Option trading strategies that i hope will work.

[detrich]

Here I am trying to work on simple, no fancy, option strategies to maximize output and try to look at them and try to answer option theoritical and practical questions from beginers. Free feel to contact me any time.

 

[detrich]

my current startegy is as follows.


Selling Nifty Call-4100 which will cost me-28700+280(brokerages and taxes etc)=28980+20500(as a safety hatchet incase my margin is eaten up).CMP of this contract is 128. So atleast i expect to get 5000-6000 out of this.Because I am expecting this contract to expire worthless.

Buy a Nifty Put-4000 @ 185.20*50= 9260+150=9410.
Total Investment-28980+9410=38390.
I expect Nifty to go down below 3600 mark.

So let us wait and watch how this pans out. This was carried out day before yesterday.
and it clicked

 

[detrich]

At the close of market the Put-4000 is trading at 277. That means an unrealised profit of 92/unit or 4600/lot. Now it is time to reflect back and get a strategy for tommorow. From what we saw today it was really bad. I expect a small relief tommorow or for two days(Wensday). What has been confirmed is that market is no where near bottoming out. Tommorwo if the market manages to stay above the 3790 mark(Around this mark i will buy a 4000-Call). Then I will buy a call option. And wait for the nifty to reach at 3850-level. If it falls slides further then I do not think i have anything to worry(which according to me is more or less going to happen) and as for the range that you always look out Arnav are 4000-3550 for this month. Downgraded from yesterday's 4200 on the upside. So CHEERS people hope nobody has suffered anything in this fall.

 

[detrich]

I have already posted this messages elsewhere in thread i have forgotten about it. But feel free to querry me about anything here. Except ofcourse for brokers and brokerages. Which is just not my strongest fort. I am here to give strategies that will make brokerages look very insignificant.

 

[detrich]

Since the bailout plan is off the track. Gear up for the grim march to 3500 and below.

 

[detrich]

Well since everything is going good. I do not think I have to worry about anything here. There is just no need for me to get a collar to protect my current positions.

 

[detrich]

I had over-etimated the impact of the bailout plan rejection by US congress. It seems the market in past weeks have already done that. Currently looking at nifty I am tempted to go for the CE-3900 OCT@ Rs.148. Because 3795 is a strong support level. But then it was broken yesterday. Well I will just stay put. Wait for nifty to get past that mark in few mins. See u in few minutes.

 

[detrich]

Currently with Nifty going up. I m buying it CE-3900 @ Rs.150. And sell it at somewhere in the 3850-region.

 

[detrich]

While looking at charts. I have found ACC and SBI very intresting. i think i am planning to buy both ACC and SBI and accumulate at every fall.
1) ACC despite of the slide in market ACC has shown a great strength at 600-610 and looks poised to take a swift uptrend. In coming months i think it would be great stock to hold on to. So for starters,due to dearth of money I am not entering this trades but i am strongly recommending to buy in cash because the options are not looking that good today. With a price Target of 871.65 and stop loss of 550. CMP-597.

2)SBI- currently looking very strong and I just love it's charts. So this is also what i would like to recommend. With a target-1815 and stop loss of 1350, CMP-1421. Sure bet winners.

 

[detrich]

and yes sorry for the blooper. I forgot to add the option position to look in SBI:d.

Primary I have charted a direction for this instrument. So i will ofcourse buy an ITM. Because they are the safest in the volatile market like ours and further more with charts looking so good i am tempted to go for writing a long term put option on SBI and yes before investing in option of a instrument always remember to check the past liquidity. Since in SBI currently writing a put does not look such an attractive option. So i will leave thsi out.

so that will work something like this:-

Buy CA-1410 SBI OCT 29 @ Rs.92/unit and with lot size 132 it would be 12144+100 (brokerages and taxes)= 12244.