Option Buy Recomendations

[Reji]

hi vasanth,

Let me post the High,low and close for this week.

High ------> 4558
Low ------> 4200
Close -----> 4228

S1 = 4100
R1 = 4500

I think R1 - S1 = 400 , so it concludes we are not in sideways strategy.

Let Ghosh post the trading plan for next week as we are not into sideways strategy.

Ghosh check my calculation, correct it if I am wrong.

Regards

Hi trillian,

If the difference is greater than 400, tading to be carried out under sideway strategy {which is not the case here, though}.

Dear All,


Sideways strategy is as under, applicable when R1~S1 <300 or >400.

Regards

Regards

Reji

 

[swing_trader]

hi trillian,
thankyou very much for replying...actually you are right i have to read the whole thread to understand it clearly and sloving some doubts.
nywaz thankyou

 

[ghosh_ak34]

Dear M/s Ghosh and trillian,

It seems that R1- S1 is less than 400. {I'm not sure. I'm new to options. Have just completed reading the whole thread. }

S1= 2P - H = 4099.34
R1= 2P - L = 4457.34

R1-S1= 358, which is below 400.

Since the difference is between 300 and 400, can we go ahead with a call at S1 {4100} and put at R1 {4500} or either of them only?

One more query,

If the difference is between 300 and 400, trading of which does not come under sideway strategy, do we have to check the trend at 10:30-10:45 and again at 3:00-3:15 PM?

Regards

Reji

Dear Reii,

Your calculations are correct. This week we got R1~S1=358 (<400). Which is within the 300-400 range. The trend seems bearish.

So, buy atleast 2 puts at R1 and buy atleast 1 call at S1 to hedge your positions by EOD. Keep checking the trends at 10:30-1045AM, 12:30 and 3:00 PM to ascertain the confirmation of new emerging bearish trend.

Keep tight Stop losses and trailing SLs to trade all your positions.

Regards

 

[ghosh_ak34]

hello ghosh sir
i am totally novice about options but really desperate to learn it...can u please answer my simple question..how to calculate weeks high low and close
please help
thankyou

Dear Swing_trader,

You can check the Nifty Spot prices at yah00 or icharts. Modays open is week open and Fridays close is weeks close.

Regards

 

[trillian]

Dear ghosh ,

I thought it was R1 - S1 is 4500 - 4100, but later on studying your comment on reji's post I have understood that it should be only R1 and S1 which we got not to take nearest 100th place. Thanks for spotting my mistake.

Thanks.

 

[ghosh_ak34]

Dear ghosh ,

I thought it was R1 - S1 is 4500 - 4100, but later on studying your comment on reji's post I have understood that it should be only R1 and S1 which we got not to take nearest 100th place. Thanks for spotting my mistake.

Thanks.

Dear Trillian,

Your thought was correct, the R1 and S1 for trade next week is 4500 and 4100 only, the nearest 100. Calculated R1 = 4457.333 and S1 = 4099.333.

Regards

 

[trader999]

Ghosh Sir,
I bought a Nifty 4300 call for 128.Will Nifty fall further or will there be a pullback to 4400 level by weekend?


Regards

Ram

 

[ghosh_ak34]

Ghosh Sir,
I bought a Nifty 4300 call for 128.Will Nifty fall further or will there be a pullback to 4400 level by weekend?


Regards

Ram

Dear Trader999,

Nifty seems bearish next week. Maintain a strict SL= 90 for the 4300 call and buy 2 puts at 4500.

Regards

 

[awachat]

Hi All,

I am atatching week 38 Data. Please check attachment.

 

[VJAY]

Hai Ghosh,
I read this complete thread since couple of days and thanks for creating this wonderfull thread.I am going to paper trade from 2marrow as per your strategy.
I have one querry.How can we use same strategy in stock options.I hope you
would give me the reply.
Regards
VJAY