Option Buy Recomendations

ghosh_ak34 · #**341** 9th June 2008, 09:28 PM

Quote:

Originally Posted by jace48

My system would be for public consumption when it's complete. Currently it's very rudimentary and have recently started giving buy/sell signals.

One of the current problems is that stoploss level of buy sell signals is very wide. For example with current buy signal on closing basis it's at 4670 given on Thursday EOD and stop loss @ 4500 levels. As on friday it's now at around 4600.

With such a huge stoploss level I am trying to preempt the my own system based on simulation and assumptions of closing level of nifty, hence the reason of hedging. My decision to buy at 4620 on thurday instead of 4670 is based on my assumptions of closing price higher than 4620

Backtest is pretty good and reallife execution started on May 30.
Since my capital is pretty small my objective is not to make money but to atleast protect my money so that I can test my testing in reallife.

Thanks..

Dear Jace48,

Good to know that you are working on designing a system. If you need any help in creating the system then, do let us know.

In case your SL is very deep, you can choose to have a smaller SL depending on your risk appetite. I will say let it be 1%-3% and target be more than 5% atleast of your traded money for example.

Regards

optionstrader · #**342** 12th June 2008, 04:24 PM

Hi Ghosh Sir,

Kindly guide, the system that we are following about the S1 & R1,
it for a week only ? or can it be carried over to the next week ?

Or is it so , that when we calculate, the S1 & R1 for the next week,
than we can exit the previous position & enter the new S1 & R1 Levels ?

Can we calculate the R1 & S1 for the month also, along with,weekly ?

Can we calculate the system, at around 3:15 on Friday, so that we can purchase
the calls & S1 and R1 on Friday itself , or is it so, that we should buy the calls on
Monday only ?

Kindly also, guide, can this system be traded the whole month or shall we stop
at 20th of every month ?

Ghosh Sir, Kindly also guide for anything else related to this system, as i have been
following this system on paper also, and found it really effective.

As, this system is less risky and does not involve much of the capital.
I once again thank you for providing such system.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

akpinku · #**343** 14th June 2008, 10:02 AM

hi optiontrader
can u guide how to save higher brokerage cgarge on option, 2.5% is too high and it eat almost 60 % of earnings

ghosh_ak34 · #**344** 14th June 2008, 11:59 AM

Quote:

Originally Posted by optionstrader

Hi Ghosh Sir,

Kindly guide, the system that we are following about the S1 & R1,
it for a week only ? or can it be carried over to the next week ?

Or is it so , that when we calculate, the S1 & R1 for the next week,
than we can exit the previous position & enter the new S1 & R1 Levels ?

Can we calculate the R1 & S1 for the month also, along with,weekly ?

Can we calculate the system, at around 3:15 on Friday, so that we can purchase
the calls & S1 and R1 on Friday itself , or is it so, that we should buy the calls on
Monday only ?

Kindly also, guide, can this system be traded the whole month or shall we stop
at 20th of every month ?

Ghosh Sir, Kindly also guide for anything else related to this system, as i have been
following this system on paper also, and found it really effective.

As, this system is less risky and does not involve much of the capital.
I once again thank you for providing such system.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

Dear Optionstrader,

Yes, you can calculate the R1 & S1 for the month as well. I have tested this system with data from Monday to Friday only. So, would suggest the same. You can square off the previous weeks loss making calls / puts and buy new calls or puts.

There is nothing that I have kept hidden about the system, its all about strategies, you can also come up with your own strategies. Yes, would prefer to square off all my positions by 20th of the month.

Regards

rajkuamr_xlin · #**345** 14th June 2008, 01:32 PM

this is rajkumar from coimbatore can send this calls everday in ***** messanger rajkumar_xlin@*************

subbssh · #**346** 14th June 2008, 05:18 PM

rpl june 160call buy@14.45 exit or hold till expiry

subbssh · #**347** 14th June 2008, 05:26 PM

low price future alongwith put may always profitable DLF @480?

ghosh_ak34 · #**348** 14th June 2008, 08:02 PM

Quote:

Originally Posted by subbssh

rpl june 160call buy@14.45 exit or hold till expiry

Exit RPL its looking somewhat weak currently.

Regards

ghosh_ak34 · #**349** 14th June 2008, 08:05 PM

Quote:

Originally Posted by subbssh

low price future alongwith put may always profitable DLF @480?

You can hold DLF 480 put. What does low price future means ?

Regards

ghosh_ak34 · #**350** 15th June 2008, 04:38 PM

Dear Friends,

Posting below strategy for the next week:

1st Strategy - Buy Nifty Futures at current levels and buy 4700 puts.

2nd Strategy - Buy Nifty 4300/4400 Calls and write 4800/4900 Calls.

Regards