Trading with PT style

[praveen taneja]

Nifty next week 4800 or 5200??????????????????[/B]

 

[rrmhatre72]

I feel 5130-50 will be max upside then it will slide towards 4800.
Not sure it will touch 4800. But this week's close will be lower than last week's close...

I am thinking of initiating rangebound statergy by selling 5000 call+ Put @275.
Currently it is at 263. If market goes above 5100 then only I will be able to get my desired price... Let us see..

I am keeping my last week's answer as is. i.e target for 4800 but not sure of touching it.
But this time I am in better position. I have sold naked call of 5100 @107 on last moment on Friday.
I will cover it on Monday-Tuesday by either squaring it off or selling 4900 put to hedge it.

 

[praveen taneja]

Forthcoming Board Meetings
Date Company Purpose
7-Jun-2010 Caprolactam Chem Results
7-Jun-2010 Eclerx Serv Bonus
7-Jun-2010 Interface Fin Increase in Authorised Capital
7-Jun-2010 Padmalaya Tele General
7-Jun-2010 Uflex General

 

[simple_trader]

Iavg my put when nifty spot was at 5140 at 58 now combine cost at 70 close 62.5 hope for a good gap down on monday and good profit for me by the grace of god last two three draught covered hope so

Congratulations! for the expected gap down open and possible profits!!

 

[praveen taneja]

Market Outlook
Forthcoming Corporate Action
Scrip Code Scrip Name Ex-Date Purpose
532106 REI Agro 7‐Jun‐10 Right 2:1
500355 Rallis India 8‐Jun‐10 BONUS 1:2
522219 Hyderabad Flex 9‐Jun‐10 Amalgamation
532667 Suzlon Energy 9-Jun-10 Right 2:15
524370 Bodal Chemicals 10‐Jun‐10 Stock Split from Rs. 10/‐ to Rs. 2/‐
532175 Infotech Enter 10-Jun-10 BONUS 1:1
532398 Usha Martin Edu 14‐Jun‐10 Reduction of Capital
Forthcoming Dividends
Scrip Code Scrip Name Ex-Date Purpose Rs.
530315 Hindustan Tin 7‐Jun‐10 Interim Dividend 1
532814 Indian Bank 7‐Jun‐10 Final Dividend 4
531102 Surana Corp 7‐Jun‐10 Dividend 1.5
513629 Tulsyan NEC 7‐Jun‐10 Dividend 2
500335 Birla Corp 8‐Jun‐10 Final Dividend 3.5
531391 Ratnabali Cap 8‐Jun‐10 Dividend 5
532221 Sonata Soft 8‐Jun‐10 Dividend 0.8
532893 VTM 8‐Jun‐10 Dividend 3.2
500875 ITC 9‐Jun‐10 Dividend 10
500112 SBI 9‐Jun‐10 Dividend 20
500180 HDFC Bank 10‐Jun‐10 Dividend 12
532174 ICICI Bank 10‐Jun‐10 Dividend 12
500279 Mirc Elect 10‐Jun‐10 Dividend 0.95
506532 Nitta Gelatin 10‐Jun‐10 Dividend 6
532522 Petronet LNG 10‐Jun‐10 Dividend 1.75
500403 Sundram Fast 10‐Jun‐10 2nd Interim Dividend 0.5
532504 Navin Fluorine 11‐Jun‐10 Final Dividend 7.5
532949 Piramal Glass 11‐Jun‐10 Dividend 1
500228 JSW Steel 14‐Jun‐10 Dividend 9.5
502937 Kesoram Inds 14‐Jun‐10 Final Dividend 3.25
500315 Oriental Bank 14‐Jun‐10 Dividend 9.1
532517 Patni Computer 14‐Jun‐10 Final Dividend 3
524230 Rashtriya Chem 14‐Jun‐10 Dividend 1.1
511288 Gruh Finance 15‐Jun‐10 Dividend 6.5

 

[praveen taneja]

Congratulations! for the expected gap down open and possible profits!!

Sab Ramji Ki Kripa hai I am expecting opening around or between 5020-40:clap:

 

[praveen taneja]

For the current week, it is expected that Nifty may give a range bound movement of
4850-5200. The weekly support level of nifty is 5094. If nifty breaks this level, it may
go to the level of 5010 then 4950. So, traders are advised to restricted trade and
maintain stop loss at 5094 of their long positions. but If nifty able to trade above 5072,
the positive rally will continue and nifty may show the level of 5220 and 5310
levels are for NF only

 

[MarketRider]

I am keeping my last week's answer as is. i.e target for 4800 but not sure of touching it.
But this time I am in better position. I have sold naked call of 5100 @107 on last moment on Friday.
I will cover it on Monday-Tuesday by either squaring it off or selling 4900 put to hedge it.

bro, whats ur max profit ...107 x 50 = 5350..? if say u covered @ 90 then profit = 107 - 90 = 17 x 50 = 850 is it...?...whats the benefit of writing options....i mean you can always buy call or put for same profit.?..then what is the advantage in selling ..?

 

[Luv_Stocks]

bro, whats ur max profit ...107 x 50 = 5350..? if say u covered @ 90 then profit = 107 - 90 = 17 x 50 = 850 is it...?...whats the benefit of writing options....i mean you can always buy call or put for same profit.?..then what is the advantage in selling ..?

think probability...! if u bearish and short 5100 call at 107, then the gain is limited to 107 points max, and losses are unlimited but that loss begins from 5207 and above....

But suppose u are bullish and buy 5100 call at 107, then your profit begins from 5207 only and unless that level is reached... u are at a loss. If market decides to pause, then your time value erodes and you loose on premium even though you got you direction right....

in a nut shell... options buyers have to get the direction and the time taken to reach the destination right... option sellers can afford to get it wrong... time is their friend...

 

[rrmhatre72]

bro, whats ur max profit ...107 x 50 = 5350..? if say u covered @ 90 then profit = 107 - 90 = 17 x 50 = 850 is it...?...whats the benefit of writing options....i mean you can always buy call or put for same profit.?..then what is the advantage in selling ..?

Hi MR,

Luv has explained it nicely.
Further to that, I do not carry position over weekend.
If I have to then I sell it & try to take advantage of time dekay.
This time I have sold 5100call @107. Nifty spot was @5135.
This mean intrinsic value was only Rs35 & Rs72 was time dekay.
If market would have opened flat today then also value of my call would have opened at ~Rs100 due to time dekay.
Now with Market fall, it is @Rs50-60range hence enjoying more benifit.