Option Buy Recomendations

[ghosh_ak34]

Dear Sir,

When would you usually reccomend to exercise an option and why?

Dear naharchetan,

When there is no liquidity and one wants to exit from the position.

Regards

 

[ghosh_ak34]

Dear Sir,

Any strategy that we can use from the 20th till the end of the month?

Dear naharchetan,

One can write options after 20th of the month, but this reco. only for matured opttion traders. As its very risky to write options,

Regards

 

[prasham]

Ghoshbabu,

Isn't 20th too late? I mean in most months expiry is around 25th and hence when just 4-5 days are left the values of current month options are very low. Writing low value options is pretty risky. Isn't it?

I haven't tried my theory but according to my understanding writing options of current month's far OTM Calls/Puts by 15th of the month with stoploss of around 25% could be tried profitably. Please advice.

 

[naharchetan]

Dear Sir,

Hopefully my last question for the mean while Is there a strategy/book/webiste that I can refer to; to write options after the 20th?

Best regards,

Naharchetan

 

[ghosh_ak34]

Dear Sir,

Hopefully my last question for the mean while Is there a strategy/book/webiste that I can refer to; to write options after the 20th?

Best regards,

Naharchetan

Dear Naharchetan,

One could write options before 20th of the month as well, have said to write after 20th of the month as risk of loss reduces. Since you are new to it so to play safe , have said so.

Option trading is of many types, please refer to 888options dot com to start with. There are good threads in traderji on options -writting which you can also refer to. So, would prefer you to first understand the options before venturing into it.

Have seen many traders loose money faster by writing options if they do not hedge their posiitons properly.

option writing needs lot of knowledge about market.

Regards

 

[gb333]

Hi Ghosh Sir
I have JP ASSO APRIL Fut 1lot @ 155..and Nifty MARCH Fut 1lot @ 5253.. how can i safeguard my position?

Thanks

 

[prasham]

On basis of my above calculation I've opened two spreads as below (Paper Trades):

a) Bought Call @ S1 & Put @ R1
Bought CE 5200 & PE 5300

b) Bought Put @ S1 & Call @ R1
Bought PE 5200 & CE 5300

Which of the above two is better and why?

There were the two (paper) trades that I had carried out on 22nd March (Last monday before 4 days). Closing of Nifty on the previous Friday was around 5260 levels and the price for the above options were as below:

CE 5200 Apr - 160
PE 5300 Apr - 129
Total Value - 289

PE 5200 Apr - 89.5
CE 5300 Apr - 103.5
Total Value - 193

Today Nifty has closed on almost the same level but the price of Apr options have fallen as below...

CE 5200 Apr - 146
PE 5300 Apr - 112
Total Value - 258
Loss of value - 31

PE 5200 Apr - 72
CE 5300 Apr - 87
Total Value - 159
Loss of value - 34

Inspite of nifty being at the same levels value of all these calls & puts have reduced more or less. Is this a standard rule? Can some experts please shed some light on the matter.

If the above is a standard rule, can one profitably sell few calls and puts of "near money values" of next month, on the last monday before the expiry? Ofcourse a stop loss of around 15% is required IMO.

 

[optionstrader]

Hi Ghosh sir,

How are you ?

Hope to see you in good health.

Ghosh Sir,

Since i have been invested in some stocks since November last year, as usual i need your guidance, weather shall i keep holding, exit or add more.

These stocks have not performed at all. The prices were the same as they are now even if Nifty is at 5250 now.

UNITEC 500 SHAES AT 88
LLLOYD ELECTRICALS 500 SHARES AT 62
NAKODA TEXTILES 2000 SHARES AT 15
EVINIX INDUSTRIES 2000 SHARES AT 5
FLAWLESS DIAMONDS 2000 SHARES AT 3.50

Ghosh Sir, i wanted to ask, weather can we expect some good movement in them, when the resouts come out.

If you say, i can add more to bring the average down.

Kindly guide, weather shall i hold, exit or add more.

Awaiting your quickest response,

Thanks & Regards,
Rajat Gupta

 

[ghosh_ak34]

Hi Ghosh Sir
I have JP ASSO APRIL Fut 1lot @ 155..and Nifty MARCH Fut 1lot @ 5253.. how can i safeguard my position?

Thanks

Dear gb333,

Nifty March fut has expired. JP Associate - Not much upside on cards, so try to make an exit OR

Write 160 CA - 2 lots.(CMP 4.8)

Exit from both future and 160 CA write (a) when underlying moves above 155 (b) when underlying moves below 147.

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 5275
Support at 5212

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 check strategy posted in 1st post of this thread.

Regards