMP)
Nifty 5100 put @ 76.35 (CMP)

Target = Rs 5000 per lot and SL = Rs 2000 per lot.

Above strategy profitable when Nifty is within the range 5,262.75 and 4,937.25.

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:

Resistance at 5140
Support at 5085


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

 

[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:

Resistance at 5250
Support at 5165


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.

Today Nifty is supposed to consolidate.

Regards

 

[ghosh_ak34]

Dear Friends,

Weekly R1 = 5300 and S1 = 5200 and its outside the trading range 300,400. So, would not prefer new option traders to trade with it.

Nifty seems to have selling pressure at upper levels so would reco. to write July series Nifty 5400/5500 calls and hedge the same by writting July series 5000 puts.

Regards

 

[vinustephen]

Dear Mr. Ghosh,

Your daily support and resistance levels are mostly almost on the dot. You said you use TA and other market info to find those levels. When using TA for daily levels what timeframe do you use, daily, hourly? can you elaborate a bit on how you find out these levels.

Vinu

 

[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:

Resistance at 5300
Support at 5222


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