Option Buy Recomendations

skarpio · #**361** 21st June 2008, 01:50 AM

Quote:

Originally Posted by anupamluv

I booked profit at 88.00 BUT as the nifty went below 4470, I went contrarian and bought nifty-4500 call @ 24.70 (800 calls) ......... now its trading at 17.00 ... do u think its right time to buy it or as some of my frnds said I should have gone for nifty-4200-put instead...

I'm very nervous as I played a very high risk game ..... as only 4 days remaining for expiry and Im expecting mrkts to rise toward or cross 4500... What do you say??? can it go further down??? ....worried! as todays markets already seen much activity in nifty-4200-puts...

Bye...

You can still go for a spread: maybe a calendar spread with the July series or sell a call option.

optionstrader · #**362** 21st June 2008, 10:00 AM

Hi Ghosh Sir,

Kindly guide on the following levels for the next week.
I have taken the call & put values for July Series.

4679+4333+4347/3=13359

13359/3=4453

s1=2x4453-4679=4227
R1=2X4453-4333=4573

4639-4382=346
346>300

Ghosh sir, since r1-s1 is greater than 300,
so, can we buy call at around 4200-4250 and put at 4500-4550 ?

Kindly guide for this and any other of your strategies.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

Myfuturestock · #**363** 21st June 2008, 11:14 AM

Hello,

Can anyone help me in arbitration, or sensible hedging using Stock options. (The last time I had read about arbitration was in a pdf article known as Stocks Made Simple does anyone know where to find this article). If so please let me know regards

Myfuturestock

shankie14 · #**364** 21st June 2008, 01:54 PM

Quote:

Originally Posted by optionstrader

Hi Ghosh Sir,

Kindly guide on the following levels for the next week.
I have taken the call & put values for July Series.

4679+4333+4347/3=13359

13359/3=4453

s1=2x4453-4679=4227
R1=2X4453-4333=4573

4639-4382=346
346>300

Ghosh sir, since r1-s1 is greater than 300,
so, can we buy call at around 4200-4250 and put at 4500-4550 ?

Kindly guide for this and any other of your strategies.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

Sir - I am a bit confused on your calculation - I think you are using Week High +Week Low + Week Close - Per my software the high of last week was 4532 and thus P comes to 4404 and S1 at 4276 and R1 at 4475 - which leads to a delta of 198 points.
Please guide me if I have understood your formula correctly..
Thanks

shankie14 · #**365** 21st June 2008, 02:05 PM

Sir - I understood my mistake in calculation - please ingnore my comment above.
Thanks

viratdg · #**366** 21st June 2008, 04:51 PM

Respected Sirs,
I wanna SELL 4600 PE which is trading around Rs.250. Nifty's margin is around 23000. As writer I am liable to pay how much ???. Is it margin + Premium or Margin - premium. Expert advise required Please.

skarpio · #**367** 22nd June 2008, 01:07 PM

Quote:

Originally Posted by optionstrader

[...]Ghosh sir, since r1-s1 is greater than 300,
so, can we buy call at around 4200-4250 and put at 4500-4550 ?

While we wait for a response, I'll tag a question onto yours. The xx50 options are illiquid or so I have seen from my limited experience. That leaves us really with no choice but to go for CE 4200 and PE 4500. Am I wrong?

optionstrader · #**368** 22nd June 2008, 06:14 PM

you are right.

swdas · #**369** 22nd June 2008, 07:04 PM

Nice Thread!! 4200 is logical support for NF. And I think NF will test it before this expiry. Now what if 4200 breaks? Do we have any other support? Possibly not before 3950 NIFTY future?

Disclaimer: I hold some 4400 June PUT at 100. my SL is 100 on Monday. which will protect me upto 4330 NF level. If 4200 NF is broken I will hold it till expiry.

ghosh_ak34 · #**370** 22nd June 2008, 07:22 PM

Quote:

Originally Posted by optionstrader

Hi Ghosh Sir,

Kindly guide on the following levels for the next week.
I have taken the call & put values for July Series.

4679+4333+4347/3=13359

13359/3=4453

s1=2x4453-4679=4227
R1=2X4453-4333=4573

4639-4382=346
346>300

Ghosh sir, since r1-s1 is greater than 300,
so, can we buy call at around 4200-4250 and put at 4500-4550 ?

Kindly guide for this and any other of your strategies.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

Dear Optiontrader,

R1~S1 > 300 but its less than 400. So, we can still buy calls for next month at S1 (4200/4250) and puts at R1 (4500/4550). Market is currently bearish so you need to buy more puts than calls. Ratio could be 2 puts to 1 call atleast.

Do not buy options for the month of June as its already nearing expiry.

Regards