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Option Buy Recomendations

Discuss Option Buy Recomendations at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Originally Posted by ghosh_ak34 Dear Gorich. I use Nifty spot to calculate the R1/S1. Use ...


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  #441  
Old 14th July 2008, 12:36 AM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by ghosh_ak34 View Post
Dear Gorich.

I use Nifty spot to calculate the R1/S1. Use icharts.in/charts.html for spot Nifty calculations.

Regards
Dear Ghosh Sir,

I have taken 3900 call at Rs. 259 and 4300 Put at Rs. 335. But I am still not able to understand exit strategy. When should I decide to exit a loss making call. Should i put some stop loss for both the call and put just after buying. If so how much % should it be. Please suggest and make your strategy more clear to us by giving some examples.

regards,
Priyank
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  #442  
Old 14th July 2008, 07:52 AM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by akpinku View Post
Ghosh Da, Which is best and lowest brokarage house for option trading, my indiabulls charging 2.5% or 100 min. is any other oprtion available
Dear Akpinku,

In some brokerage house, brokerage depends on turnover per month, if your monthly turn over is more, say few crores, you may get better deal. Then even Indiabulls could provide you 0.2% brokerage if you negotiate.

Regards

Last edited by ghosh_ak34; 14th July 2008 at 07:54 PM.
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  #443  
Old 14th July 2008, 12:45 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by ghosh_ak34 View Post
Dear Gorich.

I use Nifty spot to calculate the R1/S1. Use icharts.in/charts.html for spot Nifty calculations.

Regards
Dear Ghosh_ak34 sir,
You are very prompt in replying to my queries. Thank you very much.
Grorich
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  #444  
Old 14th July 2008, 08:04 PM
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Default Re: Option Buy Recomendations

Dear Akpinku,

Did some enquiry about brokerage and found that sharekhan offers a better deal than Indiabulls. They offer 0.25% for trading and 2.5% long term. STT and ST extra.

Motilal Oswal also offers a good deal 0.30% for trading and 3% for long term.

Hope this helps!

Regards
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  #445  
Old 14th July 2008, 08:06 PM
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Default Re: Option Buy Recomendations

Dear Friends,

Nifty seems range bound 3900/4000 - 4100/4200. Buy calls at 3900/4000 and puts at 4100/4200.

Regards
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  #446  
Old 15th July 2008, 05:05 PM
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Default Re: Option Buy Recomendations

wow nice strategy but wat if mkt move opposite way
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  #447  
Old 15th July 2008, 08:23 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by nitu20 View Post
Dear Ghosh Sir,

I have taken 3900 call at Rs. 259 and 4300 Put at Rs. 335. But I am still not able to understand exit strategy. When should I decide to exit a loss making call. Should i put some stop loss for both the call and put just after buying. If so how much % should it be. Please suggest and make your strategy more clear to us by giving some examples.

regards,
Priyank
Dear Priyank,

The exit policy has been stated earlier in the thread as well. Here it is again for you :

Well will reco. a SL = 20-30% from buy price. Exit the loss making call if call hits SL and hold profit making put with a trailing SL and vice versa.

Buy options only after 10:30 AM and after the idea of the Nifty direction. For example if Nifty opens with a gap down more than 20 pts then, buy put at R1 only and if Nifty opens with a gap up more than 20 pts buy calls at S1 only.

Its not necessary to buy both calls and puts at the same time. But hedging is recommended unless one is very sure of the trend.

Always maintain a strict SL say 20-30% from your option buy price.

In case both the call and put SL is hit. Do not trade and wait for a trend to emerge first.

Hope the above helps.

Regards
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  #448  
Old 16th July 2008, 12:25 AM
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Default Re: Option Buy Recomendations

Dear ghosh sir,
i hv nifty ce 3900@150, closing 96, wat i can expect in it?
also i hv ranbaxy ca 460@19, closing 14, wat i can expect in both.
Thanks
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  #449  
Old 16th July 2008, 12:36 AM
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Default Re: Option Buy Recomendations

Option brokerage is set by SEBI.
All brokerage houses will use the same charges.
I am using sharekhan and its also charging the same.
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  #450  
Old 16th July 2008, 08:57 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by anjubhatia View Post
Dear ghosh sir,
i hv nifty ce 3900@150, closing 96, wat i can expect in it?
also i hv ranbaxy ca 460@19, closing 14, wat i can expect in both.
Thanks
Dear AnjuBhatia,

I hope you have made good profits in Ranbaxy 460 Call (closing at 31.25) and did an exit. Volume is very low so its preferred to make an exit after a profit.

For Nifty options refer my stated strategy earlier. Always maintain a SL say 20-30% in options. In bearish market, buy 2 puts at R1 and 1 call at S1 atleast.

Regards
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