Option Buy Recomendations

ghosh_ak34 · #**451** 19th July 2008, 10:46 AM

Dear Friends,

Below are the calculations as per my strategy.
Weeks High = 4111
Weeks Low = 3823
Weeks Close = 4092
2P = 2 * (4111+3823+4092)/3 = 8017.33333
R1 = 2P - L = 4194.33333
S1 = 2P - H = 3906.33333

R1 ~ S1 = 288 <300. So, would recommend not to trade next week according to my stated strategy earlier..

Regards

jace48 · #**452** 19th July 2008, 03:29 PM

Quote:

Originally Posted by ghosh_ak34

Dear Friends,

Below are the calculations as per my strategy.
Weeks High = 4111
Weeks Low = 3823
Weeks Close = 4092
2P = 2 * (4111+3823+4092)/3 = 8017.33333
R1 = 2P - L = 4194.33333
S1 = 2P - H = 3906.33333

R1 ~ S1 = 288 <300. So, would recommend not to trade next week according to my stated strategy earlier..

Regards

Ghosh_ak34,

Below are the calculations.

Weeks High = 4118
Weeks Low = 3790
Weeks Close = 4092
2P = 2 * (4118+3790+4092)/3 = 8000
R1 = 2P - L = 4210
S1 = 2P - H = 3882

R1 ~ S1 = 328 >300.

From what I understand Nifty is still bearish

Thanks...!

PS: Are you using Fibotrader?

ghosh_ak34 · #**453** 19th July 2008, 08:36 PM

Quote:

Originally Posted by jace48

Ghosh_ak34,

Below are the calculations.

Weeks High = 4118
Weeks Low = 3790
Weeks Close = 4092
2P = 2 * (4118+3790+4092)/3 = 8000
R1 = 2P - L = 4210
S1 = 2P - H = 3882

R1 ~ S1 = 328 >300.

From what I understand Nifty is still bearish

Thanks...!

PS: Are you using Fibotrader?

Dear Jace48,

My cals says R1~ S1 < 300 so, would not trade. Have not included Monday's data into my cals as there was not much movement either ways.

Market, I think will remain sideways and volatile next week. 22nd will decide further course of action.

Yeah! I am trying Fibotrader.

Regards

rohangawale · #**454** 20th July 2008, 12:11 AM

ghosh sir,
on friday i purchased 3700 nifty 31st july put , 1000@ 49.9.

what will be the scenario on monday and tuesday.
it will be better to sell it on monday only na?
pls guide

ghosh_ak34 · #**455** 20th July 2008, 10:01 AM

Quote:

Originally Posted by rohangawale

ghosh sir,
on friday i purchased 3700 nifty 31st july put , 1000@ 49.9.

what will be the scenario on monday and tuesday.
it will be better to sell it on monday only na?
pls guide

Dear Rohanawale,

Is it Nifty put or call. Anyways try to exit on Monday, normally its not recommended to have positions before a big event like this.

Regards

beginner_av · #**456** 20th July 2008, 02:04 PM

Quote:

Originally Posted by ghosh_ak34

Dear Rohanawale,

Is it Nifty put or call. Anyways try to exit on Monday, normally its not recommended to have positions before a big event like this.

Regards

Why exit? Unless you have WRITTEN the options?

jace48 · #**457** 20th July 2008, 02:15 PM

Quote:

Originally Posted by ghosh_ak34

Dear Jace48,

My cals says R1~ S1 < 300 so, would not trade. Have not included Monday's data into my cals as there was not much movement either ways.

Ghosh_ak34,

Monday's high was week's high and so is Wednesdays low.
Even if I take Friday's high as week's high the calculation comes to

Weeks High = 4110
Weeks Low = 3790
Weeks Close = 4092
2P = 2 * (4110+3790+4092)/3 = 7994.66
R1 = 2P - L = 4204
S1 = 2P - H = 3884

R1 ~ S1 = 320 >300.

Since Friday's high is almost equal to Monday's high

PS: You can use below mentioned one liner using Quick formula indicator to get above result using Weekly resolution

drawtext($Lastbar+5, PFAddBox($HighBar[$LastBar], 1)+50,SetDez($HighBar[$Lastbar]))

Substitute below mentioned code for low and close

For low SetDez($LowBar[$Lastbar])
For Close SetDez($LowBar[$Lastbar])

You might need to disable enable Quick formula to get the result

ghosh_ak34 · #**458** 20th July 2008, 06:32 PM

Quote:

Originally Posted by jace48

Ghosh_ak34,

Monday's high was week's high and so is Wednesdays low.
Even if I take Friday's high as week's high the calculation comes to

Weeks High = 4110
Weeks Low = 3790
Weeks Close = 4092
2P = 2 * (4110+3790+4092)/3 = 7994.66
R1 = 2P - L = 4204
S1 = 2P - H = 3884

R1 ~ S1 = 320 >300.

Since Friday's high is almost equal to Monday's high

PS: You can use below mentioned one liner using Quick formula indicator to get above result using Weekly resolution

drawtext($Lastbar+5, PFAddBox($HighBar[$LastBar], 1)+50,SetDez($HighBar[$Lastbar]))

Substitute below mentioned code for low and close

For low SetDez($LowBar[$Lastbar])
For Close SetDez($LowBar[$Lastbar])

You might need to disable enable Quick formula to get the result

Dear Jace48,

Yes you are correct. Fibo was giving wrong figures. icharts also shows the correct ones. Thanks Jace48. So, R1~S1 >300. But still I will not recommend a trade next week. Atleast before 22nd because of an obvious reasons.

Need to have a trend in place before we can take a call.

Regards

rohangawale · #**459** 20th July 2008, 10:59 PM

Quote:

Originally Posted by ghosh_ak34

Dear Rohanawale,

Is it Nifty put or call. Anyways try to exit on Monday, normally its not recommended to have positions before a big event like this.

Regards

sir its nifty put of 31 july.

AW10 · #**460** 21st July 2008, 02:49 AM

Quote:

Originally Posted by rohangawale

ghosh sir,
on friday i purchased 3700 nifty 31st july put , 1000@ 49.9.

what will be the scenario on monday and tuesday.
it will be better to sell it on monday only na?
pls guide

This 3700 PUT option is far out of the money now (almost by 380 points). It will be loosing money every day as it approaches towards expiry date. Even if market goes south from here, this option may not gain as much value as it will loose due to time decay.

If I were you, I would cut my loss and get out of it. In order for this option to be profitable, NIFTY has to reach 3650 level (=3700-49) by 31-July.

Happy Trading