Option Buy Recomendations

[rajeabc]

Dear Ghosh Da,

Its my pleasure to read your posts.:thumb:

I have very little knowledge about futures and options.

I am not able to understand this strategy in full because of the following.

" If we are long in 1 lot nifty and hedging it with 1 lot put. and viceversa.
how are we going to make a profit. Please excuse me if my understanding looks novice. The rise in 1 lot nifty could be nullified by 1 lot put, isnot it?"

Or am I missing something serious detail?

I would be grateful if you could explain this with last 10 to 15 trades already done.

Hi ,

Sorry Mr Gosh , This Qs was for you but I am answering . This is one of the first thread which I followed when started option trading . Thanks.

Actually rise and fall in option/put are not the steep as they are derivatives .
For ex: If you go long @ 5237 (put 5300 is around 138) and if you want to square off you long at 5290 (put 5300 would be around 112 , am I right ?) so net profit will be 27 pts instead of 53 but your loss would also be protected.

 

[veluri1967]

Hi ,

Sorry Mr Gosh , This Qs was for you but I am answering . This is one of the first thread which I followed when started option trading . Thanks.

Actually rise and fall in option/put are not the steep as they are derivatives .
For ex: If you go long @ 5237 (put 5300 is around 138) and if you want to square off you long at 5290 (put 5300 would be around 112 , am I right ?) so net profit will be 27 pts instead of 53 but your loss would also be protected.

Rajeabc,

Thanx.

 

[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:

Resistance at 5272
Support at 5215


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

 

[ghosh_ak34]

Hi ,

Sorry Mr Gosh , This Qs was for you but I am answering . This is one of the first thread which I followed when started option trading . Thanks.

Actually rise and fall in option/put are not the steep as they are derivatives .
For ex: If you go long @ 5237 (put 5300 is around 138) and if you want to square off you long at 5290 (put 5300 would be around 112 , am I right ?) so net profit will be 27 pts instead of 53 but your loss would also be protected.

And when the near money or ATM put become OTMm it falls less so, less loss due to rise in Nifty future.

While booking profit, square off both the positions - Nifty future long and put.

Same is true with call and Nifty short combination.

Regards

 

[ghosh_ak34]

Dear Friends,

My weekly view:

Nifty looks bearish. It is about to break 20days EMA = 5229. Next level to watch out for is 5176 (50 days EMA). Will reco, an hold on OTM calls that were written last week. One can also hold short straddle and strangle till the breach of 5176 levels.

One can also go for Nifty put spread - Buy Nifty 5200 put and write Nifty 5100 put. With a SL= Rs 1000 per lot.

Regards

 

[v2kindia]

dear ghosh

posting in a thread and keeping it alive for almost two years. Hats off to u.:thumb: :clap:

and ur levels are doing good. i was checking with the past 90 days. it is mostly on strike. gr8

 

[vinustephen]

Dear Mr. Ghosh,

If I am not being too intrusive, can you please explain how you calculate daily support and resistance levels. What timeframe you use on the charts. your levels are almost always on the dot.

Vinu

 

[ghosh_ak34]

Dear Mr. Ghosh,

If I am not being too intrusive, can you please explain how you calculate daily support and resistance levels. What timeframe you use on the charts. your levels are almost always on the dot.

Vinu

Dear Vinu,

Thanks! There is no definite calculations involved. It all depends on global clues, Nifty volumes (low/high) around a price on daily charts, volatility, charts /TAs and bit of luck I would say that makes them close to next days Supp. & res.

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:

Resistance at 5285
Support at 5230


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

 

[aditya14]

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:

Resistance at 5285
Support at 5230


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

Support moving up in ur last 2 posts are those ema`s?