Option Buy Recomendations

[pranay1986]

Hello Everyone,

I am quite new to options trading, although this month on the hopes of the budget i had given a go to options and had bought a 4700 call @80 rs. 2 or 3 days before the budget on the hopes of our FM delivering a pleasing budget for the markets, although it turned out to be the opposite.

Hence after the budget markets crashed and i got confused as i didn't want to loose the 4000 rs i had put in the call option, so as a part of hedging i took up a 4000 put option at 103 which is now at 134 or something.

Please if anyone can suggest whether this was a good enough strategy. Also is it possible to recover the loss that i mite incur in the call in the put option..meaning the market may go down sufficiently much.

Also if any one can suggest some more strategies/tips. it would be great

Thanks in advance.

Regards

 

[ghosh_ak34]

Hello Everyone,

I am quite new to options trading, although this month on the hopes of the budget i had given a go to options and had bought a 4700 call @80 rs. 2 or 3 days before the budget on the hopes of our FM delivering a pleasing budget for the markets, although it turned out to be the opposite.

Hence after the budget markets crashed and i got confused as i didn't want to loose the 4000 rs i had put in the call option, so as a part of hedging i took up a 4000 put option at 103 which is now at 134 or something.

Please if anyone can suggest whether this was a good enough strategy. Also is it possible to recover the loss that i mite incur in the call in the put option..meaning the market may go down sufficiently much.

Also if any one can suggest some more strategies/tips. it would be great

Thanks in advance.

Regards

Dear pranay1986,

Before any event such as this, one should not participate in specially if anyone is starting new as you. Just exit before the event day.

If one has bought the naked call then, have a SL interday. Before EOD always hedge.

You hedged your call once you started loosing money, this is as per my opinion not a correct way. Will hedge to lock our profit not to reduce our already loosing position. Will prefer an exit from a loosing position with a SL=30% (interday) option. If SL not hit by EOD then will hedge before I call it a day or Square off the naked position.

Hope this helps.

There are many strategies available in traderji, atleast paper trade them before a real trade.

Regards

 

[WOD]

I just checked bid price and offer price of 4400 PE.....Where I found that there is atlease 20 rs difference between bid and offere price....maximum difference between these two is around 100....

Now I hold 4400 PE, and it makes me feel that I should sell this today itself or this difference will be increasing (which will mean lesss liquidity) and then buy 3800 PE........

Ghoshg, Please give your suggestion.

 

[MurAtt]

Don'y sell the PE -- maybe liquidity is less and u may loose 20 rs BUT 3800PE will be loosing more (and faster) if the mkt shows even a slight bounce

Get the drift ...

 

[bobit79]

hi Gosh

i brought put 3700 @ 44

now its @ 35, need to exit tomorw?

or need to hold ?

thanks in advance

bobi

 

[optionstrader]

Dear Optionstrader,

Below is my reco.

GSPL bought at at 57 exit SL=50 has hit
SCI bought at 127 exit SL= 118 has nit
Omnitech bought at 98 hold with SL=71 if trades above 80 for 2-3 days then, buy more.

Regards

HI Ghosh Sir,

Thanks for your guidance.

Since these stocks are already very much below their stop losses, that you have suggested, kindly guide, weather i should compeltely exit from these stocks, or can i average.

Actually the problem is,since i have missed the stop loss, if i exit now
i will be in a loss of about Rs.45000.


Kindly guide what to do ?


Awaiting your quickest response,


Thanks & Regards,
Optionstrader

 

[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 4025
Support at 3912

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 Gosh

i brought put 3700 @ 44

now its @ 35, need to exit tomorw?

or need to hold ?

thanks in advance

bobi

Will reco. you to hold 3700 Put with SL=29

Regards

 

[ghosh_ak34]

HI Ghosh Sir,

Thanks for your guidance.

Since these stocks are already very much below their stop losses, that you have suggested, kindly guide, weather i should compeltely exit from these stocks, or can i average.

Actually the problem is,since i have missed the stop loss, if i exit now
i will be in a loss of about Rs.45000.


Kindly guide what to do ?


Awaiting your quickest response,


Thanks & Regards,
Optionstrader

Dear Optionstrader,

Sorry to learn that you are at loss. Well what to say now, hold till recovery starts and then, start averaging it.

Regards

 

[linkon7]

Hi Ghosh,
I want ur opinion about a strangle that i bought on Wednesday as closing strategy. Nifty was looking set to break 4050 levels and head lower. I bought 1 lot each of 4000 put and 4200 call for a total premium of 212. On friday, post the last half an hour of sell off, the strangle was worth 184. Today, at closing, the strangle was still worth only 184. i wanted to make the delta neutral, so i bought another 4200 call. Now the cost of my options is 252.

So now i have 2 lots 4200 call and 1 lot of 4000 put for a total value of 252. The last traded price of the options combined was 215. How would u recommend me to proceed with it.