Some out of money options get double or triple in 4-5 days.

#1
Some out of money options get double or triple in 4-5 days or some in a week. How to spot such trades?
For example....Take the case of ICICI Bank...28 July 2018 was the expiry of July Contract.
On 30th July we Buy ICICI Bank 300 CE at around 11 Rs.
On 9th Aug it was trading above 44 Rs.
It got multiplied 4 times......If we see the Chart of ICICI bank..it was showing Bullish Signs on 28-29-30 July

So my question is how to spot such trades? What are the parameters to decide?
 

OneThatGotAway

Well-Known Member
#2
parameters only icici fund manager knows .. coz he only knows when he is going to buy and make icici 8% up in comming few day lol
To give ya pointer buy whatever is above 200 day moving average and option are for looser . it;s better to take a chance in nifty index option
rather then stock specific.

good luck
 

sanju005ind

Investor, Option Writer
#3
Some out of money options get double or triple in 4-5 days or some in a week. How to spot such trades?
For example....Take the case of ICICI Bank...28 July 2018 was the expiry of July Contract.
On 30th July we Buy ICICI Bank 300 CE at around 11 Rs.
On 9th Aug it was trading above 44 Rs.
It got multiplied 4 times......If we see the Chart of ICICI bank..it was showing Bullish Signs on 28-29-30 July

So my question is how to spot such trades? What are the parameters to decide?
dont look for lotteries.
 
#4
Some out of money options get double or triple in 4-5 days or some in a week. How to spot such trades?
For example....Take the case of ICICI Bank...28 July 2018 was the expiry of July Contract.
On 30th July we Buy ICICI Bank 300 CE at around 11 Rs.
On 9th Aug it was trading above 44 Rs.
It got multiplied 4 times......If we see the Chart of ICICI bank..it was showing Bullish Signs on 28-29-30 July

So my question is how to spot such trades? What are the parameters to decide?
Let us take an example of stock in an uptrend. After an upmove, it pauses in the form of sideways consolidation of a flag...during this period it is best to buy options because they are inexpensive as the stock is going sideways..when the stock breaks out, the OTM call premiums go through the roof....

Mirror image for downtrends and buying of puts...

Smart_trade
 
#5
Let us take an example of stock in an uptrend. After an upmove, it pauses in the form of sideways consolidation of a flag...during this period it is best to buy options because they are inexpensive as the stock is going sideways..when the stock breaks out, the OTM call premiums go through the roof....

Mirror image for downtrends and buying of puts...

Smart_trade
I think ICICI Bank has gone sideways now
by the way please explain what you are saying with example
 

sanju005ind

Investor, Option Writer
#6
I think ICICI Bank has gone sideways now
by the way please explain what you are saying with example
There are certain times and conditions when you look for those kind of opportunities. Keep it as a separate trading system for additional bonus apart from your regular trading system. There i will be opportunities but you have to wait for long periods/days. Will certainly try to post some examples and how to scour for that kind of opportunities in the evening else tomorrow.
 
#7
There are certain times and conditions when you look for those kind of opportunities. Keep it as a separate trading system for additional bonus apart from your regular trading system. There i will be opportunities but you have to wait for long periods/days. Will certainly try to post some examples and how to scour for that kind of opportunities in the evening else tomorrow.
Waiting for your reply
 

sanju005ind

Investor, Option Writer
#8
Waiting for your reply
Since you will be buying options you need momentum or rather explosive one on your side.The direction part I leave it to you to find.
You would find that in the later part of the month like 10 days to expiry that the option prices are less(not necessarily cheap by valuation).
As ST has mentioned flag pattern which is a sign of continuation would be nice.Another one for range expansion is NR7/4.A bollinger expansion contraction too would be fine.Please find the below two examples one for Bajaj finance around 13th Aug, another for Glenmark around 16th of Aug.The pink candles in BajFin are NR7 days. The OTM options there got you nice money though not through the roof.

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