Wipro [507685] - Bull or Bear?

#1
Closed @ 416.50

Hello friends,

This has approached an old resistance zone. Looks like good short to me. What do you think about this share?




Short 1 Fut @ 416.00
plus
long 1 25 Jan CE 420

Lets see how this works out by this month end.
 
#3
short now with a bigger stop above 424

Yes, true.

I was in a hurry - got badly filled - around 415/16 - now I'm in pain till CE starts playing out. Anyways, just part of game - lets wait and watch till end of month.
I'll cut this off if I'm in pain of 45 points.
 

IAtma

Well-Known Member
#4
mazaa aayaa yaraa :rofl::rofl::p

arre yaar maine tumhe aise tym support kiyaa jab tum galat trade daal kar fansaa mahsoos kar rahe the...., ek thanks to de jaate....:D


short now with a bigger stop above 424


Yes, true.

I was in a hurry - got badly filled - around 415/16 - now I'm in pain till CE starts playing out. Anyways, just part of game - lets wait and watch till end of month.
I'll cut this off if I'm in pain of 45 points.
 
#5
mazaa aayaa yaraa :rofl::rofl::p

arre yaar maine tumhe aise tym support kiyaa jab tum galat trade daal kar fansaa mahsoos kar rahe the...., ek thanks to de jaate....:D
Hi IAtma,

Code:
http://www.traderji.com/equities/65527-bulls-bear-j0ker.html#post633374
Thanks for your support, actually the trade was not wrong - it was the timing which went wrong in my trade - instead of 416, I could have got short at 420/424 level. I did not get hurt in this trade.

We might get a second chance on Jan 20 or after, let see how it rolls.
+ 1 Thanks

How do it go for you?
 
Last edited:

Taurus1

Well-Known Member
#6
Short 1 Fut @ 416.00
plus
long
1 25 Jan CE 420
There was no point of 1 long + 1 short. Instead buy the 410-405 put since the R/R is exactly the same.
 
#7
There was no point of 1 long + 1 short. Instead buy the 410-405 put since the R/R is exactly the same.
I entered short in Fut so that I can get out whenever I wanted to, I'm bit new to options. So, The idea of the trade was to enter short @ 416/420 level (with SL @ 430/5 area) and cover it at lower price. Instead of using a SL, I just used a call option (CE) for hedging.

Had I bought the 420 put option (PE), can you confirm if I would be able to take out my profits when the stock price was below Rs. 400?
Taurus, I'm not sure about trading options, hence asking. I've heard that these european options can only be closed on expiry?
 

Taurus1

Well-Known Member
#8
Option positions can be closed anytime. No idea of the liquidity in Wipro though.
My stock option trades are only in those which have the highest liquidity.
 
#10
Option positions can be closed anytime. No idea of the liquidity in Wipro though.
My stock option trades are only in those which have the highest liquidity.
Thanks Taurus.

What happens when there's not enough liquidity to walk out?

Hypothetically: On 15 Jan, 2012 I've entered a trade: buy-to-open Wipro 450 PE-jan-25-2012. spot price = Rs. 445.

Now, since Jan 20th onwards, the liquidity dried up completely and I'm unable to close the long position till settlement day. Wipro closes at Rs. 400 on Jan/25th.

Now, what would be the situation? Will I not get paid anything since I didn't exit/close ?
 

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