Option Buy Recomendations

[VJAY]

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

Dear Ghosh sir,
The same thing I missed from your post I read the post 1st many times.But the line "BUY CALL AT S1 AND PUT AT R1" very much confusing.If you give your strategy with examples (with the 1st post) it's better to understand quickly.This is only my personal think.
But your strategy working well.though some doubts comes in the way in entry.Also when trend reverse I confuse to what to do next?
Any way you answering all querries promptly.so thanks to your well managed system.
Regards & Thanks
VJAY

 

[ghosh_ak34]

Dear Ghosh sir,
The same thing I missed from your post I read the post 1st many times.But the line "BUY CALL AT S1 AND PUT AT R1" very much confusing.If you give your strategy with examples (with the 1st post) it's better to understand quickly.This is only my personal think.
But your strategy working well.though some doubts comes in the way in entry.Also when trend reverse I confuse to what to do next?
Any way you answering all querries promptly.so thanks to your well managed system.
Regards & Thanks
VJAY

Dear Vijay,

I have always stated that buy calls at S1 and puts at R1 as per the strategy posted in 1st post of this thread. Please do point out whats confusing in 1st post. I have also given examples in the 1st post.
I have stated the entry and exit strategy as well there, kindly read and do correct me wherever,I went wrong.

Please provide examples from that post which confuses you. Your valuable comments will certainly help me update the post accordingly. I want all of you to succeed so, I will provide my best possible help in trading this Nifty options strategy / system.

Regards

 

[rahul1983]

Hello Gosh Sir,

I have one dou't

When we do hedging , to carry the position next day, then where should we buy put / call for it

like suppose R 1 = 4500 and S 1 = 4100

then if the trend is positive / Up @ 3.15 and we are holding the Call @ S 1

and we need to hedge it to carry this position next day then do we need to buy
Puts @ R 1 for hedging or we can buy Puts near S 1 ( 4100 ) like 4100 / 4200 for hedging purpose

 

[rahul1983]

One more question Ghos Sir,

suppose we are holding Put and Cals both

R 1 = 4500 S 1 = 4100 for example

i mean say we bought Put first @ 10.45 and we are holding it with 30 % stop loss
and then we check trend @ 12.30 it became positive so we buy call @ S 1

not suppose the stop loss for both call and put is not triggered ( 30 % stop loss )
till the end and our position remains this way as it is naturally hedged so we dont hedge it again

here is my dout, next day when the market opens with gap up or down then it's ok one of the stop loss will get triggred , but if it opend flat and we chek the trend @ 10.45

then what should we do as we are already holding both put and call

what if it shows positive trend and what if it shows negative trend do wwe buy more put and call or we sell one of them or we wait for any one stop loss to get triggred

plz help ghos sie thanks
Rahul

 

[ghosh_ak34]

Hello Gosh Sir,

I have one dou't

When we do hedging , to carry the position next day, then where should we buy put / call for it

like suppose R 1 = 4500 and S 1 = 4100

then if the trend is positive / Up @ 3.15 and we are holding the Call @ S 1

and we need to hedge it to carry this position next day then do we need to buy
Puts @ R 1 for hedging or we can buy Puts near S 1 ( 4100 ) like 4100 / 4200 for hedging purpose

Dear Rahul,

Hedge it at R1 or S1.

Regards

 

[ghosh_ak34]

One more question Ghos Sir,

suppose we are holding Put and Cals both

R 1 = 4500 S 1 = 4100 for example

i mean say we bought Put first @ 10.45 and we are holding it with 30 % stop loss
and then we check trend @ 12.30 it became positive so we buy call @ S 1

not suppose the stop loss for both call and put is not triggered ( 30 % stop loss )
till the end and our position remains this way as it is naturally hedged so we dont hedge it again

here is my dout, next day when the market opens with gap up or down then it's ok one of the stop loss will get triggred , but if it opend flat and we chek the trend @ 10.45

then what should we do as we are already holding both put and call

what if it shows positive trend and what if it shows negative trend do wwe buy more put and call or we sell one of them or we wait for any one stop loss to get triggred

plz help ghos sie thanks
Rahul

Dear Rahul,

If you are already hedging then, no need to hedge. Maintain SL and hold on to the profit making position with trailing SL of 10% from CMP.

Regards

 

[rahul1983]

THANK Q Ghosh Babu

have a great weekend

 

[tradengrow]

Dear Vijay,

I have always stated that buy calls at S1 and puts at R1 as per the strategy posted in 1st post of this thread. Please do point out whats confusing in 1st post. I have also given examples in the 1st post.
I have stated the entry and exit strategy as well there, kindly read and do correct me wherever,I went wrong.

Please provide examples from that post which confuses you. Your valuable comments will certainly help me update the post accordingly. I want all of you to succeed so, I will provide my best possible help in trading this Nifty options strategy / system.

Regards

Dear Ghosh Sir,

Tusi great ho! I have never found a person so helpful like you, God bless you sir!

I salute you sir from very very deep of my heart.

---Anil

 

[vasanth_ece]

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

Hi Ghosh,

I cant understood the last point,how the adjustment be risky if we risky,if we adjust the positions?

Lets assume an example:

Suppose the market trend is positive and at around 10.30 AM lets assume this is the trend.Nifty Spot Price is:4350 @10.30 AM

CE@3900 trading at around Rs.500.
CE@4300 trading at around Rs.150.

If at 12.30 AM the market jumps another 100 points @4450 lets assume a 25% move in 4300 CE and 22% move in 4900 CE.(as i am seeing the percentage increase is high in In the Money compared to deep In the money)

So at 12.30 AM CE@3900 trading at 610 and CE 4300 trading at Rs.187.50.

So,if we maintain the stop loss and execute the trade accordingly how the adjustment be risky?

Please advice.

Reg
Vasanth

 

[ghosh_ak34]

Hi Ghosh,

I cant understood the last point,how the adjustment be risky if we risky,if we adjust the positions?

Lets assume an example:

Suppose the market trend is positive and at around 10.30 AM lets assume this is the trend.Nifty Spot Price is:4350 @10.30 AM

CE@3900 trading at around Rs.500.
CE@4300 trading at around Rs.150.

If at 12.30 AM the market jumps another 100 points @4450 lets assume a 25% move in 4300 CE and 22% move in 4900 CE.(as i am seeing the percentage increase is high in In the Money compared to deep In the money)

So at 12.30 AM CE@3900 trading at 610 and CE 4300 trading at Rs.187.50.

So,if we maintain the stop loss and execute the trade accordingly how the adjustment be risky?

Please advice.

Reg
Vasanth

Dear Vasanth,

These adjustments to R1 and S1 as per my trading strategy posted in 1st post is risky. I have tested it and found so. You need to work on real data of 3 months to testify this. Kindly test with real data for the three months and update here.

Regards