SH's 315 Strategy - how to use if effectively

[VJAY]

Dear SH,

As I have very little knowledge about 'options', you are requested to clarify the following points.

You have written :


1) If 315 has given a bullish crossover, the trend is up, the puts will go down in value so sell puts.

If 315 has given a bearish crossover, the trend is down, the calls will go down in value so sell calls.

How does one make money here?

2) What are 'Money options' and 'At the money options (ATM)' ?


3) Why should we not write in 'Money options'? How is it affected if Market Gaps Up or Down suddenly?

4) What is 'Naked put' and why is it not to be written?

5) 'This is used only by traders who are professionals and have deep pockets, not recommended for any trader with small capital (less than 5 lakhs).'

Does it mean that 'Options' is for one who have deep pockets and not for trader with small capital?

Sorry to aske you so many at a time; but, this will help others like me to understand options better.

Regards,

Raju

Dear Raju,
You can get knowledge about option at w w w.888options.com/
(remove sapce from link)..thanks to ghosh sir for this link....

 

[observer]

Dear SH,
Hold us options newbies hands for a while if you can.

According to your options strategy, we could have sold CE5500 at around Rs66 on 27/08/2010, because of bearish crossover. Is that correct?

Thanks

 

[Tradewithhunter]

Dear SH,
Hold us options newbies hands for a while if you can.

According to your options strategy, we could have sold CE5500 at around Rs66 on 27/08/2010, because of bearish crossover. Is that correct?

Thanks

Yes.

Cheers
SH

 

[rrmhatre72]

Hi SH,

Nifty has given short signal as per 315.
Which is the level for today to be monitored for Nifty?
Above which again positions need to be changed to long as per 315.

 

[vinst]

Hi SH,

Nifty has given short signal as per 315.
Which is the level for today to be monitored for Nifty?
Above which again positions need to be changed to long as per 315.

check at 3:25pm whether 3ema has gone above 15ema. before that time, no nifty level to be monitored for reversing to long.
regards,
vin

 

[rrmhatre72]

check at 3:25pm whether 3ema has gone above 15ema. before that time, no nifty level to be monitored for reversing to long.
regards,
vin

Hi Vinst,

Pls suggest some site where I can monitor this.

 

[vinst]

Hi Vinst,

Pls suggest some site where I can monitor this.

i am not aware of free site for this info. however, if u can keep nf values in Excel for past 30 days, u can urself monitor with calculation of ema's

vin

 

[nick721156]

Dear SH,

As per 315, I have booked profit today in the opening as candle was not touching the 3EMA. Now, shall I once again enter either @ the value of 3EMA when I booked profit or @ the touch of 3EMA? If market goes down furher, 3EMA will come down and touch the candle, and so the value of 3EMA at which I exited will be higher than the present value.

Regards,

Raju

 

[msri]

i am not aware of free site for this info. however, if u can keep nf values in Excel for past 30 days, u can urself monitor with calculation of ema's

vin

Will you please explain the Excel method
msri

 

[tmnkin]

F&O Crossover as on 31-Aug-2010

Entry date Scrip Action Reason Entry Price Stop Loss
31-Aug-2010 HDFCBANK SELL 315 -Cross 2138.60 2192.07
31-Aug-2010 LT SELL 315 -Cross 1819.75 1865.24

Cash Crossover as on 31-Aug-2010

Entry date Scrip Action Reason Entry Price Stop Loss
31-Aug-2010 TATASTEEL BUY 315 +Cross 522.00 508.95