Option Buy Recomendations

[ghosh_ak34]

Hi Ghosh Sir,


Adding to vasanth_ece vasanth_ece' s question, we cannot avoid the brokerage also , on both sides thatis 2.5 for options.

In order to get decent profit, we have to cover brokerage also.

What do you think ?

Kindly guide.

Awaiting response,

Thanks & Regards,
Optionstrader

Dear Optiontrader,
Yes, we need to keep brok. etc into consideration. See I said earlier if its sideways trade or do not trade, because you need big heart to trade in sideways market. Sideways means outside 300,400 range, which is the current case. If you are not having the big heart then, better stay away.

Regards

 

[citrus]

Dear Tomdickpary,

You need to compare the Nifty spot prices of 10:00 AM with 10:30/10:45AM. Price at 10:00 AM was 3022 and price at 10:30 was 3009 means 3009-3022= -13 > -20 so will wait for confirmation of the down trend till 10:45AM. At 10:45 price is 3009 so no change. Will not initiate any trade and will wait for 12:30 PM price. At 12:30 the price is 2980. i.e. 2980-3009 (price at10:30)=-29 <-20 so will buy puts at R1=3100 at rate around 256 with SL=180 and exit around 290 as trailing SL hits there i.e. with profit of 34 per lot. Check trend at 3:00 PM, price at 3:00PM is 3032 i.e. 3032-2980=42 >20 so will buy a call at S1=2500 around Rs 600 with SL=420 and exit at Rs 620 if you do not want to carry the long or buy put at R1 at around Rs 235 to hedge the long positions. Next day either exit the loss making option and hold the profit making one with trailing SL=10% or exit from both simultaneously, depending on your risk appetite.

Regards

Respected Ghosh,
As per strategy, we are suppose to keep 10% trailing stop loss with respect to the highest price quoted till then. On Nov 03, highest price quoted was Rs 290 for 3100 PUT, so trailing stop will hit at 290-29 = 261. Am I right?
Regards.

 

[ghosh_ak34]

Respected Ghosh,
As per strategy, we are suppose to keep 10% trailing stop loss with respect to the highest price quoted till then. On Nov 03, highest price quoted was Rs 290 for 3100 PUT, so trailing stop will hit at 290-29 = 261. Am I right?
Regards.

Dear Citrus,

I don't remember exactly the highest point at that point, but my trailing SL =10% was hit around 290 so I exited.

Regards

 

[VJAY]

Dear Citrus,

I don't remember exactly the highest point at that point, but my trailing SL =10% was hit around 290 so I exited.

Regards

Ghosh Sir,

Can you explain how you calculate the trailing stoploss.Yesterday high of Put is 290!!
I also paper traded in Put and squarred it @280

Thanks & Regards
VJAY

 

[tomdickpary]

dear sir today i am short in nifty fu @ 10.45 .thanks for u r support . lest 1.5 month i am trading with ur strategy on paper .and result is 100%profit. so thanks for ur guidance. i think ur with ur strategy we can trade nifty fu also .its workinggggggggg
thanks

 

[ghosh_ak34]

Ghosh Sir,

Can you explain how you calculate the trailing stoploss.Yesterday high of Put is 290!!
I also paper traded in Put and squarred it @280

Thanks & Regards
VJAY

Dear Vijay,

Trailing SL=10% from CMP. As said earlier, I exactly do not remember yesterday's high but my trailing SL got triggered so I exited around 290.

You did the right thing by squaring off at 280, its not necessary always to wait for exact 10% to hit. If you see a sudden reversal you may take an early call as well.

Regards

 

[tomdickpary]

SIR today at 10.30 to 10.45 nifty was not giveing any up or down move .so i decide not take any chance .i was right or worng .

 

[jace48]

SIR today at 10.30 to 10.45 nifty was not giveing any up or down move .so i decide not take any chance .i was right or worng .

You where very much right. Else where many people got whipsawed. You should pat your back on not trading because you where confused

 

[optionstrader]

Hi Ghosh Sir,

Nifty S1 R1 Levels for next week :
(Kindly correct me if i am wrong)

2919
s1 = 2x2919-3007=2831
R1 = 2x2919-2860=2978

R1-S1=147

So i guess, i sideways strategy again.

Kindly guide,

Awaiting your response,


Thanks & Regards,
Optionstrader

 

[rahul1983]

Ghosh Sir , I have BOUGHT A STRANGLE

I bought 500 ( 2500 P and 3500 C ) Total Cost : 110

and since nifty is @ the same place from last 2 days the premium decayed to 75 now

Based on your exp , what you think will we get 3400 - 3500 / 2500 - 2600

in Nifty in November ????

Or should I book my loss when it comes near cost 90 - 100 ???

Plzz help i know i made a mistake by making strangle with 1000 range, now whats the way out of this trade ??? any strategy suggestions

Thanks
Rahul