Option Buy Recomendations

[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:

Resistence at 4182
Support at 4045

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 strategy posted in 1st post of this thread.

Regards

 

[ghosh_ak34]

Hi Ghosh,
I want ur opinion about a strangle that i bought on Wednesday as closing strategy. Nifty was looking set to break 4050 levels and head lower. I bought 1 lot each of 4000 put and 4200 call for a total premium of 212. On friday, post the last half an hour of sell off, the strangle was worth 184. Today, at closing, the strangle was still worth only 184. i wanted to make the delta neutral, so i bought another 4200 call. Now the cost of my options is 252.

So now i have 2 lots 4200 call and 1 lot of 4000 put for a total value of 252. The last traded price of the options combined was 215. How would u recommend me to proceed with it.

Dear Linkon7,

Sorry, I missed your mesg. today morning.

I hope you might have exited from all positions today in profit.

You have not done any wrong in buying another 4200 call. When Nifty is in oversold zone its better for positional traders to have more no. of At money or near money call and hedge the same with lesser no. of At money or near money puts.

In all its a (bullish) straddle. I mean buying 2 calls of 4200 and 1 put of 4200.

Today it has bounced. And charts shows Nifty will trying to cross 4200 tomorrow and if it succeeds then, we might see higher levels.

So, if you are still holding your position then, its okay to hold it for a day or 2.

Normally, I prefer not to hold any straddle for more than 3-4 days or SL=20% of total setup and target for the setup = 40% or so. Which ever is met first.

Hope this helps.

Regards

 

[djsinha]

Hi all

I've tried writing NIFTY 4100 put trading @ 95 with Sharekhan today to take advantage of time decay. But, it's giving an error message "ALERT!!! WRTING OPTIONS NOT ALLOWED FOR THIS GROUP". Can anybody tell what the problem is?

NB: I currently have around Rs 66k cash in my account, which I believe covers the margin requirements adequately.

Regards
DJ

 

[optionstrader]

Dear Optionstrader,

Sorry to learn that you are at loss. Well what to say now, hold till recovery starts and then, start averaging it.

Regards

Hi Ghosh Sir,

Kindly check the prices now :

GSPL 54.80
MY BUYING PRICE 57
Quantity 1000 shares

SCI 124.50
MY BUYING PRICE 127
Quantity 600 shares


OMNITECH 76.45
MY BUYING PRICE 98
Quantity 500 shares

Ghosh Sir, Since SCI & GSPL are now near my buying price
please guide, weather i shall average them , hold them or exit them,
or weather i shall sell half the quantity of the shares that i hold.

Please also guide for Omnitech.

Awating your quickest response,


Thanks & Regards,
Optionstrader

 

[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:

Resistence at 4300
Support at 4165

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 strategy posted in 1st post of this thread.

Regards

 

[ghosh_ak34]

Hi all

I've tried writing NIFTY 4100 put trading @ 95 with Sharekhan today to take advantage of time decay. But, it's giving an error message "ALERT!!! WRTING OPTIONS NOT ALLOWED FOR THIS GROUP". Can anybody tell what the problem is?

NB: I currently have around Rs 66k cash in my account, which I believe covers the margin requirements adequately.

Regards
DJ

Dear djsinha,

Initally, put writing is blocked by the broker. You need to talk to broker for unblocking put writing.

Normally, put writing is more risky so brokers keep put writing blocked by default.

Regards

 

[ghosh_ak34]

Hi Ghosh Sir,

Kindly check the prices now :

GSPL 54.80
MY BUYING PRICE 57
Quantity 1000 shares

SCI 124.50
MY BUYING PRICE 127
Quantity 600 shares


OMNITECH 76.45
MY BUYING PRICE 98
Quantity 500 shares

Ghosh Sir, Since SCI & GSPL are now near my buying price
please guide, weather i shall average them , hold them or exit them,
or weather i shall sell half the quantity of the shares that i hold.

Please also guide for Omnitech.

Awating your quickest response,


Thanks & Regards,
Optionstrader

Dear Optiontrader,

GSPL 54.80 <--- Hold till 59
Bought at PRICE 57
Quantity 1000 shares

SCI 124.50 <---- Hold till 131
Bought at PRICE 127
Quantity 600 shares


OMNITECH 76.45 <---- Hold and avg. it
Bought at PRICE 98
Quantity 500 shares


Regards

 

[manoranjan panda]

Ghosh Sir
Need your advice on PE 4100 August purchased at 170.
Should I hold/sell at a loss?
SL/Target?
-Panda

 

[ghosh_ak34]

Ghosh Sir
Need your advice on PE 4100 August purchased at 170.
Should I hold/sell at a loss?
SL/Target?
-Panda

Dear manoranjan,

See for options SL and target are interday only. You should hedge your positions before you call it a day or exit from the position.

SL doesn't carry any meaning as it could get carried away with next days gap up or down opening.

Well you can have interday SL = 30% and target as = 140% of your buy price .

Regards

 

[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:

Resistence at 4290
Support at 4175

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 strategy posted in 1st post of this thread.

Regards