Option Buy Recomendations

ghosh_ak34 · #**101** 19th December 2007, 08:58 AM

Quote:

Originally Posted by krishnan_vishnu

Pls suggest should I hold till expiry. Will nifty reach
6000 before expiry ?

Thanks

Dear Friend,

I do not think Nifty is going to cross 6000 level for call at or above 6000 to be profitable.

Regards

niksan · #**102** 19th December 2007, 08:27 PM

ghosh_ak34 sir,

I have been trading in cash market and futures at times. I am very much interested in Nifty Options and have done my basic home work. Now I'm waiting for an opportunity for the 'Practicles'. As this is going to be my 1st trade @ options, could you please suggest me the levels I can take a position? I am not sure how the markets will move till the expiry!

Thanks & Regards

nareshch · #**103** 19th December 2007, 10:02 PM

Quote:

Originally Posted by krishnan_vishnu

Pls suggest should I hold till expiry. Will nifty reach
6000 before expiry ?

Thanks

Let it cross 5850 first . Even if it reaches 6000, its not of any use for you . the break even for your 6000 call is 6078( add brokerage to it ) .

If your Call premiums were already fallen and only peanuts were left , hold till expiry .If you are getting something back from your calls , take it out .

Naresh

ghosh_ak34 · #**104** 21st December 2007, 07:58 PM

Quote:

Originally Posted by niksan

ghosh_ak34 sir,

I have been trading in cash market and futures at times. I am very much interested in Nifty Options and have done my basic home work. Now I'm waiting for an opportunity for the 'Practicles'. As this is going to be my 1st trade @ options, could you please suggest me the levels I can take a position? I am not sure how the markets will move till the expiry!

Thanks & Regards

Dear Friend,

Welcome to options trading.
I will not recommend any calls before expiry. The market is very much volatile and its in a narrow range. For a option to be profitable some direction is a must. I think Nifty should move either up or down consistently for atleast seven days before one could find a definite trend. The range should be a broader one. I prefer a difference of atleast 200-300 points between support and resistence Nifty levels for a Nifty options to be profitable. Volume is very important factor in options. So, lets wait till we see a trend. may be Jan would be a good month to start with. Support and resistence that I am talking about is weekly in nature and it could be calculated as under:

Pivot point = P = (H + L + C)/3

Then,
First Resistance =R1= 2P - L
And Second Support =S1= 2P - H

R1 ~ S1 = 200-300. Where H = Highs of The week, L =Lows of the week and C= Close of the week. R1 and S1 are the expected support for the next week.

Regards

tidelganesh · #**105** 22nd December 2007, 06:34 PM

Hi Everyone ,

I am new to Options Trading. I am holding IDBI - DEC 170 CALL Options @ Rs.2.10. Should I hold or Exit ?

Can you please tell me how to Squre off ,Exercise in Sharekhan.

Thanks in advance

Ganesh

ghosh_ak34 · #**106** 22nd December 2007, 07:54 PM

Quote:

Originally Posted by tidelganesh

Hi Everyone ,

I am new to Options Trading. I am holding IDBI - DEC 170 CALL Options @ Rs.2.10. Should I hold or Exit ?

Can you please tell me how to Squre off ,Exercise in Sharekhan.

Thanks in advance

Ganesh

Dear Friend,

IDBI charts doesn't look good currently. You can exit or hold with a SL of 1.50. Go To F&o Turnover and select your option and click squareoff. there is an option for Exercise also.

Regards

tidelganesh · #**107** 23rd December 2007, 10:11 AM

Hi ,

Thank You for your prompt reply. And I have one more doubt,
How to carry forward my IDBI Options (Expiry : DEC07) to JAN 08

Thanks & Regards

ghosh_ak34 · #**108** 23rd December 2007, 05:57 PM

Quote:

Originally Posted by tidelganesh

Hi ,

Thank You for your prompt reply. And I have one more doubt,
How to carry forward my IDBI Options (Expiry : DEC07) to JAN 08

Thanks & Regards

Dear Friend,

I think you are talking about rollover in options. There is no option as such but you can buy jan option and and square off dec option.

Regards

optionstrader · #**109** 24th December 2007, 11:40 AM

Dear Ghosh Sir,

I have exited from both chambal and idbi and booked loss.
Sir, i wanted to know, that when you give any options call for ex. Buy IDBI 170 options call @ 4....and IDBI is trading at for ex. 150 or 160...then an we purchase at the money call or in the money call ?For example the IDBI is trading at 150...then can we purchase the 150 call or 140 call ?

And sir i also wanted to know that on what are the options prices Dependant, are they Dependant on futures price or cash price ?

Awaiting your quickest response,

Thanks & Regards,
optionstrader

ghosh_ak34 · #**110** 24th December 2007, 07:24 PM

Quote:

Originally Posted by optionstrader

Dear Ghosh Sir,

I have exited from both chambal and idbi and booked loss.
Sir, i wanted to know, that when you give any options call for ex. Buy IDBI 170 options call @ 4....and IDBI is trading at for ex. 150 or 160...then an we purchase at the money call or in the money call ?For example the IDBI is trading at 150...then can we purchase the 150 call or 140 call ?

And sir i also wanted to know that on what are the options prices Dependant, are they Dependant on futures price or cash price ?

Awaiting your quickest response,

Thanks & Regards,
optionstrader

Dear Friend,

Always keep strict SL while trading. If underlying i.e. cash eq. is trading is 1% up or down then, option trades at 10% up or down approx. If idbi is at 150 then, At money call option will be call at 150 strike price. In money calls are costlier then, out of money calls. But one should buy current month's out of money calls only when the underlying is expected to move up in the current month, otherwise buy next month's out of money call.

Regards