Option Buy Recomendations

nareshch · #**491** 29th July 2008, 12:37 AM

Quote:

Originally Posted by ghosh_ak34

Hi Praveen,

Thats the mistake many do in market. Avoid strangle. Buy calls at R1 and puts at S1 as per strategy stated earlier. Always maintain a strict SL = 20%-30%. Exit the loss making 4600 call and hold proft making call with a trailing SL=10% max.

I will add you in YM.

Regards

Hi Ghosh ,

Is int Buying calls at R1 risky ? I thought Buy Calls above R1 or Puts below S1 . We can also take puts near R1 and calls near S1 .
For this week , R1 is 4544 and S1 is 4085 . We are at 4320 now .Which one do you suggest ? Call or Put ? Please clarify

Naresh

lalpar · #**492** 29th July 2008, 10:28 AM

Hi Ghosh,

I squared off the 4350 Put today at 100..Profit of Rs 32 ...Going fwd I will ensure trade options in 100 series rather that 4350 or 4250..

Regards
Lalith

nagendra_gb · #**493** 29th July 2008, 03:42 PM

Hi Ghosh..

Wht is ur opinion on ISPAT . today i brought 35 call option at .7.

ghosh_ak34 · #**494** 29th July 2008, 08:34 PM

Quote:

Originally Posted by nareshch

Hi Ghosh ,

Is int Buying calls at R1 risky ? I thought Buy Calls above R1 or Puts below S1 . We can also take puts near R1 and calls near S1 .
For this week , R1 is 4544 and S1 is 4085 . We are at 4320 now .Which one do you suggest ? Call or Put ? Please clarify

Naresh

Dear Naresh,

I wanted to say that about buying calls at R1 and puts at S1 as its strangle. Buy calls at S1 and puts at R1.

Follow the strategy stated below:

If Nifty opens with gap up and remain above 20pts till 10:30AM - 10:45 AM buy calls at S1 with SL 20-30% from your buy price. Book profit if your target is achieved or buy puts at R1 around 3:00 PM-3:15 PM and hold call with a trailing SL of say 10%.

If Nifty opens with gap down and remain below 20pts till 10:30AM - 10:45 AM buy puts at R1 with SL 20-30% from your buy price. Book profit if your target is achieved or buy calls at R1 around 3:00 PM-3:15 PM and and hold put with a trailing SL of say 10%.

Vary calls and puts nos. according to the trend.

So, as per current strategy today we should have bought puts at R1 and should be holding it with trailing SL=10% max.

I hope this helps.

Regards

ghosh_ak34 · #**495** 29th July 2008, 09:12 PM

Quote:

Originally Posted by nagendra_gb

Hi Ghosh..

Wht is ur opinion on ISPAT . today i brought 35 call option at .7.

Dear Nagendra_gb,

ISPAT looking weak, Will reco an exit from the call. Its recomended not to buy any options for the current month after 20th of the month.

Regards

nareshch · #**496** 29th July 2008, 09:47 PM

Quote:

Originally Posted by ghosh_ak34

Dear Naresh,

I wanted to say that about buying calls at R1 and puts at S1 as its strangle. Buy calls at S1 and puts at R1.

Follow the strategy stated below:

If Nifty opens with gap up and remain above 20pts till 10:30AM - 10:45 AM buy calls at S1 with SL 20-30% from your buy price. Book profit if your target is achieved or buy puts at R1 around 3:00 PM-3:15 PM and hold call with a trailing SL of say 10%.

If Nifty opens with gap down and remain below 20pts till 10:30AM - 10:45 AM buy puts at R1 with SL 20-30% from your buy price. Book profit if your target is achieved or buy calls at R1 around 3:00 PM-3:15 PM and and hold put with a trailing SL of say 10%.

Vary calls and puts nos. according to the trend.

So, as per current strategy today we should have bought puts at R1 and should be holding it with trailing SL=10% max.

I hope this helps.

Regards

I assume S1 and R1 here are daily support and resistance . Is that Correct ?

Or Does it mean that we have to buy 4500 put ( weekly R1 ) and 4000 call ( Weekly S1) ?

Naresh

anjubhatia · #**497** 30th July 2008, 12:27 AM

ghosh sir, i hv r com ca aug 500 @29, wat i can expect with time frame, wat shud be my sl?
satyam ca 380 aug at 29, tgt with time frame and sl.
thanks in advance

vishveshchauhan · #**498** 30th July 2008, 01:31 PM

Hello Goshji,

I have bought Aug Nifty CE of 4500 at 95 RS today, how feasible it is. Please guide

ghosh_ak34 · #**499** 30th July 2008, 05:33 PM

Quote:

Originally Posted by nareshch

I assume S1 and R1 here are daily support and resistance . Is that Correct ?

Or Does it mean that we have to buy 4500 put ( weekly R1 ) and 4000 call ( Weekly S1) ?

Naresh

Hi Nareshch,

Yes, R1 and S1 are weekly resistence and supports. So, buy calls at 4000 and pust at 4500 as per strategy stated earlier.

Regards

ghosh_ak34 · #**500** 30th July 2008, 07:56 PM

Quote:

Originally Posted by vishveshchauhan

Hello Goshji,

I have bought Aug Nifty CE of 4500 at 95 RS today, how feasible it is. Please guide

Dear Vishveshchauhan,

I think you can hold this with a SL = 67 Rs (max) i.e. 30% of your buy price.

Avoid buying calls at R1 unless you are very sure of the uptrend.

Regards

The Following User Says Thank You to ghosh_ak34 For This Useful Post:
praveen taneja (30th July 2008)