Option Buy Recomendations

[abigbull]

For the week starting Mon-Fri. R1=4500, S1=4100, R1~S1 is within the range (300,400] so one can trade as per trend check strategy posted in the 1st post of this thread. Trend is getting bearish so one can bet more on dwn side. i.e. reco. ratio (1call:2puts).

Will reco. to square off ob daily basis.



U were spot on man .... on monday 22nd june ..can u also recommend if the position was taken at 10.30 or 10.45 am today . Nifty dived as suggested ...

 

[ghosh_ak34]

Dear Friends,

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

Resistence at 4297
Support at 4156

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

 

[ghosh_ak34]

For the week starting Mon-Fri. R1=4500, S1=4100, R1~S1 is within the range (300,400] so one can trade as per trend check strategy posted in the 1st post of this thread. Trend is getting bearish so one can bet more on dwn side. i.e. reco. ratio (1call:2puts).

Will reco. to square off ob daily basis.



U were spot on man .... on monday 22nd june ..can u also recommend if the position was taken at 10.30 or 10.45 am today . Nifty dived as suggested ...

On 22nd i.e. today
Price at 10:00 AM = 4331 and Price at 10:30AM = 4302. So, trend was -ve at 10:30 (more than -20pts) , at 10:45 AM its 4320 so dwn trend was confirmed. So, bought puts at R1 = 4500 for July series as after 20th of the month its reco. to trade in next month's series for options. (Refer 1st post of this thread)

Regards

 

[dewashish]

Sir,
I have bought Nifty options as follows :

Nifty (exp. 25th June) Strike pirice 4500 ( CALL) at Rs 60
Nifty (exp. 25th June) Strike pirice 4500 ( PUT ) at Rs 122

As the options wind up on coming thursday, when should i square off my open positions
whether MON/TUES/WED/THURS...

whats the outlook of Nifty in coming week

 

[jace48]

On 22nd i.e. today
Price at 10:00 AM = 4331 and Price at 10:30AM = 4302. So, trend was -ve at 10:30 (more than -20pts) , at 10:45 AM its 4320 so dwn trend was confirmed. So, bought puts at R1 = 4500 for July series as after 20th of the month its reco. to trade in next month's series for options. (Refer 1st post of this thread)

Regards

Hi Ghosh,

Just a quick Q. When you said "So, bought puts at R1 = 4500" did you mean that you bought PUT of strike price 4500? Or you simply bought ATM or near ATM PUT?

 

[ghosh_ak34]

Hi Ghosh,

Just a quick Q. When you said "So, bought puts at R1 = 4500" did you mean that you bought PUT of strike price 4500? Or you simply bought ATM or near ATM PUT?

The question was answered for weekly R1S1 strategy so it was 4500 strike price put.

Regards

 

[ghosh_ak34]

Sir,
I have bought Nifty options as follows :

Nifty (exp. 25th June) Strike pirice 4500 ( CALL) at Rs 60
Nifty (exp. 25th June) Strike pirice 4500 ( PUT ) at Rs 122

As the options wind up on coming thursday, when should i square off my open positions
whether MON/TUES/WED/THURS...

whats the outlook of Nifty in coming week

Dear dewashish,

Nifty seems bearish this week. So, trade accordingly. Try to exit from current series as expiry is nearing.

Regards

 

[ghosh_ak34]

Dear Friends,

For Nifty Future (June Series) 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 4310
Support at 4165

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

 

[Raj133]

Hi Ghosh,

Thanks for you strategy for the option trading, I am trying the paper trading using your strategy on yesterday results (Monday), I am taking the resistance and support level based on the last week results. Here I have some doubts, could you please clarify this.

last Week high=4517
last Week Low=4251
last Week end=4313

P= 4360.333333
S1= 4203.666667
R1= 4469.666667

R1-S1=266

If (R1 - S1) >= 300 and < 400 then
The above condition is not met so i am trying to use the Sideways strategy (i.e., R1~S1 <300 or >400)

Current Market Nifty Spot = 4338

1) IF Nifty opens with gap up and remain above 20pts till 10:30AM - 10:45 AM
Buy calls at S1 ##Current Value S1: 4203.666667
or
Buy puts at R1 around 3:00 PM-3:15 PM ##Current Value R1: 4469.666667

a)In your strategy you have mentioned you are giving out of the money calls but here you are saying Buy calls at S1, i.e., Buy call at 4203 (~strike price 4200) , Now current market nifty spot value is 4338 so now if I buy the call 4200 this will come under In the money. Is it correct?
b) Same thing for Puts at R1 also, Buy puts at 4469 (~strike price 4450), Nifty spot is 4338, now if I buy the put 4450 this will come under In the money.

And same thing is applicable for below gap down method also, could you please explain me

2) IF Nifty opens with gap down and remain below 20pts till 10:30AM - 10:45 AM
Buy puts at R1 ##Current Value R1: 4469.666667
or
Buy calls at S1 around 3:00 PM-3:15 PM ##Current Value: S1 4203.666667

 

[ghosh_ak34]

Dear Raj,

Your calulations are wrong as you have taken wrong Weekly OHLC. OHLC for the last week starting Mon-Fri is as under:

WO = 4555, WH=4601.05, WL=4206.7,WC=4313.6 so 2WP= 8747.566667and calculated R1=4540.866667 and calculated S1=4146.516667. For R1S1 strike price we take the nearest 100th R1 or S1. So, R1=4500 and S1=4100.

These R1 and S1 are Strike price for Nifty. And Diff. R1 - S1= 394.35 which is within the range (300,400] so its normal strategy, trade as per trend check strategy. Buy more no. of puts at strike price S1 and lesser no. calls at R1 for trading in Nifty options for the next series (after 20th of the month we don't buy options in current series ).

Regarding OTMs for stock options where if you do not hedge then, buy OTM calls or puts with SL=30%. Nowadays liquidity in stock options is low so not trading much in stock options hence not reco. too.

Regards