Option Buy Recomendations

[ghosh_ak34]

Dear ghosh,

What is ur call on stocks for the next week?
Which stocks would give profits for intraday (keeping in mind tht last week of september is the close of quarterly 2), is it the right time to invest or shall i wait till octber starts i.e., quarter 3 starts.
I like to trade on short term basis.

eagerly waiting for ur reply.

Dear Kalyangriet,

I will not prefer trading in stock options till market settles down and shows a trend either up or down for past 15days.

Regards

 

[kalyangriet]

Dear Kalyangriet,

I will not prefer trading in stock options till market settles down iand shows a trend either up or down for past 15days.

Regards

Hi ghosh,
Thanks for the quick response,
So u mean to say that jus keep an eye on market until it settles down and till then no trading...

 

[ghosh_ak34]

ghosh sir ,

I have heard from someone that you are an expert in options , i had bought 4 lots of oct4600CE at 33 ( OTM because i am learning options and want to take min risk with options ) i sq off 2 lots at 68 and have remaining 2 with me. What would you suggest to me sir , dow closes 300+ even yesterday ?? Should i sell on monday or hold it as i have time till oct.

Dear Coolboy,

Nifty is still not out of bearish phase as per past 15 days trend. So, its better to exit from the OTM calls whenever you get an oppourtunity.

Keep booking profits on regular intervals and always hedge your positions by 40-50% of the cost of your positions.

Currently, 4600 seems remote. there is resistence at 4400. Unless it crosses this its difficult to comment on 4600.

Regards

 

[praveen taneja]

Dear Coolboy,

Nifty is still not out of bearish phase as per past 15 days trend. So, its better to exit from the OTM calls whenever you get an oppourtunity.

Keep booking profits on regular intervals and always hedge your positions by 40-50% of the cost of your positions.

Currently, 4600 seems remote. there is resistence at 4400. Unless it crosses this its difficult to comment on 4600.

Regards

ghosh sir want to know one thing i always read ur post with curosity n watch all levels but fear to enter in trade according to that bcoz at 4200 buying 4500 call n at 4500 buying 4100 put really need big heart n good cash can u suggest something of less amount for the people like me so with the amt v hav v can trade according to ur strategy pls suggest if u hav any idea thnx in adv

 

[nandasn]

Dear Mr. Ghodh,

I am regularly following ur strategy but I need certain clarifications:-

1. As per the 1st strategy where (R1-S1)>=300 and<400 then do we Buy both Call and Put at S1 and R1 respectively at the same time i.e we buy both call and put simultaniously when the trend is more or less than 20 points at any time frames as per the strategy.

2.How do we exit the transection when there is stop loss triggered in one side of the transection or when we achive our Profit target in one side of the transection i.e Call or put OR Do we exit both side of the positions when any one of the conditions are met?

3. Kindly explain the exit strategy for sideways strategy when the position is hedged as per Q.2. above.

Thanks

Nanda

 

[ghosh_ak34]

ghosh sir want to know one thing i always read ur post with curosity n watch all levels but fear to enter in trade according to that bcoz at 4200 buying 4500 call n at 4500 buying 4100 put really need big heart n good cash can u suggest something of less amount for the people like me so with the amt v hav v can trade according to ur strategy pls suggest if u hav any idea thnx in adv

Dear Praveen,

We need to buy calls at lower levels and puts at higher levels as per strategy posted in 1st post. however, you can adjust the R1 and S1 by 100 pts. i.e if R1 = 4500 then, you can adjust it to 4400 and similarly if S1=4200 then, you can adjust it to 4300 based on your comfort levels. but remember to maintain strict SL. But this adjustment could be risky and not a recomended one so, one needs to be careful.

Regards

 

[praveen taneja]

Dear Praveen,

We need to buy calls at lower levels and puts at higher levels as per strategy posted in 1st post. however, you can adjust the R1 and S1 by 100 pts. i.e if R1 = 4500 then, you can adjust it to 4400 and similarly if S1=4200 then, you can adjust it to 4300 based on your comfort levels. but remember to maintain strict SL. But this adjustment could be risky and not a recomended one so, one needs to be careful.

Regards

yes sir i tried that on paper trade at least a week n in that stop loss hit most of the time.. n on buying w/o strategy when buy call mkt go down n when buy put mkt up

 

[ghosh_ak34]

Dear Mr. Ghodh,

I am regularly following ur strategy but I need certain clarifications:-

1. As per the 1st strategy where (R1-S1)>=300 and<400 then do we Buy both Call and Put at S1 and R1 respectively at the same time i.e we buy both call and put simultaniously when the trend is more or less than 20 points at any time frames as per the strategy.

2.How do we exit the transection when there is stop loss triggered in one side of the transection or when we achive our Profit target in one side of the transection i.e Call or put OR Do we exit both side of the positions when any one of the conditions are met?

3. Kindly explain the exit strategy for sideways strategy when the position is hedged as per Q.2. above.

Thanks

Nanda

Dear Nanda,

Ans 1: I never advocate to buy both calls and put at the same time. Buy calls or puts as per the trend. Please read the 1st post again.

Ans 2: If your SL of call is hit exit the call. And hold the profit making put with trailing SL=10% of CMP.

Ans 3: Same as 2.

Regards

 

[ghosh_ak34]

yes sir i tried that on paper trade at least a week n in that stop loss hit most of the time.. n on buying w/o strategy when buy call mkt go down n when buy put mkt up

Dear Praveen,

Thats the reason I do not reco. any deviations from my strategy. Lets not gp for cheaper ones just because its cheap. Concentrate on strategy and trade as per this. To gain confidence do paper trading for 3 months and see the results. Do paper trade as per your pocket and see if it gives profit.

Regards

 

[nandasn]

Thanks for the prompt reply Mr Ghosh .

I was a little confused regarding entry as per my Q.1 because as per the strategy given on page 1 of the thread it says "BUY CALL AT S1 AND PUT AT R1" that's why the confusion.

Ans. to my Q.2 seems fairly clear now and I assume it applies to "SIDEWAYS STRATEGY"as well when we have hedged the position and carry forwarding the position next day.

Regards,

Nanda