Option Buy Recomendations

[abigbull]

Hi Blue guy

Did u found the trend properly today ....on 24th june Wednesday ?
Or did the market behave as per ur views ? as the nifty had seemed bearish still it is rising for this week .....

 

[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 4375
Support at 4245

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]

Hi Blue guy

Did u found the trend properly today ....on 24th june Wednesday ?
Or did the market behave as per ur views ? as the nifty had seemed bearish still it is rising for this week .....

Dear Abigbull,

Everyday market behaves different. Overall view of the market is still bearish. One can still make money following this strategy, if you have bought calls or 1 call atleast as per trend check then, might have ended in profits.

Anyway, I am not here to advocate my system, its upto you to follow this strategy or not. So, always reco. a paper trade for 3 months before one starts real trade.

Regards

 

[Raj133]

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.

Regards

Thanks Ghosh, I have taken the data from Google finance starting from Tuesday morning. Now R1=4500 and S1=4100 and based on our first thread, Buy calls at S1 and puts at R1 if the first condition met.

Buy call at S1 Current Value S1:4100, current nifty spot is 4338 so this is In the money call, Am I right?

Buy Put at R1 Current Value R1:4500, current nifty spot is 4338 so this is also In the money, Could you please explain and correct me if my understanding is wrong.

From your first thread:

If (R1 - S1) >= 300 and <400 then,
Buy calls at S1 and puts at R1 as per trend stated in "How to check trend and buy options". In case of bearish market buy more puts (e.g. 3-4 lots) than call (e.g 1 lot) and in case of bullish market buy more calls (e.g. 3-4 lots) than put (e.g. 1 lot).

else
Do not trade at all or trade as per sideways strategy stated below.

 

[ghosh_ak34]

Thanks Ghosh, I have taken the data from Google finance starting from Tuesday morning. Now R1=4500 and S1=4100 and based on our first thread, Buy calls at S1 and puts at R1 if the first condition met.

Buy call at S1 Current Value S1:4100, current nifty spot is 4338 so this is In the money call, Am I right?

Buy Put at R1 Current Value R1:4500, current nifty spot is 4338 so this is also In the money, Could you please explain and correct me if my understanding is wrong.

From your first thread:

Yes, please read and understand options firs, before you start trading in options.

Regards

 

[BlueGuy]

Hi Blue guy

Did u found the trend properly today ....on 24th june Wednesday ?
Or did the market behave as per ur views ? as the nifty had seemed bearish still it is rising for this week .....

Abigbull,

I didn't find any trend on Tuesday 23rd between 10:00 and 10:30/45. And also between 10:30/45 till 12:30. So didn't trade on 23rd.

On 24th, there was no trend till 10:45, but up-trend was observed from 10:45 -12:30, so I bought Call-4200 at 12:30 and sold them at 2:45 with 40% profit. :clap: :clapping:

Disclaimer: This was just a paper trade and not REAL. :annoyed:

 

[abigbull]

Everyday market behaves different. Overall view of the market is still bearish. One can still make money following this strategy, if you have bought calls or 1 call atleast as per trend check then, might have ended in profits.

Anyway, I am not here to advocate my system, its upto you to follow this strategy or not. So, always reco. a paper trade for 3 months before one starts real trade.


------- I understand Mr. Ghosh for that ....Me just a beginner on a learning phase .... well by far ur approach looks very logical so posing lots of Q's to get a grasp of it ..
thanks for al the daily updates .. :thumb:

 

[Raj133]

Hi Ghosh,

I have bit confused

In your first thread you have mentioned Buy calls at S1 and puts at R1
------
If (R1 - S1) >= 300 and <400 then,
Buy calls at S1 and puts at R1 as per trend stated in "How to check trend and buy options". In case of bearish market buy more puts (e.g. 3-4 lots) than call (e.g 1 lot) and in case of bullish market buy more calls (e.g. 3-4 lots) than put (e.g. 1 lot).
------

In you last reply you are mentioned puts at strike price S1 and lesser no. calls at R1
----
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 ).
-----

Could you please clarify this

Thanks in advance...

 

[ghosh_ak34]

Dear Friends,

For Nifty Future (July 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 4325
Support at 4172

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]

Hi Ghosh,

I have bit confused

In your first thread you have mentioned Buy calls at S1 and puts at R1
------
If (R1 - S1) >= 300 and <400 then,
Buy calls at S1 and puts at R1 as per trend stated in "How to check trend and buy options". In case of bearish market buy more puts (e.g. 3-4 lots) than call (e.g 1 lot) and in case of bullish market buy more calls (e.g. 3-4 lots) than put (e.g. 1 lot).
------

In you last reply you are mentioned puts at strike price S1 and lesser no. calls at R1
----
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 ).
-----

Could you please clarify this

Thanks in advance...

Dear Raj133,

If trend is dwn and R1-S1 is within (300,400] then, its reco. to buy more puts at R1 as per trend check strategy and if trend is down then, buy lesser no. of calls since market trend is dwn so taking less risk.

Hope this helps.

Regards