Option Buy Recomendations

[ghosh_ak34]

Here Mr Ghosh do u recommend wrting any(call / Put ) options for july month . pls recommend whether we should do it or not .

Dear abigbull,

Yes, one can write July Nifty options as well but I doubt to pocket much premiums as expiry is nearing using OTM writes.

E.g. buying July 4500 call and writing July 4800 calls will not give good returns so have suggested August.

Regards

 

[ghosh_ak34]

Dear Mr.Ghosh,

Congrats and thanks for this wonderful thread. I came across it only 2 days back. i have a doubt and hope you will help. in your first post it is said in sideways trend if at 10.30 am there is a rise of more than 20 points from opening price, then buy call at S1. My question is-- do you mean that call should be bought at the time when the underlying spot price of nifty reaches S1 level, waiting for the spot price to reach that level or do you mean that at 10.30 am when an upward trend is visible a call at the srike price near S1 level should be bought at 10.30-10.45 am itself - please clarify

Thanks in advance
Shaji

Dear drshajikt,

Yes, S1 and R1 are the strike prices. For next week R1=4600 and S1=4400.

So, you can trade as per side ways strategy posted in the 1st post of this thread.

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 4616
Support at 4523

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

 

[bhallaji]

Dear Ghosh Sir,

Please explain how does it work to our advantage if we buy this call near expiry?

Regards,
bhalla

Dear Friends,

Take advantage of expiry and buy NTPC 210 call around 4.5 with SL=3.5 target 6.5

Regards

 

[ghosh_ak34]

Dear Ghosh Sir,

Please explain how does it work to our advantage if we buy this call near expiry?

Regards,
bhalla

Dear Bhalla,

I am reco. this because charts and option data says so. Look at charts of NTPC its showing an uptrend and current months 210 strike price build ups.

Regards

 

[abigbull]

Dear Bhalla,

I am reco. this because charts and option data says so. Look at charts of NTPC its showing an uptrend and current months 210 strike price build ups.

Regards

Ghosh

Is there any rule where there could be extra advantage in NTPC 210 call when we are nearing an expiry ? at what spot price had u recommended the NTPC call
I saw it to be 8.10 @ 217 NTPC today . Does this july call also has a time decay ?

 

[bhallaji]

Ghosh Sir,

Today I saw a very high volume of trade on the stock options as against the usual for index options on other days. What is the reason for people getting suddenly interested in stock options when they are near expiry?

Regards,

bhalla

 

[huineng]

Dear Mr.Ghosh,
Thank you for your very useful insights. I have a doubt. What should be the size of a gap to look out for?

 

[ghosh_ak34]

Ghosh

Is there any rule where there could be extra advantage in NTPC 210 call when we are nearing an expiry ? at what spot price had u recommended the NTPC call
I saw it to be 8.10 @ 217 NTPC today . Does this july call also has a time decay ?

Dear abigbull,

The rule is to buy a in-money strike price of a stock option just to take advantage of expiry if the volume in the stock is above normal and faster MACD has crossed or over slower MACD, in this case 20 macd has crossed 50 macd. Which suggests a strong up move. Offcourse liquidity in stock option should also support this TA. So, have suggested to buy 210 NTPC call.

I have exited from it and would now not suggest any entry. Position in these should not be more than 2-3 days as its near expiry and time decay is against us.

217 NTPC of current series is AT money and I would not suggest an entry as its risky because expiry is just 2 days away.

Regards

 

[ghosh_ak34]

Ghosh Sir,

Today I saw a very high volume of trade on the stock options as against the usual for index options on other days. What is the reason for people getting suddenly interested in stock options when they are near expiry?

Regards,

bhalla

Dear Bhalla,

There is not much move is expected in index, now time has come to look at stock options hence traders are interested in stock options.

Regards