Option Buy Recomendations

[sylar123]

Here is the screenshot of the trades taken today. Overall the opening and given its expiry week and that markets have considerable shorts in it - I was not prepared to go bearish. The opening was pointing to a higher opening so I had made up my mind to go long today and was looking for enteries.

Took 3 trades (Did end up taking 1 PUT but was not comfortable so closed it out fast).

Trade 1

After the momentary gap-down markets started going up in 15 mins and that trend was holding above the 20 and 50 SMA. What does that indicate ? That on balance people are betting on NIFTY going up. So I entered at a point I thought was good enough (Shown on the chart).

BUY JAN 5600 CE @ 126.55 , COVERED AT154.25 , STOPLOSS was at 110.

Points gained 28, at the cost of 16 points -risk reward 1: 1.75

Trade 2

This is how the HUMAN MIND plays tricks. I had decided to not take a PUT trade today unless things were drastically different. They werent. But at ht higher range at 5750 I saw that NIFTY was resisting , so I took a PUT trade and was continuously uncomfortable so I just closed it.

I should not have taken this Trade I think. Anyways

BUY JAN 5800 PE @ 83 , COVERED AT 86 , STOPLOSS was at 80.

Points gained 3, at the cost of 3 points - risk reward 1:1

Trade 3

Once again found an entry (After ICICI results were ok) to go long.

BUY JAN 5600 CE @ 138. COVERED AT 147, STOPLOSS was at 130.

Points gained 9, at the cost of risk of 8 points - risk reward 1:1.

Overall I was only happy with my 1st trade. I was thinkng of carrying the 3rd trade into tomorrow - but I stuck to my rules. So no regrets if tomorrow is gap up.

Chart here...

Hi TJ,

Some questions, do you use the SL facility while ordering a trade or you wait and close the trade manually when it hit SL?
Also how do you monitor the SMA's? I mean where do you look for charts? My broker is HDFC sec and they do not provide any charting facility so I am stuck at nseindia.com which does not show SMA. I could use yahoo or google finance but they have considerable delay

I have decided to stay, watch and learn before entering into any trade after my initial trades. .

 

[TraderJunkie]

Hi TJ,

Some questions, do you use the SL facility while ordering a trade or you wait and close the trade manually when it hit SL?
Also how do you monitor the SMA's? I mean where do you look for charts? My broker is HDFC sec and they do not provide any charting facility so I am stuck at nseindia.com which does not show SMA. I could use yahoo or google finance but they have considerable delay

I have decided to stay, watch and learn before entering into any trade after my initial trades. .

All SL figures are put in once the trade is taken. I do not manually monitor the SL. Its dangerous to do that since the HUMAN MIND keeps saying, oh let me wait to recover my loss a bit, oh letme wait and that never works. So I don't mind taking a small LOSS to get out of a wrong trade to live to enter the right trades .

Charting - I use the basic NICE technicals provided by NSE. I just use the GOOGLE / YAHOO charts for the screenshots here, since I like their colors - the white background.

Have fun

TJ

 

[VJAY]

All SL figures are put in once the trade is taken. I do not manually monitor the SL. Its dangerous to do that since the HUMAN MIND keeps saying, oh let me wait to recover my loss a bit, oh letme wait and that never works. So I don't mind taking a small LOSS to get out of a wrong trade to live to enter the right trades .

Charting - I use the basic NICE technicals provided by NSE. I just use the GOOGLE / YAHOO charts for the screenshots here, since I like their colors - the white background.

Have fun

TJ

Dear TJ
What the basis of your stoploss?is it just per % or else?

 

[TraderJunkie]

Dear TJ
What the basis of your stoploss?is it just per % or else?

Its a % yes. However a SL (in my view) needs to be taken in context with the entry point. If the entry point is in the middle of a strong move, then a small SL might be sufficient. Also if you enter a trade after a breakout or trend formation (trading above 100 DMA, higher top, higher bottoms formation, head-shoulder etc) then a smaller SL is also ok.

We do not want our SL to be hit everytime at the same time you want the trade to have space to breathe. So its a tough thing. Like on Friday my winning trade turned into a loser due to a sudden drop of 45 points... THE SL was hit..

 

[DanPickUp]

Hi guys

Will not have time to post in the next future ( 3 or even 4 months ). Will be back as soon as the situation has settled down. Nothing bad, just some new exiting and new life experience. Trading is not all in live. It is good to make money and what will you do with that money if you made it ?

