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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 VJAY Ghosh Sir, Please clarify my following doubts.I think I doing wrong ...


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  #941  
Old 11th October 2008, 12:34 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by VJAY View Post
Ghosh Sir,
Please clarify my following doubts.I think I doing wrong .
1.If morning we have bearish trend and def 10-10.30.45 is more than 20 then we buy Put.then at 12.30 the trend changed to bullish by 20 points then what can we do?sell current put and buy call or else.
If morning trend is bullish then can we buy more calls?
2.is no need to buy put and call at same time?
Please explain the positions if the trend changed(12.30) after the entry at 10.30

Thanks & Regards
VJAY

Ghosh Sir,

I hope I get ans to my questions today.

Thanks,Regards
VJAY
Dear Vijay,

Below is the answer to your query:

When trend is bearish at 10:30-10:45 by 20pts then, buy puts at R1 and hold with SL=30% from your buy price. And at 12:30 PM if trend reversed i.e. bullish by 20pts then, buy call at S1 and hold with SL=30% from your buy price. See you can to hold on to previous postions i.e. put at R1 in this case with SL=30% from your buy price.

Its all about your risk appetite and comfort level. Hold on to the previous positions with SL =30% after trend reversal or exit.

There is no need to buy both call and put at the same time. Buy as per trend check strategy posted in 1st post of this thread.

Regards
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  #942  
Old 13th October 2008, 12:08 PM
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Default Re: Option Buy Recomendations

Hi Ghosh,

I have Query if we Exercise a Option say ICICI Call 420 (bought @ 25)when price become 455 does we get the the final price of 455-420-25 = 10Rs
or the settlement price will vary...(this is just for information..the premium is higher now).
I also plan to buy 420 PUT depending upon Trend...

Also i hold a 3300 Nifty PUT @ 175..shall i hold for this week there is no guarntee which way market will Go...

Things may change when you See this post..But Any information from you may will help for future trades...

Thanks & Regards

Kumar
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  #943  
Old 13th October 2008, 06:48 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by kumark View Post
Hi Ghosh,

I have Query if we Exercise a Option say ICICI Call 420 (bought @ 25)when price become 455 does we get the the final price of 455-420-25 = 10Rs
or the settlement price will vary...(this is just for information..the premium is higher now).
I also plan to buy 420 PUT depending upon Trend...

Also i hold a 3300 Nifty PUT @ 175..shall i hold for this week there is no guarntee which way market will Go...

Things may change when you See this post..But Any information from you may will help for future trades...

Thanks & Regards

Kumar
Sir

Though i am not a great analyst like ghosh sir , i feel you should have sq off your PE today itself if you dont hold any ce. It seems a short covering rally is goin on , nifty right now has momentum and support from world mkts to take it near 3800 also.
Dow fut are up 350 indicating a rally there too which will influence asian mkts tomorrow.

I am expecting a big rally for next 2 days , dont know when will it fizzle out.
My positions are
3600 ce 2 lots ( am bullish)

3400 pe 1 lot ( hedged so holding it till now though values is now half of what i invested

4500 ce 4 lots ( holding them from last 20 days ).

Lets see what happens
Best of luck
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  #944  
Old 13th October 2008, 07:11 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by kumark View Post
Hi Ghosh,

I have Query if we Exercise a Option say ICICI Call 420 (bought @ 25)when price become 455 does we get the the final price of 455-420-25 = 10Rs
or the settlement price will vary...(this is just for information..the premium is higher now).
I also plan to buy 420 PUT depending upon Trend...

Also i hold a 3300 Nifty PUT @ 175..shall i hold for this week there is no guarntee which way market will Go...

Things may change when you See this post..But Any information from you may will help for future trades...

Thanks & Regards

Kumar
Dear Kumar,

You need to use optioncalculator to calculate the final price of ICICI 420CA. Buy call and put as per sideways strategy posted in 1st post of this thread.

Do not buy puts at lower levels when global clues is +ve. Better exit from the put if you have not hedged it.

Regards
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  #945  
Old 14th October 2008, 09:50 AM
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Default Re: Option Buy Recomendations

Hi coolboy,

Thanks for your comments...

I also Hold 1 CE 3900 Nov.

Regards

Kumar

Quote:
Originally Posted by coolboy007 View Post
Sir

Though i am not a great analyst like ghosh sir , i feel you should have sq off your PE today itself if you dont hold any ce. It seems a short covering rally is goin on , nifty right now has momentum and support from world mkts to take it near 3800 also.
Dow fut are up 350 indicating a rally there too which will influence asian mkts tomorrow.

I am expecting a big rally for next 2 days , dont know when will it fizzle out.
My positions are
3600 ce 2 lots ( am bullish)

3400 pe 1 lot ( hedged so holding it till now though values is now half of what i invested

4500 ce 4 lots ( holding them from last 20 days ).

Lets see what happens
Best of luck
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  #946  
Old 14th October 2008, 02:36 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by kumark View Post
Hi coolboy,

Thanks for your comments...

I also Hold 1 CE 3900 Nov.

Regards

Kumar
Its good that you have taken NOV series now as time decay would start biting the premiums. All my positions are in OCT. I will be taking 4000 ce NOV in this week 2-3 lots. I feel we may see more upmove in november , though we still have to form a bottom. Those are my views only , i cn be wrong too.
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  #947  
Old 14th October 2008, 03:24 PM
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Default Re: Option Buy Recomendations

Hi

if we see today's Trading i am not sure where Nifty will go...Because if tommarrow nifty ended in RED people may again start to sell...

All technical analysts are mentioning 3800 is important level, only this breached nifty may go above..

Regards

Nithin

Quote:
Originally Posted by coolboy007 View Post
Its good that you have taken NOV series now as time decay would start biting the premiums. All my positions are in OCT. I will be taking 4000 ce NOV in this week 2-3 lots. I feel we may see more upmove in november , though we still have to form a bottom. Those are my views only , i cn be wrong too.
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  #948  
Old 16th October 2008, 06:19 AM
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Default Re: Option Buy Recomendations

sir every day i read Ur post more then three time . i hope i will understand it one day . thanks a lot sir. sir pls add me
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  #949  
Old 16th October 2008, 02:15 PM
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Default Re: Option Buy Recomendations

Ghosh sir,

I bought 3100 Put at 128. What do you say, hold or sell off?
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  #950  
Old 16th October 2008, 07:51 PM
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Default Re: Option Buy Recomendations

Quote:
Originally Posted by vagdwd View Post
Ghosh sir,

I bought 3100 Put at 128. What do you say, hold or sell off?
Dear Vagdwd,

Hold 3100 put with SL=90. Market is bearish, though we can see some sukker ralies.

Regards
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