Option Buy Recomendations

[ghosh_ak34]

Dear Friends,

For the week starting Mon-Fri, R1 = 3300 and S1 = 3000 and R1 ~ S1 is outside the range (300,400] so trade as per sideways strategy.

Nifty might surprise us with a sudden reversal so trade accordingly.

Regards

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistence at 3310
Support at 3225

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend strategy posted in 1st post of this thread.

Regards

 

[thesaint]

Mr. Gosh,

Can u explain the term (1) if u go short 1 lot then, buy at money or near money call
(2) if you go long 1 lot then, buy 1 lot at money or near money put

at money and near money means


pls do explain me the above terms

hope to hear sooon
regards

 

[ghosh_ak34]

Mr. Ghosh,

Can u explain the term (1) if u go short 1 lot then, buy at money or near money call
(2) if you go long 1 lot then, buy 1 lot at money or near money put

at money and near money means
pls do explain me the above terms

hope to hear sooon
regards

Please refer previous pages for the answer, its a repeatative question. To understand options please refer training material on options. To start with pleasse refer to 888options.c0m

Regards

 

[abigbull]

3060 is resiatnce for April 1st .Not for today .For the whole week R1= 3200 and S1= 2900 . If you are carrying postions , use the weekly support and resistance , not the daily ones .

You did a trade in the last minutes of the day ? Did you hedged it or just a naked Short ?

Naresh

Hello Naresh
It was a naked short ..as i always thought a hedge position will not give u much returns as u have some opposite positions which is opposite to the trends ....or should i follow a principle that i should not enter the options trade with naked Call/Put positions .

 

[gsri]

Dear Ghosh sir,

I have read your Ist post with a lot of interest.

When weekly S1 - R1 range is outside your recommended 300-400 Range you have suggested either NO trading or trading as per Sideways strategy.

When weekly S1 - R1 range is within 300-400 you have suggested trading as per Trend check strategy.

But somehow the essential difference between the two strategies is not getting highlighted.

In both cases trade is taken 30 min after open when there is a 20 point diff between open price and price at 10.30 . So is sideways strategy only in the case of Gap up and Gap down openings ??


Would it be possible to elaborate mainly on the difference in the two strategies please.


Regards
sri

 

[nareshch]

I wish to clear my doubts with your rich opinion. That I am holding one CALL Option 3100-CE-April. The current Premium value is Rs.194 and the Index has been closed on 02-Apr at 3211.05. My Question is - how long I should hold the Option if say Nifty hits the 3350 on 05-Apr or even crosses 3350 to reach the unknown level - before 30-04-2009 ?? Is there any possibility the Contract may become illequid and I would have no choice but to Sale immediately to avoid the situation ?? Pl. suggest.

Trail your call with SL and sell it when you see no premium left in that .

Naresh

 

[ananthsankaran]

Hi,

I am novice to trading. i am currently holding a PE for 2950 and another PE for 3150. Both of these expire by End of April. (both Nifty)

I the the following queries:

I got PE 2950 @ 114 while PE for 3150 @ 75.

1. Can you please let me know if i should continue holding this or should i square-off?

2. Can we do a PE and CE at the same time? For ex.. PE @ 2950 and a CE @ 3100. is it possible?

3. What is the reason behind this steep rise in the market (i personally do not see any specific fundamental thats driving this market)?

4. Where do you expect the markets to be by April, May? I personally think elections, Q4 results would hold the key.

Your suggestions are highly appreciated.

Thanks,
Ananth

 

[nareshch]

Hello Naresh
It was a naked short ..as i always thought a hedge position will not give u much returns as u have some opposite positions which is opposite to the trends ....or should i follow a principle that i should not enter the options trade with naked Call/Put positions .

Buying naked call /put will have a lesser and predefined risk . BUT , If you are shorting, its better to have some hedge as the risk is unlimited.
If you do not want to hedge , the go with put instaed of shorting futures , buy a call if you want to long the futures. ( In this case also , options will loose premium .so for a raise of 100 points on nifty , your profit in option s may be around 50-60 points) .

Naresh

 

[ghosh_ak34]

Hi,

I am novice to trading. i am currently holding a PE for 2950 and another PE for 3150. Both of these expire by End of April. (both Nifty)

I the the following queries:

I got PE 2950 @ 114 while PE for 3150 @ 75.

1. Can you please let me know if i should continue holding this or should i square-off?

2. Can we do a PE and CE at the same time? For ex.. PE @ 2950 and a CE @ 3100. is it possible?

3. What is the reason behind this steep rise in the market (i personally do not see any specific fundamental thats driving this market)?

4. Where do you expect the markets to be by April, May? I personally think elections, Q4 results would hold the key.

Your suggestions are highly appreciated.

Thanks,
Ananth

Dear Ananth,

1. Can you please let me know if i should continue holding this or should i square-off?

Ans:. Hold your puts with SL=30% from your buy price.

2. Can we do a PE and CE at the same time? For ex.. PE @ 2950 and a CE @ 3100. is it possible?

Ans: .Yes! Its possible hold both call and put at the same time. But its important to buy these only after one has done the homework properly.

3. What is the reason behind this steep rise in the market (i personally do not see any specific fundamental thats driving this market)?

Ans: There is no fundamental reason behind this sudden rise. This rise was mainly due to two reasons - (a) Due to positive global clues and (b) market was in too much oversold zone so it was technical bounce.

4. Where do you expect the markets to be by April, May? I personally think elections, Q4 results would hold the key.

Ans: Well we might see a range bound market in Apr/May and a consolidation is not ruled out. May is month of election results so we might see some abrupt movement either way. So, would suggest only day trading during May and carry no open positions home.

Regards