Stocks To Keep A Close Eye On
- Thread starter SavantGarde
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SG bro.. A small question,yet very serious...
Could you please work explain here, taking SBI as an example of what i stated in PM, Shorting Put options? What shortfalls are there in doing so?
I could not understand, what do you mean by.." I will get a separate Assignment contract note for it"
And finally.. i need your help to look at my portfolio that i have given here.. this week end.. and request your suggestions pertaining to that.
Could you please work explain here, taking SBI as an example of what i stated in PM, Shorting Put options? What shortfalls are there in doing so?
I could not understand, what do you mean by.." I will get a separate Assignment contract note for it"
And finally.. i need your help to look at my portfolio that i have given here.. this week end.. and request your suggestions pertaining to that.
Hi Amit,
Personally I have only traded once when I was sure of making a killing...it was some years agao...when IFCI was suppose to get Bids for stake...At the time lot size was huge.... close to 17000+ ....somebody here will remember the exact size then...anyways made a big packet at that time...
Normally....will take positions in very distressed ledger...with Options...for those underlying which I am familiar with movements and have been trading...in futures segment...VIJ I have been trading from 52.xx levels...
Therefore it is not actaully very OTM because it was above when I had given the first trigger...just that yesterdays down move pulled it down below 95levels....so ATM now becomes 95 Strike... considering I am quite familiar with the movement..it is ok..otherwise right strike to play would be 95
Anyways, have noted your leaning towards Options...let me see what can be done...
Have some guests coming over for the weekend... will try and reply in a couple of days...
SavantGarde
Personally I have only traded once when I was sure of making a killing...it was some years agao...when IFCI was suppose to get Bids for stake...At the time lot size was huge.... close to 17000+ ....somebody here will remember the exact size then...anyways made a big packet at that time...
Normally....will take positions in very distressed ledger...with Options...for those underlying which I am familiar with movements and have been trading...in futures segment...VIJ I have been trading from 52.xx levels...
Therefore it is not actaully very OTM because it was above when I had given the first trigger...just that yesterdays down move pulled it down below 95levels....so ATM now becomes 95 Strike... considering I am quite familiar with the movement..it is ok..otherwise right strike to play would be 95
Anyways, have noted your leaning towards Options...let me see what can be done...
Have some guests coming over for the weekend... will try and reply in a couple of days...
SavantGarde
To add to the above post, and for my little, chun-mun bro, Gauhar (who is real Goofy 
.
I sold 75 Reliance at 1012.35 avg. Buy avg a month ago - 1015.45
Loss about 280 ( including a month's bank interest + taxes+brokerage etc.)
Bought 25 sbi 2677 at an anticipated dip in the last leg. Sold at 2713.65 in the final rally
You do the math.
This is what I learnt from Mr. SG: Be Nimble!
.I sold 75 Reliance at 1012.35 avg. Buy avg a month ago - 1015.45
Loss about 280 ( including a month's bank interest + taxes+brokerage etc.)
Bought 25 sbi 2677 at an anticipated dip in the last leg. Sold at 2713.65 in the final rally
You do the math.
This is what I learnt from Mr. SG: Be Nimble!
Thank you Sir. I look forward to your comments. I have been reading much about options for last 2 days.
I was thinking that if we are trading a particular stock like Vijaybank, or IFCI using PA. Many times I have noticed that the price will drop unexpectedly and close lower than expected. Now, if we are using PA, we also know the support levels of these stocks. So, perhaps in this situation, we can use OTM options that are cheap for example the Vijaybank CA 100 was only 1.85. We buy these options and wait for the price to rebound. Now, if we look at what happened yesterday with the large drop in Nifty, I still ended up making profit on the Vijaybank CA even though I bought it before the fall. All it took for the price to go up slightly today and I was already in profit by mid afternoon. This was because of you perhaps since you knew that 90 was a big support level and remaining calm not panicking. So, even a little bounce in Equity side causes the option to rebound sharply perhaps over 20-30% on many occasions in a matter of minutes. We can simply use this occasion to sell. So, 20-30% of Rs.8000(which was total value of option) is 2500 in a matter of minutes by taking minimal risk since total risk is only Rs.8000. Now, if we buy these OTM during the first week or second week, and we are very optimistic about the stock, we use this unexpected dip in the stock to buy OTM option cheaply like we did with Vijaybank at 1.85 and sell the next day and if somehow, our support level doesn't work, then we are happy to hold, since we bought the option very cheap anyway and the stock is known to rebound sharply and it is quite solid, and the total loss will never be more 8-9000 in the worst case scenario if we hold till expiry which we never will anyway.
Sorry for the long message. Just some thoughts going through my head.
I was thinking that if we are trading a particular stock like Vijaybank, or IFCI using PA. Many times I have noticed that the price will drop unexpectedly and close lower than expected. Now, if we are using PA, we also know the support levels of these stocks. So, perhaps in this situation, we can use OTM options that are cheap for example the Vijaybank CA 100 was only 1.85. We buy these options and wait for the price to rebound. Now, if we look at what happened yesterday with the large drop in Nifty, I still ended up making profit on the Vijaybank CA even though I bought it before the fall. All it took for the price to go up slightly today and I was already in profit by mid afternoon. This was because of you perhaps since you knew that 90 was a big support level and remaining calm not panicking. So, even a little bounce in Equity side causes the option to rebound sharply perhaps over 20-30% on many occasions in a matter of minutes. We can simply use this occasion to sell. So, 20-30% of Rs.8000(which was total value of option) is 2500 in a matter of minutes by taking minimal risk since total risk is only Rs.8000. Now, if we buy these OTM during the first week or second week, and we are very optimistic about the stock, we use this unexpected dip in the stock to buy OTM option cheaply like we did with Vijaybank at 1.85 and sell the next day and if somehow, our support level doesn't work, then we are happy to hold, since we bought the option very cheap anyway and the stock is known to rebound sharply and it is quite solid, and the total loss will never be more 8-9000 in the worst case scenario if we hold till expiry which we never will anyway.
Sorry for the long message. Just some thoughts going through my head.
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