Option trading strategies that i hope will work.

[detrich]

[heeellooooooooo

Hello rohit

 

[detrich]

Bro in the mkt see wat is trend n trade accordingly as it is now clear that oct will b in range as all saying between 3800-4200 .I m doing just buy at sppt the res n at res the sppt price call n put n when that sppt or resistence broken think that a stop loss n book loss it is working with me till now.read regularly sunils level n satyajit da,s line baba where are standing.But always remember till march always try to exit on all bounce back n take put n vice versa .thats my view u n others can put theres ,but for god sake dont write selling call n put bcoz that is teasing for the all new bies n persons who dont hav much cash better give ur view on our trade.I m now on two calls of 4500 tgt 35 tomm on gap up if n if any.tomm strategy is mine buying RIL 2100 call n 1800 put at 40 so wherever RIL move 100Rs it will give me profit + one call or put for freeelse is gods wish

Dear Pravinji,

I do not know the entry in would you please provide me with your entry points I would be highly obliged. The reason why I have opened this thread to discuss the practical aspect of options and i do not know why you are still complaining about option writing which is a practice agreed only good for high networth individuals. But you can enter this kind of trade if you have the required Initial margin and minimum margin thereafter( the % vary with respect to period). And do not tell me that it si impossible to write an option in market. as relaince I did my analysis and I have found out that currently it is like most of the nifty stocks in a downtrend and currently it is also near it's support of 1800/1775 level. What is intresting is that 5 day MA and 10-day ma negative crossover took place on 26th september triggering a sell signal and after that currently MACD is looking weak and expect to generate a sell signal in a day or two and the fact that today it closed near 1950/1945 level which is a support level. So I think this stock is currently evenly poised. If it manages to sustain above 1949 then I think there is a little scope for an upmove, but as we know reliance and nifty go hand in hand, so i guess i will be looking to take a put position here(Pity I do not have money). Tommorow's resistance point is 1974(watch put for this mark). So everytime it touches 1974 I will be on put side and yes with a Reliance PA-2000 @Rs.127.50:d. Let us see who makes more.

 

[coolboy007]

dear cool boy 007,

It is always best option to go for when you are uncertain about the market movement. I do not when you entered it so I will refrain from commenting on the position but it was nice move. Today I think you made some profit or atleast some breakeven. This straddle will work for any upmovement in market. Be in this stradle if you think that market has a chance of going up or otherwise if i was in this I would have waited for tommorow morning to see which way market are heading since they are At the money and market looking so so I would say that you take a fresh look at the CE-3900(Yes I have also entered it in the afternoon expecting for a positive or atleast stable first session). When entering market remeber one thing (I do not mean to preach anyone here) always make sure that you are have a primary view on the underlying. Like you would have been better served if you were going to enter at the end of the day if you would have purchased a PE-4000 w.r.t. delta . Because one thing is certain this is a trending market rather than trading market. So a little aggressive approach would be rewarded. But still it is nice move just do not hold this till expiry even if you take a hit on one side.

Thanks for your view on my positions. I got a CE3900 at 180 and PE 3900 at 198. After a move of 70 points my loss is arnd 700 , but it doesnt matter as i knew i wud require atleast 200 points on nifty to get arnd 2k.

I am a little foolish also ,when i was new to options i took deep OTM CE arnd 4500 4600 which were even 300 points away from nifty. But made a lot of money in OTM CE arnd 8k . Now i understand everything i am taking straddle. From next week i wud be back to my usual self and taking OTM CE reason being cheap prem and naked shorts or long. We have one month to go and mkts move a big range so some time every1s options will fetch them right amt.

Also in the last minutes i took 2lots 4500 CE at 22. Trgt is 2k frm it. Do u think we cn sustain above 4100 every1s saying upside capped at 4100.
What r ur views??

 

[detrich]

Dear cool boy 007,

First of all as I had said earlier I feel that the upside is at 4000(a very highly unlikely 35% chance) and as I had said earlier that I am really bearish for this month the reason I have metioned already the range I see is 3500-4000. I am just waiting for tommorow morning to confirm. If market open Gap up in downward direction you know where you first heard about it. Till today morning due to derailment of the bailout plan I expected market to collapse. But it did not because of the unwinding of shorts in cash and futures. What is looking good though for those who are expecting a good return on positive side is the volume which was higher than from the last whole week. What is the most crucial thing is that it is a day before holiday on 2nd. So any movement in either direction could be not be discounted for now. But one thing is for sure it is going to be as spectacular as today. The key points to remember are 3790/3800,3896/3900,4003/4000. The maximum upside to this market is 4000. Nothing much. So I am sorry but I would stay out of OTM on call side and as for the volatile market giving everyone there piece of flesh will not hold true this month. Because unlike trading market where it movement is restricted in a certain fixed zone. In treding market it is unidirectional with one or two contrarian moves. What was today was a contararian move. So my advice would be to exit the OTM's that you have entered at say 4000-level.

 

[detrich]

30-09-2008 635,054,628 14,789.99
29-09-2008 554,578,241 13,111.64
26-09-2008 432,417,615 10,496.83
25-09-2008 612,706,847 15,303.62
24-09-2008 430,140,136 11,814.21
23-09-2008 419,115,744 10,608.22



22-09-2008 436,665,026 11,421.29

 

[detrich]

I was analyzing individual stocks and came across Allahabad bank. The chart looks just good for start of a short term downtrend. After being in a trading range of 68-58 from early July to Early September. Yesterday i.e. on 29th a negative crossover between 5-Day EMA and 10-Day EMA accompanied by the MACD(9 day,12day,26 day) and today confirmed by SAR today. This kind of quick signals generation and confirmations are very rare. So what we can expect is a violent correction here. I will be expecting Allahabad Bank to fall.

CMP-62.95
Target-50(For this month Atleast)
Stoploss-67

Options to buy is(The problem here is that the contract is just not liquid enough) But still if there is anybody out there willing to sell just buy this one. I am sure it would be worth every damn ruppe.
Allahabad Bank Pa-60 OCT 29 @ 1.50 Lot Size-2450
1.5*2450=Rs.3675+100=3775.

 

[detrich]

Good morning Everyone,

it seems a nice morning with Asia looking strong. Nikkie is up 1.24% up, Hang Seng 0.76% and with Dow up. The Bailout seems like it is back on track and there is general optimism across the board. But then we have in last week have completely been untouched by the changes in global scenario so today also the same. The chances of steady market are more. So my gap up theory

 

[detrich]

Today I will be tracking four stocks and three of my current positions
Stocks:-
1)ACC- Strong- buy(Long to meduim term)
2)Allahabad Bank-Sell(Short to medium term)
3)Ashok Leyland- Buy(For daily reversal candidate)
4)SBI-Strong buy(Long to meduim term)

positions
Nifty
Buy CE-3900-191.60 (Entry-Rs.150)
Buy PE-4000-212.45 (Entry-185)
Sold CE-4100-100.90 (Rs.128)

three hypothetical positions
Acc-Buy @ Rs.614.95(in cash)(Entry-597)
CA-1410 SBI OCT 29-105 (Entry-92)
Pa- 60 Allahabad Bank @ 1.5(Entry-1.6)

 

[detrich]

Well markets are tepid. The advance decline ratio is looking good 38 up 12 Down. So no big slide expected. Neutral Bearish market today

 

[detrich]

Selling CE-3900 @ Rs.180