Option Buy Recomendations

nitu20 · #**391** 1st July 2008, 09:35 PM

Quote:

Originally Posted by ghosh_ak34

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

Dear Ghosh Sir,
I have some queries regarding your formula for buying call and put options.
1. As you have told earlier that R1-S1 > 300 but lesser than 400. So it means that we should only buy Call and put option if R1-S1 is between 300 and 400.
2. For the week calculation we should take only data between Monday to Friday or we can take any last five day data and trade.

Waiting eagerly for your prompt reply.
Priyank

ghosh_ak34 · #**392** 2nd July 2008, 12:22 PM

Quote:

Originally Posted by nitu20

Dear Ghosh Sir,
I have some queries regarding your formula for buying call and put options.
1. As you have told earlier that R1-S1 > 300 but lesser than 400. So it means that we should only buy Call and put option if R1-S1 is between 300 and 400.
2. For the week calculation we should take only data between Monday to Friday or we can take any last five day data and trade.

Waiting eagerly for your prompt reply.
Priyank

Dear Priyank,

Below are the answers to your queries:
1. Yes. If R1~S1 is outside 300-400 range avoid trading in options as per the strategy stated above.
2. Have taken Week as Monday to Friday. Have tested with this and would recommend the same.

Regards

optionstrader · #**393** 2nd July 2008, 10:17 PM

Hi Ghosh Sir,

I was out of station from some time.
Just returned. I could not calculate the R1 & S1 for this week.

Sir, did you calculate it? If yes, could you please guide us ?

Sir, i was thinking of another strategy, kindly guide me if i am wrong,
and also kindly give you suggestions.

Actually i was thinking, that if we purchase a put of Nifty ,
and trade the nifty futures, long for at least 50-70 points, and then exit,
and leave the put just to waste for the whole month.

Then again we buy nifty at lower levels and again sell at 50-70 points,
do you think this would work ?

If yes, then at what strike price shall the put be purchased ?

For example, if nifty spot is at 4000 and nifty future at a discount of 50 points,
say at 3550, then which strike price put shall be purchased ?

And also, since we hold the put, and nifty futures come down, what should we do,
exit the nifty future at a stop loss of 100 points, since it has a support at 100 points,
and enter at lower levels, or shall we go short on nifty futures, still keeping the put intact ?

Ghosh sir,
can we do it with stock futures also, like RPL, Reliance etc.
Kindly guide with the strategy with minimum loss, as i understand that in this market,
there is no 100% profit making strategy, but kindly guide for the one,
in which we can minimize the loss.

Kindly guide us and also give your suggestions.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

ghosh_ak34 · #**394** 3rd July 2008, 11:15 AM

Quote:

Originally Posted by optionstrader

Hi Ghosh Sir,

I was out of station from some time.
Just returned. I could not calculate the R1 & S1 for this week.

Sir, did you calculate it? If yes, could you please guide us ?

Sir, i was thinking of another strategy, kindly guide me if i am wrong,
and also kindly give you suggestions.

Actually i was thinking, that if we purchase a put of Nifty ,
and trade the nifty futures, long for at least 50-70 points, and then exit,
and leave the put just to waste for the whole month.

Then again we buy nifty at lower levels and again sell at 50-70 points,
do you think this would work ?

If yes, then at what strike price shall the put be purchased ?

For example, if nifty spot is at 4000 and nifty future at a discount of 50 points,
say at 3550, then which strike price put shall be purchased ?

And also, since we hold the put, and nifty futures come down, what should we do,
exit the nifty future at a stop loss of 100 points, since it has a support at 100 points,
and enter at lower levels, or shall we go short on nifty futures, still keeping the put intact ?

Ghosh sir,
can we do it with stock futures also, like RPL, Reliance etc.
Kindly guide with the strategy with minimum loss, as i understand that in this market,
there is no 100% profit making strategy, but kindly guide for the one,
in which we can minimize the loss.

Kindly guide us and also give your suggestions.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

Dear Optiontrader,

R1~S1 < 300, for the current week. So, would not recommend any trade this week.

Regarding your strategy, yes, you can do that with the R1 & S1 calculation as per stated strategy. Go long in Nifty futures at S1 and buy put at R1, only when R1~S1 >=300 and =<400. Future trading and writing options is risky so, I generally avoid it. It depends on your risk appetite. But remember - trend is our friend so your ratio (no. of lots of Nifty future Buy : no. of lots of Nifty put buy) should favour the trend only, for success.

The above strategy is for Nifty only and not for stocks.

Regards

optionstrader · #**395** 3rd July 2008, 01:26 PM

Hi Ghosh Sir,

Thank you so much.

That means, i should go for long futures, only when the R1~S1 > 300 and buy R1 put.

Sir kindly guide, if R1~S1 < 300, shall i go opposite,
that means buy a call at S1 & go short on Nifty Futures, or shall i do not trade at all ?

Kindly also guide , since futures are risky , should i go for this strategy or would the
strategy that we are using of R1 & S1 to trade only in options would be ok ?

Kindly guide, as i am totally confused.

Awaiting your response,

Thanks & Regards,
Optionstrader

ghosh_ak34 · #**396** 3rd July 2008, 01:57 PM

Quote:

Originally Posted by optionstrader

Hi Ghosh Sir,

Thank you so much.

That means, i should go for long futures, only when the R1~S1 > 300 and buy R1 put.

Sir kindly guide, if R1~S1 < 300, shall i go opposite,
that means buy a call at S1 & go short on Nifty Futures, or shall i do not trade at all ?

Awaiting your response,

Thanks & Regards,
Optionstrader

Dear Optiontrader,

If R1~S1 <300 or >400, recommend not to trade. Trade becomes very unpredictable and chances of failure increases.

Sometime its wise not to trade. Its not important to trade everyday but its important to save your hard earned money everyday.

Choose a system of your choice. Follow its rule and stick to it. How boring a system is, stick to it, after all nobody wants to jeoperdize a winning combination.

Regards

ARMHM · #**397** 3rd July 2008, 04:03 PM

Foolishness is a bliss but not for long time. A fool and his money soon part.

rajeshtrades · #**398** 4th July 2008, 02:15 AM

Quote:

Originally Posted by ARMHM

Foolishness is a bliss but not for long time. A fool and his money soon part.

ha...ha. A trained fool is called as options trader. Right?

(i hope not i am hurting anybody)

optionstrader · #**399** 4th July 2008, 05:09 PM

Quote:

Originally Posted by rajeshtrades

ha...ha. A trained fool is called as options trader. Right?

(i hope not i am hurting anybody)

i hope you are not talking about me. coz my name is optionstrader.
in case you are, then i would like to tell you , that i have been following Mr.Ghosh Sir's, Strategy and earning at least 30K to 40K per month, including brokerage.

You may or may not believe, its up to you.
Earning ??? How... Keep guessing.

But i am 100% sure, that Ghosh sir, know exactly what i am talking about,
and i again thank him for providing such system.

jace48 · #**400** 4th July 2008, 05:41 PM

rajeshtrades & optionstrader

Take these as good humour and Please close this chapter here itself. Let's be focused on subject of this thread