SH's 315 Strategy - how to use if effectively

[Tradewithhunter]

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

You need to enter again at the touch of 3 EMA irrespective of whether it happens below your exit level or above.

Cheers
SH

 

[observer]

Dear SH

On 11/08/2010 TATASTEEL had a bearish crossover @ 519.50 close. As per your options strategy, we could have written a 540CA expiring on 26/08/2010.

When are we supposed to close the Call option? Because till 26/08/2010 the swing had yet not reversed, bullish crossover happened on 31/08/2010.

This query could be OT, but on expiry how is profit loss calculated? Is it the difference in premium or some other way?

Thanks

 

[tmnkin]

F&O Crossover as on 01-Sep-2010

Entry date Scrip Action Reason Entry Price Stop Loss
01-Sep-2010 HDFCBANK BUY 315 +Cross 2157.10 2103.17
01-Sep-2010 LT BUY 315 +Cross 1838.90 1792.93
01-Sep-2010 NTPC BUY 315 +Cross 197.25 192.32
01-Sep-2010 TATASTEEL BUY 534 +Cross 539.35 525.87

Cash Crossover as on 01-Sep-2010

Entry date Scrip Action Reason Entry Price Stop Loss
01-Sep-2010 ICICIBANK BUY 315 +Cross 991.95 967.15
01-Sep-2010 TATASTEEL BUY 534 +Cross 537.65 524.21

 

[rrmhatre72]

F&O Crossover as on 01-Sep-2010

Entry date Scrip Action Reason Entry Price Stop Loss
01-Sep-2010 HDFCBANK BUY 315 +Cross 2157.10 2103.17
01-Sep-2010 LT BUY 315 +Cross 1838.90 1792.93
01-Sep-2010 NTPC BUY 315 +Cross 197.25 192.32
01-Sep-2010 TATASTEEL BUY 534 +Cross 539.35 525.87

Cash Crossover as on 01-Sep-2010

Entry date Scrip Action Reason Entry Price Stop Loss
01-Sep-2010 ICICIBANK BUY 315 +Cross 991.95 967.15
01-Sep-2010 TATASTEEL BUY 534 +Cross 537.65 524.21

Hi Sh,

Is Nifty still in sell mode?
Which level should be monitored tomorrow to see if there is any reversal?
Can we add more short at this level?

 

[Tradewithhunter]

Hi Sh,

Is Nifty still in sell mode?
Which level should be monitored tomorrow to see if there is any reversal?
Can we add more short at this level?

rrmmhatre,

Yes 315 is still bearish. No shorts to be added as this is not part of the rules.

Cheers
SH

 

[Tradewithhunter]

Dear SH

On 11/08/2010 TATASTEEL had a bearish crossover @ 519.50 close. As per your options strategy, we could have written a 540CA expiring on 26/08/2010.

When are we supposed to close the Call option? Because till 26/08/2010 the swing had yet not reversed, bullish crossover happened on 31/08/2010.

This query could be OT, but on expiry how is profit loss calculated? Is it the difference in premium or some other way?

Thanks

Dear Observer - When to book calls is purely upto you. I would suggest book profits when the call value has fallen by 75% and a lot of days to expiry are still left.

A lot of times with less liquid stock options, when they become OTM you dont get sellers at low price so you have no option but to hold until expiry.

At expiry, if the price of tata steel is below 540 , the option will expire worthless and you get to keep all the money you got when you sold the option.

Cheers
SH

Alternatively, you can hold till expiry

 

[sherbaaz]

Hi All.

Request anyone having AFL/METASTOCK formula for 3-15 kindly share.


Regards,

 

[Tradewithhunter]

Hi All.

Request anyone having AFL/METASTOCK formula for 3-15 kindly share.


Regards,

Hi Sherbaaz - I remember someone posted the AFL under the main thread.

Cheers
SH

 

[sherbaaz]

Hi Sherbaaz - I remember someone posted the AFL under the main thread.

Cheers
SH

Thanks a ton SH for such a quick reply. Got the AFL in the main thread.

Regards:thumb:

 

[rrmhatre72]

rrmmhatre,

Yes 315 is still bearish. No shorts to be added as this is not part of the rules.

Cheers
SH

Hi SH,

Today market is above 5480.
Is buy signal getting created today?