Option trading strategies that i hope will work.

[nac]

^

Asif,

I see mods are marching towards your posts...

 

[detrich]

hi guys i am back it looks like a lot of cobweb has gathered on my posts in my brain i do not know where to begin i was looking at nifty charts and thought to myself that this market looked for a certain short spike i even mailed all my friends(i wonder they still want to call me that) it zoomed past 5100 to 5300 aprox i was happy and took my eyes off only to find the index tumble back to 5200 which honestly caught me by surprise but now i have recovered took my charts again and i have made certain errors that i could have avoided. Currently the market trend in intermediate term is trading between 4700 to 5600 and that is where the market has been stuck from september what i found peculian is that the index has not been able to march beyond the previous high of 6200 even after the heady highs of last year and twice it went near to the mark currently i deduce since it is a trading market i will not stick my neck and make any half assed predictions and stick to stocks that are showing good fundamentals

 

[detrich]

currently tata motors is on radar it looks good. I would buy this stock at 384. Reliance inds is looking weak which is also contributing to the slow down will look at it as an intraday play will short sell below 770 at downside with stop loss at 825 good luck trading

 

[detrich]

market has steadied above5400 this means you can hold stocks but do not enter into index options yet because this is still a trading market with bearish influences till 5600 donot initiate anyoptions trade enter cash market with long term outlook

 

[nara]

market has steadied above5400 this means you can hold stocks but do not enter into index options yet because this is still a trading market with bearish influences till 5600 donot initiate anyoptions trade enter cash market with long term outlook

I think the better saying would be have strict stop loss while doing options trading. Where else will you get 40-60% swings in a day???

 

[detrich]

The major concern when entring an option contract is time decay. Let us borrow nifty call option contract of 5400 on 28th feb the premium was Rs172 where as today market is at same level yet you will find that the current premium is Rs.156. So this makes no sense initiating a position sense to start a new position in a trendless market. A retail investor will be well served in trending markets. Where markets are breaching quaterly highs or lows atleast then it makes a sense to risk in options because the potential payoff is high. When dealing in a product which expires worthless 70% of the times stop loss serve limited purpose at best.

 

[detrich]

nifty @ 5475 nice opening keep an eye on the volume

 

[detrich]

it is a nice time to buy a call option of 5400 @ 181

 

[detrich]

Now we wait for market to go above 5500. This is the kind of movement you look for when entering an option contract. This is a budget rally and today's strong opening has confirmed it and one word of caution budget rallies are fickle and can change course any time so beware keep a realistic target. Best of luck people keep pushing the bull

 

[detrich]

nifty 5475 huh......waiting for the 2nd leg of rally