Option Buy Recomendations

ghosh_ak34 · #**381** 28th June 2008, 09:55 AM

Quote:

Originally Posted by anupamluv

Dear ghosh sir,
Can u tell how to how to find nifty levels for hedging ... like today nifty spot closed at 4136 ... is it sensible to buy nifty-4300-ce for Rs 90 (means 4390 level we are expecting on the high)
and to hedge my position I'm confused whether I should buy
1. nifty-4100-pe @ 196 (4100 - 196 = 3904 )
2. nifty-4200-pe @ 248 (4200 - 248 = 3952 )
OR straight away nifty-4600-pe @ 547 ( 4600 - 547 = 4053) ...

I'm new to hedging and trying to understand how to find best levels.........
Or if I am wrong can u tell me other way to find the levels ....... btw I dont understand delta, vega etc in options...

Dear Anupamluv,

As mentioned in my earlier threads-28, calculate R1 and S1 based on weeks high,low,open and close. Buy calls at S1 and puts at R1 as per strategy mentioned earlier. When Nifty is bearish buy more no. of puts and lesser no. of calls. Keep ratio 2 puts:1 call when bearish and 2calls:1 put when bullish. If sideways ,watch and vary nos. as per trend or just do not trade. Sometimes its wise not to trade.

If you do not understand delta, vega etc do not worry. Lets keep things simple.

Regards

anupamluv · #**382** 29th June 2008, 12:52 AM

Oh that so simple, Im sorry ghosh sir, I havent gone through page 28 of this thread.... for those who're new to it should go through the link http://www.traderji.com/options/1679...ations-28.html

But ghosh sir, We all know tht technicals doest work for every day... what's for ur suggestion for a new option trader in a heavily volatile market.... should they avoid itat all or enter it by means of "naked trading" and look for hedging at some point (if not come out as winner).........

Bye

ghosh_ak34 · #**383** 29th June 2008, 09:54 PM

Quote:

Originally Posted by anupamluv

Oh that so simple, Im sorry ghosh sir, I havent gone through page 28 of this thread.... for those who're new to it should go through the link http://www.traderji.com/options/1679...ations-28.html

But ghosh sir, We all know tht technicals doest work for every day... what's for ur suggestion for a new option trader in a heavily volatile market.... should they avoid itat all or enter it by means of "naked trading" and look for hedging at some point (if not come out as winner).........

Bye

Dear Anupamluv,

New traders should 1st paper trade for atleast three months before taking a real trade. If you wanna start trade then, start with small amount for three months. Its recomended not to trade with naked options. If you want to trade with naked calls put a strict SL.

Hope this helps.

Regards

learn2trade08 · #**384** 30th June 2008, 02:32 AM

Sir,
thank you for the informative thread.I have a query,what happens if i buy one lot of nifty in the morning and sell in the evening for profit/loss,am i liable to providing delivery of underlng security at the end of the month.
thank you

Quote:

Originally Posted by ghosh_ak34

Dear Anupamluv,

New traders should 1st paper trade for atleast three months before taking a real trade. If you wanna start trade then, start with small amount for three months. Its recomended not to trade with naked options. If you want to trade with naked calls put a strict SL.

Hope this helps.

Regards

awachat · #**385** 30th June 2008, 07:23 AM

Hi Ghosh Sir,

I have gone through your provided update under this thread which helps me to understand Option trading.

I am also new in Option trading till last week I was investing money in Equity/ Mutual Fund for long term investment. Now I want to try Option trading. In fact I have taken PUT call for Nifty 4200 on Friday and got some profit as well. I am downloading every days NSE data and inserting in MS access database and using query option crating some reports which are providing information about Put/Call ration or variation in volumes and OI. Using this I can fan-out which contract volume are started decreasing and incising.

If you guide me more then we can build system which well help us to find profit making scripts which will help us everyone.

anupamluv · #**386** 30th June 2008, 03:41 PM

Quote:

Originally Posted by awachat

Hi Ghosh Sir,

I have gone through your provided update under this thread which helps me to understand Option trading.

I am also new in Option trading till last week I was investing money in Equity/ Mutual Fund for long term investment. Now I want to try Option trading. In fact I have taken PUT call for Nifty 4200 on Friday and got some profit as well. I am downloading every days NSE data and inserting in MS access database and using query option crating some reports which are providing information about Put/Call ration or variation in volumes and OI. Using this I can fan-out which contract volume are started decreasing and incising.

If you guide me more then we can build system which well help us to find profit making scripts which will help us everyone.

Can u plz share with us in detail on what data do u download into msaccess and what query do u run to find our PCR or variation in vol of OI...

ghosh_ak34 · #**387** 30th June 2008, 08:37 PM

Quote:

Originally Posted by learn2trade08

Sir,
thank you for the informative thread.I have a query,what happens if i buy one lot of nifty in the morning and sell in the evening for profit/loss,am i liable to providing delivery of underlng security at the end of the month.
thank you

Dear learn2trade08,

No you are not liable to buy the stock. To learn refer 888option dot com

Regards

awachat · #**388** 1st July 2008, 07:19 AM

Hi Anupam

I am downloading options EOD from nseindia where I am getting full detail information of each transaction which happen on NSE.

This EOD file is available for everyone. You can visit nseindia website go to F&O tab > Market information > Market today > Bhavcopy download > Download file in CSV format

You can open this file in MS excel or notepad. I feel it’s more useful if you open in excel then you can use excel filter option and filet required data.

Same file I am inserting in ms access and crating query’s using day or volume or OI same you can do with excel but when you want to filter more then 7 days data then you will required some database.

Let me know any more query’s if you have or any suggestions

awachat · #**389** 1st July 2008, 07:22 AM

Hi All,

At starting I am doing this trading only for learning and understanding options.

I am new in option trading. Yesterday bye contract of OPT-NIFTY -31-Jul-2008-4000-PE @ 145 and sold at 194 Quantity was 50. Nifty Initial Margin was 14 %

I want to know how to calculate and what is the best way to get more profit:-

1) Initial margin I have to pay 14 % of 145 which is = 20.30 quantity was 50 so total will be 1015. My calculation is right? Do I need to pay margin while selling also?

2) So profit calculation will be

(Sell order * Qty) – (Buy order * Qty) = Initial profit, Initial profit – Margin 14% - Brokerage = Actual profit.

(194*50) – (145*50) = 2450, 2450 – 1015 – 350 = 1085

Is that Right?

In given scenario I have transfer the contract to another person where I got minimum profit. There is any another way to get more profit?

Please help me

awachat · #**390** 1st July 2008, 07:27 AM

Quote:

Originally Posted by ghosh_ak34

Dear learn2trade08,

No you are not liable to buy the stock. To learn refer 888option dot com

Regards

Hi Ghosh Sir,

I have visited 888 option web site but its little difficult to understand terms as I am not having financial or accounting background. So I have posted some queries in this thread I hope you will not mind.