Until than, take care and thanks for you friendliness. Hope, I did give you some good stuff as you did good to me.

DanPickUp

 

[TraderJunkie]

Hi guys

Will not have time to post in the next future ( 3 or even 4 months ). Will be back as soon as the situation has settled down. Nothing bad, just some new exiting and new life experience. Trading is not all in live. It is good to make money and what will you do with that money if you made it ?

Until than, take care and thanks for you friendliness. Hope, I did give you some good stuff as you did good to me.

DanPickUp

Hope all goes well. Take care Dan !

 

[deja_vu_rc]

@TraderJunkie

Hi..I am new to trading so i am sorry if my question looks childish...but in one of the posts you mentioned "programmed trading"..can you please tell what is that?

Thanks and Regards
DV

 

[TraderJunkie]

@TraderJunkie

Hi..I am new to trading so i am sorry if my question looks childish...but in one of the posts you mentioned "programmed trading"..can you please tell what is that?

Thanks and Regards
DV

Ignore that part as far as I know, one can't do programmed trading unless you have access to a bloomberg terminal - all big international banks these days do automated trading.

The traders sit through painful tests of various complex systems (rules of trading based on data analysis) and then have a programmer write out that system. They then deploy that system and just watch over it if they need to intervene. Not many professional traders at big banks do manual trades anymore.

The dream for every trader is to have a programming access to a terminal that can do BUY and SELL calls without manually entering the calls. That will happen sooner than later. Then we will be able to run our algorithms on our computers and trigger BUY , SELL calls automatically.

But anyways - we aren't there so lets not talk about it too much

Good trading day today guys ? The credit policy actually stumped most I guess. I didn't trade today because there was just no way to tell which way the markets would go...

TJ

 

[pranay1986]

Ignore that part as far as I know, one can't do programmed trading unless you have access to a bloomberg terminal - all big international banks these days do automated trading.

The traders sit through painful tests of various complex systems (rules of trading based on data analysis) and then have a programmer write out that system. They then deploy that system and just watch over it if they need to intervene. Not many professional traders at big banks do manual trades anymore.

The dream for every trader is to have a programming access to a terminal that can do BUY and SELL calls without manually entering the calls. That will happen sooner than later. Then we will be able to run our algorithms on our computers and trigger BUY , SELL calls automatically.

But anyways - we aren't there so lets not talk about it too much

Good trading day today guys ? The credit policy actually stumped most I guess. I didn't trade today because there was just no way to tell which way the markets would go...

TJ

Well today was a good day considering i had the conviction of the direction after the credit policy got announced.

Bought 5700 PE Feb was hoping a downfall of 100 points existed after went till 5705 seemed it was having support at 5700.

Buy 5700 PE Feb - 73.75
sell 5700 PE Feb - 114

Unfortunately entered one more trade.. unnecessarily as usual of 5700 CE Feb

Buy 5700 CE Feb - 118
Currently Holding. couldnt exit because of the brokerage and till the time the margin was achieved market closed lol

Will post my rules of a system which i am trying to develop to keep myself under check.. Because i am myself being novice trader have learnt somethings and definitely would like to share that ..Will update that sometime later today itself.

Will also try to post all trades that i take as i also love trading in options..
Just want to be critcized and suggested so that i can myself under check and develop a system which can be followed irrespective of any circumstances.

Regards,
Pranay

 

[sumeetsj]

:lol:



Well today was a good day considering i had the conviction of the direction after the credit policy got announced.

Bought 5700 PE Feb was hoping a downfall of 100 points existed after went till 5705 seemed it was having support at 5700.

Buy 5700 PE Feb - 73.75
sell 5700 PE Feb - 114

Unfortunately entered one more trade.. unnecessarily as usual of 5700 CE Feb

Buy 5700 CE Feb - 118
Currently Holding. couldnt exit because of the brokerage and till the time the margin was achieved market closed lol

Will post my rules of a system which i am trying to develop to keep myself under check.. Because i am myself being novice trader have learnt somethings and definitely would like to share that ..Will update that sometime later today itself.

Will also try to post all trades that i take as i also love trading in options..
Just want to be critcized and suggested so that i can myself under check and develop a system which can be followed irrespective of any circumstances.

Regards,
Pranay

This is my first post in this thread.

What would be the scenario if you would have sold the same straddle ?

1 rule i have followed for quite a long time while trading in options is asking myself 2 times before entering any options trade - is this going to be good enough ?
Hence the question, what will happen if i sold Nifty 5700 Feb straddle.

Pls comment.