Option trading strategies that i hope will work.

[theekar]

hello detrich,
thanks for ur valuable posts, as i'm beginner it is useful to me.
cont.. ur good work.

 

[detrich]

Part IV
Dear Rajat,

This is my last post on my reason for feeling nifty is heading southbound, I hope by now you have at least understood half of the things I said in my previous post.

2) 011008 NSE chart-ADX- I always use ADX to check on the strength of the trend. What I saw was that after the brief rise there is a fall in the ADX value. What this means that there is a pause in the trend (Confirmed here by the MACD, SAR and Moving Average signals). So I did some more analyzing and found that a similar pattern had emerged during 09th June to 18th June. After touching highs for month of early May. Nifty started to go down towards the end of May on many concerns into June for a brief period in June there was a respite in this trend Between 11th June to 18th June. For that week nifty went up from 4300 to 4500+ region. But this was not a change in trend which was confirmed by the MACD (which was in sell phase). At that time 4350 was touted as the bottom of the market. During this price formation you can see the rise was preceded by moving average lagging behind the main price. The only dissimilarity is SAR but that could easily discounted because both the MACD and MA’s are in sell mode. The random wave from 11th June to 18th June was followed by a sharp fall for next five consecutive falls. The fall was to the tune of 600pts(High of 4600 to low of 4000). When you compare This phase to current one you will find that it is similarly poised:d or that is what I see. I just hope it is so. What is really going here for me is that the signals are on the right side where I want them as for 3500 being mark is because Next real support is 3545. So I will be watching out for them:d.


With my fingers crossed I think I have completely explained my views and reasons waiting for Friday. I just hope it will go my way and no Rajat I do not think I have taken a gamble I will rather call it calculated risk. Just hope I will be able to pull it. Thanks a lot for your patience and encouragement. I just hope you will find this useful. See you in Friday. Good Luck.

P.S. I have repeated thousands time but I am saying it again. People please free to ask me anything that you did not understand here. I just hope you will find this helpful and do give your kind views.

 

[detrich]

hello detrich,
thanks for ur valuable posts, as i'm beginner it is useful to me.
cont.. ur good work.

Dear Theekar,

the pleasure is all mine anytime you feel like asking anything just feel free to do so. THank you for reading my posts. I just hope you will keep finding them helpful.

 

[coolboy007]

Part IV
Dear Rajat,

This is my last post on my reason for feeling nifty is heading southbound, I hope by now you have at least understood half of the things I said in my previous post.

2) 011008 NSE chart-ADX- I always use ADX to check on the strength of the trend. What I saw was that after the brief rise there is a fall in the ADX value. What this means that there is a pause in the trend (Confirmed here by the MACD, SAR and Moving Average signals). So I did some more analyzing and found that a similar pattern had emerged during 09th June to 18th June. After touching highs for month of early May. Nifty started to go down towards the end of May on many concerns into June for a brief period in June there was a respite in this trend Between 11th June to 18th June. For that week nifty went up from 4300 to 4500+ region. But this was not a change in trend which was confirmed by the MACD (which was in sell phase). At that time 4350 was touted as the bottom of the market. During this price formation you can see the rise was preceded by moving average lagging behind the main price. The only dissimilarity is SAR but that could easily discounted because both the MACD and MAs are in sell mode. The random wave from 11th June to 18th June was followed by a sharp fall for next five consecutive falls. The fall was to the tune of 600pts(High of 4600 to low of 4000). When you compare This phase to current one you will find that it is similarly poised:d or that is what I see. I just hope it is so. What is really going here for me is that the signals are on the right side where I want them as for 3500 being mark is because Next real support is 3545. So I will be watching out for them:d.


With my fingers crossed I think I have completely explained my views and reasons waiting for Friday. I just hope it will go my way and no Rajat I do not think I have taken a gamble I will rather call it calculated risk. Just hope I will be able to pull it. Thanks a lot for your patience and encouragement. I just hope you will find this useful. See you in Friday. Good Luck.

P.S. I have repeated thousands time but I am saying it again. People please free to ask me anything that you did not understand here. I just hope you will find this helpful and do give your kind views.

Thanks a lot for the explanation and yes i think thats a calculated risk. i cant do so much analysis as i have to cope up with studies also and i dont want to compromise that. So u expect a sharp fall.

