Option Buy Recomendations

ghosh_ak34 · #61 2nd December 2007, 11:12 AM

Quote:

Originally Posted by krishnan_vishnu

Dear Members,

Hello ,
I bought a Nifty december put option 5600 for Rs.157/- and
bought nifty december call option 6000 for Rs. 103.50.

Should I keep both or sell it. Pls advice.

Dear Friend,

The nifty is currently range bound 5400 - 6000. Looking at this I will reco buy a at money call i.e. 5700 CA and put at 6000.

Since you have already bought 6000 CA and Fed cut is expected you can hold 6000 CA and square off 5600 PE. And buy 5700 CA and 6000 PE.

Regards

krishnan_vishnu · #62 2nd December 2007, 11:45 AM

If the situtation vary every 5 trading session(bull run). I thught of squring off 6000 call when nifty cross 6050.
and squring of nifty come back to 5500 level after 12 trading session. will it work.

Since the investment risk associated in writing too many option
at the same time is high. (May be the proft/loss is huge)

Will it work Pls. reply

ghosh_ak34 · #63 2nd December 2007, 12:12 PM

Quote:

Originally Posted by krishnan_vishnu

If the situtation vary every 5 trading session(bull run). I thught of squring off 6000 call when nifty cross 6050.
and squring of nifty come back to 5500 level after 12 trading session. will it work.

Since the investment risk associated in writing too many option
at the same time is high. (May be the proft/loss is huge)

Will it work Pls. reply

Dear krishnan,

Please clarify the sentence "..squring of nifty come back to 5500 level after 12 trading session. will it work...", so that I could answer your query.

I will never reco. writing options at any level. Writing option is very risky and it eats margin money.

Regards

krishnan_vishnu · #64 2nd December 2007, 12:25 PM

Squring of nifty come back to 5500 Level means . Selling the
5600 Put option bought earlier. when Nifty reaches 5500 level vice versa.

otherwise
selling the 5600 Put (current open position) when nifty reach 5500
selling the 6000 call (current open position) when nifty reach 6050

ghosh_ak34 · #65 2nd December 2007, 04:09 PM

Quote:

Originally Posted by krishnan_vishnu

Squring of nifty come back to 5500 Level means . Selling the
5600 Put option bought earlier. when Nifty reaches 5500 level vice versa.

otherwise
selling the 5600 Put (current open position) when nifty reach 5500
selling the 6000 call (current open position) when nifty reach 6050

Dear Krishnan,

Your plan looks okay for writing options, keep tight Stop Loss. But remember option writing requires good margin money. And its risky so i reco. avoid writing options.

Regards

ghosh_ak34 · #66 5th December 2007, 08:19 PM

Dear Friends,

Some recos. :

Code:

Stocks	Lot Size  Strike Price	Action	Rate Around
========================================================
SBI	250	       2430	 Buy CA	    80
RIL	150	       3000	 Buy CA	    74
Infosys	100	       1620	 Buy PE	    65
Idea	2700	        130	 Buy CA	     6
IDBI	2400	        180	 Buy CA	   10.5
RNRL	7150	        190	 Buy CA	   14.55
TVS-
 Motors	2950	        75  	 Buy CA	    4.5
WWIL	3150	       100  	 Buy CA	   11.3

Targets --- 50% -75% 0f preminum. SL as per your risk appetite.

Regards

sanjugalande · #67 5th December 2007, 10:57 PM

Quote:

Originally Posted by ghosh_ak34

Hi Tulika,

Yeah! Fed cut is expected on 11th and charts shows starting of some volume pull back. I think you can buy a call at 5700 and hedge your positions and wait for the fed cut. Its always advisable not to have any positions before any event such as this and like.

Regards

sir can we enter on calls given by uon today?

what will be fed effect

munde_77 · #68 5th December 2007, 11:58 PM

Quote:

Originally Posted by ghosh_ak34

Dear Friends,

Some recos. :

Code:

Stocks	Lot Size  Strike Price	Action	Rate Around
========================================================
SBI	250	       2430	 Buy CA	    80
RIL	150	       3000	 Buy CA	    74
Infosys	100	       1620	 Buy PE	    65
Idea	2700	        130	 Buy CA	     6
IDBI	2400	        180	 Buy CA	   10.5
RNRL	7150	        190	 Buy CA	   14.55
TVS-
 Motors	2950	        75  	 Buy CA	    4.5
WWIL	3150	       100  	 Buy CA	   11.3

Targets --- 50% -75% 0f preminum. SL as per your risk appetite.

Regards

buying calls are good. dear ghosh your recommenations are good but please give advise on stop loss such as 20 to 30 % of premium also .so that novice traders may not get on wrong foot. U have mentioned according to ones` risk appetite.

I WILL SELL COVERED CALLS. STATIsTICS and STUDY SHOWS THAT MORE THAN 80% CALLS ARE NOT EXERCISED AND GOES EXPIRED . So guys buys calls and dont wait till expiry . Try to exit on small loss or within three or four day even though you may risk of losing profit in future. Larry McMillan proved that most of the times i.e more than 80% calls are not exercised and went expired .Please be careful in buying calls.......I am not here to scare you. but be cautious to exit early on smalls loss rather than call go fullly expires at huge loss. It is upto you.

thirunavukarasu · #69 6th December 2007, 12:03 AM

thats true 100percent.munde77.

munde_77 · #70 6th December 2007, 12:11 AM

Quote:

Originally Posted by thirunavukarasu

thats true 100percent.munde77.

Thanks thirunavukarasu............i really appreciate u for agreeing with me.