Option Buy Recomendations

[VJAY]

[/URL] Uploaded with ImageShack.us[/IMG]

 

[fabrics]

Can someone tell me how to calculate/estimate time decay value in calls & puts

 

[rrmhatre72]

Can someone tell me how to calculate/estimate time decay value in calls & puts

currently Nifty is trading at 5475

Aug 5400CE is trading at 75
Sept 5400CE is trading at 160

Every option has Intrinsic value + time value
In above e.g 5400CE has intrinsic value of 75 (current Nifty price - Strike price) = 5475-5400.

This means Aug CE has only intrinsic value & zero time value.
Where as Sept 5400CE has intrinsic value of 75 + time value of 85 = 160.

This because Aug series is expiring today & no time value is left

Similar logic can be applied for put in reverse way

 

[fabrics]

currently Nifty is trading at 5475

Aug 5400CE is trading at 75
Sept 5400CE is trading at 160

Every option has Intrinsic value + time value
In above e.g 5400CE has intrinsic value of 75 (current Nifty price - Strike price) = 5475-5400.

This means Aug CE has only intrinsic value & zero time value.
Where as Sept 5400CE has intrinsic value of 75 + time value of 85 = 160.

This because Aug series is expiring today & no time value is left

Similar logic can be applied for put in reverse way

Thank you very much for ur prompt & informative reply,WHICH IS VERY MUCH APPRECIATED

 

[VJAY]

[/URL] Uploaded with ImageShack.us[/IMG]

 

[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 5500
Support at 5450

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]

Dear Vijay,

Will wait for another day or two to check for this flatness. Then, will start writing near money straddle i.e 5500

So, far as our Indian market is intact we can see it work.

Regards

 

[VJAY]

[/URL] Uploaded with ImageShack.us[/IMG]

 

[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 5460
Support at 5350

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

 

[VJAY]

[/URL] Uploaded with ImageShack.us[/IMG]


Dear Ghosh sir,
how we book profit if we trade in nf?is same as the method we use with options..?here price not come near daily support(5350) and also @3-15 sell triggered..(suppose if we entered @09.35)..please give some light on profit booking & stop loss for the trades NF+ATM call/put....