Thanks

 

[detrich]

My current portfolio is looking like this
Buy PE-4000-181 (Entry-185)Well I really am not worried here just wondering wether I should have sold this in the first place on the second day when I was making profit)
Sold CE-4100-104 (Rs.128)(Beyond my control)
CA-27.50 Ashok Leyland @ 1.30(Entry-1.20)(Something which I will always call gut feeling but here too I think I should have selled this yesterday I just hope tommorow I will get a chance to do so in profit anyways I am going to exit tommorow with a stop loss of 1.10)

three hypothetical positions
Acc-Buy @ Rs.629.40(in cash)(Entry-597)( With a price target of 872 and stop loss of 553, I think I am safe here)
CA-1410 SBI OCT 29-125 (Entry-92) ( Man I just wish I had purchased this one in real time)
Pa- 60 Allahabad Bank @ 1.65(Entry-1.6) (Well Just say I am waiting for something)(Did not purchase because of the illiquidity in this series.)

I just hope somehow out of this I will make profit(Praveenji your inputs needed).

 

[detrich]

Thanks a lot for the explanation and yes i think thats a calculated risk. i cant do so much analysis as i have to cope up with studies also and i dont want to compromise that. So u expect a sharp fall.

Thanks

Dear coolboy,

good luck with your studies and yes study hard, now get offline kid and thank you for encouragement. Thanks a lot.

 

[detrich]

Currently I am going offline, Incase of course I find something good I will surface back. Thank you people for reading my posts.

 

[detrich]

sir i have ril 1800 put n 1950 call . this is a good treading pattern or not pls tall me how can i make profit by heag in ril . pls thanks 4 ur reply in advance

Dear tomdickparry,

I do not know what your entry points were for the poistions so I do not wether I do not know whether you are in profit or not. But one thing is for sure that you are expecting market to go up or Reliance in particular and your best chance to make profit is more when markets go up rather than other way round.I hope this is the reason. Now time to give you the levels to watch out for. I personally feel that since Reliance and Nifty go hand to hand as I had earlier said. So since I am bearish on Nifty then I am bearish on reliance too. But I will just give you points to make refrences.

Downside -1887(It is very important level because once these is breached the next level would be 1796) So my advice will be watch out for these level in Intraday if it is broken then exit the CA-1950 and keep PA-1800)
upside- 1970(Now here is an important mark according to me currently this is the upperside to reliance currently, but if this is broken then go for call ITM's.(Keep the CA-1950 and exit the PA-1800 @ Rs.30something at that time)

Other resistance and support points are
1928,1932,1948


But currently I think you should take exit out of the call side once the price reach 1970 levels and take an ITM put when it reaches that Level. I just hope you find this useful.
and yes next time if you call me sir or thank me I will stop posting bro. and no thank you's. In fact I am thankful and grateful that you are giving your time and reading my posts. I have already writte a post on reliance for reference you can check that one too it is on page 4 post no32.

 

[coolboy007]

Detrich

I have made a strategy. 2moro i will sq off my straddle and 4500CE 2 lots at a loss of 2k and am thinking of buying 4200CE and 3800PE.
Oracle option shows me that i wud be most benfitted in buying the 3800PE and 4200 CE taking into wednesday closing prices.

Frnd plz tell me , if 2moro i use my this strategy should i buy 2PE 1CE or have 1PE 1CE. Bailout if happens cn give a temporary relief rally then we cn catch the PE at lowwer price. Think of adding the other PE lot on monday after things are cleared. Wat do u suggets??

 

[detrich]

Detrich

I have made a strategy. 2moro i will sq off my straddle and 4500CE 2 lots at a loss of 2k and am thinking of buying 4200CE and 3800PE.
Oracle option shows me that i wud be most benfitted in buying the 3800PE and 4200 CE taking into wednesday closing prices.

Frnd plz tell me , if 2moro i use my this strategy should i buy 2PE 1CE or have 1PE 1CE. Bailout if happens cn give a temporary relief rally then we cn catch the PE at lowwer price. Think of adding the other PE lot on monday after things are cleared. Wat do u suggets??

Dear Rajat,

I think your strategy of PE-3800 and CE-4200 is really good. But please do not buy them at a time. Wait for the market to make a move. If you want to buy a call do it if market hold on to the 3800-mark and buy a put at around when it is near 4000. Remember to exit them before the end of the day. Please do not go for spread according to me unless you are sure that market is going to be volatile. So be careful and yes 1PE-1CE looks a host more better. If you can keep an eye on this thread during trading hour. I will be more useful at that time then now.