Option Buy Recomendations

[vajjayaraj]

Hello Sir,

First of all thanks a lot for this thread and sharing your knowledge on options trading. I read your post head to toe and learnt a lot of things. I have 3 specific questions.

1) You are posting suggestions for both Nifty Options as well as Nifty Futures (Hedged with Options). Based on your experience so far, can you tell me which one is proving to be more profitable and what is the Success Rate?

2) How do you arrive at the R1 and S1 for Nifty Futures Trading. I tried with the formula in Post 1, but mine is deviating from yours?

3) Say, Nifty at 9:35 - Nifty at 9:05 > 20, I buy Call at S1. Now if Nifty at 10:30 - Nifty at 9:35 is -10 (Change in direction), I should not take any trade...but should I Sell my Call? Obviously I can hold on to it SL or till 3:25 and Sell it there if I'm a pure Intraday Trader or Hedge it with a call and carry on to tomorrow. But based on your experience, which one proved more profitable???

By reading your past replies, I understood that you don't like sharing details about your trade, but I still cannot hold my curiosity asking about the success rate of this strategy. I can understand if you don't want to answer this question or you suggest me to Paper Trade for 3 months and find by myself.

Regards,
Jay.

 

[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 5389
Support at 5320

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 check strategy posted in 1st post of this thread.

Regards

 

[ghosh_ak34]

Dear vajjayaraj,

1) You are posting suggestions for both Nifty Options as well as Nifty Futures (Hedged with Options). Based on your experience so far, can you tell me which one is proving to be more profitable and what is the Success Rate?

Ans: As said earlier one needs to do paper trade it for 3 month and then, if its profitable then, go ahead. I have posted my strategy as I have tested it myself successfully and it has given me positive results.

2) How do you arrive at the R1 and S1 for Nifty Futures Trading. I tried with the formula in Post 1, but mine is deviating from yours?

Ans: There is no fix formula to calculate this as it depends on global clues and market movements, HIV, experience etc.

3) Say, Nifty at 9:35 - Nifty at 9:05 > 20, I buy Call at S1. Now if Nifty at 10:30 - Nifty at 9:35 is -10 (Change in direction), I should not take any trade...but should I Sell my Call? Obviously I can hold on to it SL or till 3:25 and Sell it there if I'm a pure Intraday Trader or Hedge it with a call and carry on to tomorrow. But based on your experience, which one proved more profitable???

Ans: It depends on ones risk appetite. Once can hold it till SL or book loss. See if R1 - S1 is less than 300 or greater than 400 then, its better not to trade using this strategy as its risky. So, always suggest to paper trade before taking real trades.


Regards

 

[vajjayaraj]

Thanks a lot Sir, for your prompt reply. I'm really happy to see you keeping this thread alive for almost 3 years now. Only a couple of other threads are active this long in Traderji.

 

[rrmhatre72]

If you haven't bought Unitech already, don't do it now. Call premium have increased already from 2.50/2.75 to 3.50. Moreover Stoch is showing that Unitech would land in Overbought catogery in a short while.

Hi Prasham,

How to evalute if share is in overbought categery or not?
Also let me know how do you evaluate if premium is appropriate for any share?

Regards,
Rahul

 

[rrmhatre72]

Sir,

I am trying to update time wise nifty value,

Time----------Price--------Diff----------Trade--------put(5400)---------Call
09.05 AM------5362.25------0-------------No--------0-------------------0
09.35 AM------5330---------(-32.25)------Yes-------125.00--------------0( At 9.45 am)
10.00 AM------5334.05------4.05----------No--------0-------------------0
10.30 AM------5347.75------13.70---------No--------0-------------------0
12.30 PM------5355---------7.25----------No--------0-------------------0
03.00 PM

Position hedged by 5300 call @105

Regards
susobhan

Hi,
What is the outcome of above option bought?
Is this stratergy to be executed on Monday only or I can use it on anyday of week using P s1 & r1 values?

Regards,
Rahul

 

[susobhan]

Hi,
What is the outcome of above option bought?
Is this stratergy to be executed on Monday only or I can use it on anyday of week using P s1 & r1 values?

Regards,
Rahul

Sir
Positions are still opened

Regards
susobhan

 

[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 5350
Support at 5310

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 check strategy posted in 1st post of this thread.

Regards

 

[gb333]

Hello sir,
i have a query.i have take position 1lot in mphasis april future @ 661. Now i have fear that market may fall down.so in that situation how can i safeguard my trade. I have 20000 available in my ledger. Kindly advice.

 

[rvramana]

When you are into future trading..you must have to place stop loss otherwise you may be unlimited loss/profit. Better calculate your risk and place a stop loss order accordingly. All the best.