Option Buy Recomendations

[cbosein]

Got duplicated. Sorry.

Keerthi

 

[ghosh_ak34]

Hi ghosh_ak34,

I am new to this thread & read your 1st post which elaoborate & informative. Thanks for the same.

I want to clear some basic doubts as listed below.

1) R1 for 16th is 5052 whether to take it as 5100 or 5000 for PUTs, since it is alomost mid of 2 strike prices?

2) S1=4945, so we will consider as 4900 strike price for CALLs. Is it ok or since this also alomost mid of 2 levels?

3) From your 1 st post, we have to follow Nifty spot index levels for trading options. What is consequence if we follow Nifty future levels for option trading. This is only for fine tuning my knowledge?

4) I am holding 2 lots of CE4900 @ 174 & 4 lots of PE5000 @ 2 lot at 154 & 2 lot at 112 (all are Nov series). What is your recos for exiting these CEs & PEs?

Your comments / suggestions will be highly apperciated.

Thanks &Regards,
Keerthi

Dear cbosein,

Below are my answers:

1) R1 for 16th is 5052 whether to take it as 5100 or 5000 for PUTs, since it is alomost mid of 2 strike prices?

Ans: Will take far ORM i.e. 5100 as R1, as its nearest 100 is 5100. Though one can choose 5000 as well.

2) S1=4945, so we will consider as 4900 strike price for CALLs. Is it ok or since this also alomost mid of 2 levels?

Ans: Will prefer nearest 100 i.e. 4900.

3) From your 1 st post, we have to follow Nifty spot index levels for trading options. What is consequence if we follow Nifty future levels for option trading. This is only for fine tuning my knowledge?

Ans: In options we take underlying for TA not futures. As future may be in premium or discount so getting correct picture is difficult.

4) I am holding 2 lots of CE4900 @ 174 & 4 lots of PE5000 @ 2 lot at 154 & 2 lot at 112 (all are Nov series). What is your recos for exiting these CEs & PEs?

Ans: 1st thing is do not average option trades. I think you can hold with a suitable strike price. And if need arises adjust your position by writting 5200 put after squaring off 5000 Put.

Regards

 

[cbosein]

Dear cbosein,

Below are my answers:

1) R1 for 16th is 5052 whether to take it as 5100 or 5000 for PUTs, since it is alomost mid of 2 strike prices?

Ans: Will take far ORM i.e. 5100 as R1, as its nearest 100 is 5100. Though one can choose 5000 as well.

2) S1=4945, so we will consider as 4900 strike price for CALLs. Is it ok or since this also alomost mid of 2 levels?

Ans: Will prefer nearest 100 i.e. 4900.

3) From your 1 st post, we have to follow Nifty spot index levels for trading options. What is consequence if we follow Nifty future levels for option trading. This is only for fine tuning my knowledge?

Ans: In options we take underlying for TA not futures. As future may be in premium or discount so getting correct picture is difficult.

4) I am holding 2 lots of CE4900 @ 174 & 4 lots of PE5000 @ 2 lot at 154 & 2 lot at 112 (all are Nov series). What is your recos for exiting these CEs & PEs?

Ans: 1st thing is do not average option trades. I think you can hold with a suitable strike price. And if need arises adjust your position by writting 5200 put after squaring off 5000 Put.

Regards

Hi ghosh_ak34,

Thanks for your immedaite response & valuable input for my queries.
All point are clear & I will avoid averaging.

Thanks again.
Keerthi

 

[stockBond]

Will not prefer to execute a buy call options of these counters.

Regards

Both r on fire..............what is ahead in these two CALL options ?

 

[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 5082
Support at 5025

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]

Both r on fire..............what is ahead in these two CALL options ?

Congrats! You are quite lucky, it is in overboughtzone so will still not enter.

Regards

 

[bhallaji]

Both r on fire..............what is ahead in these two CALL options ?

Congrats! You are quite lucky, it is in overboughtzone so will still not enter.

Regards

Ghosh Sir,

Is moving average crossover with 20 day and 50 day averages a good indicator to determine if a stock is in overbought\oversold zone?

rgds,
bhalla

 

[stockBond]

Ghosh Sir,

Is moving average crossover with 20 day and 50 day averages a good indicator to determine if a stock is in overbought\oversold zone?

rgds,
bhalla

use RSI indicator

 

[aby09]

sir, I am new to this. A very good thread. Thank u very much. but can u pls tell me what " out-of-money & in- money means? 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 5100
Support at 5022

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