Option Buy Recomendations

ka2931 · #**921** 5th October 2008, 06:40 PM

I think touchraj is more or less correct.As per Mr.Ghosh recommendation for this week(where R1-S1 is within 300 & 400)you've to buy more puts(Nifty being bearish) of Strike Price-4000(at R1) and less calls of Strike price-3700(at S1) at market price prevailing around 10-30 to 10-45 AM trend or 12-30 PM or 3 PM trend.

If I'm anyway wrong,please correct me.
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Quote:

Originally Posted by penchant

Dear Touchraj;
In my opinion what Mr. Ghosh meant is that when nifty is around 3700 buy calls ; & nifty is around 4000 , buy puts.
I am certain that he did not mean us to buy puts of 4000 & calls 3700 straight away.
Rgds.; penchant

ghosh_ak34 · #**922** 5th October 2008, 06:40 PM

Quote:

Originally Posted by touchraj16

R/Ghosh Sir,
I am fresher for this thread so please need your guidence. I read the first post but still confused. As you stated R1=4000 & S1=3700 and "Nifty is bearish so buy more puts than calls", is it means buying call of 3700@... and put of 4000@... whatever price as per trend. Where in the last week,put 4000 close at 242 and call 3700 close at 247....something. I am going right or totally wrong????
Thanks in advance...
Raj

Dear Raj,

You need to buy puts of 4000 strike price when trend is down by 20pts in the intervals mentioned in 1st post i.e. at 10:30-10:45Am, 12:30 PM, 3:00 PM and buy calls at 3700 if trend is up by 20pts in these intervals.

So, buy 2 or 3 puts at 4000 if trend is down and buy 1 call at 3700 is trend is up as per "trend check" strategy posted in 1st post of this thread.

Please read the 1st post again and again to understand it better. Its recomended to refer 888optios dot com to understand the basics of options before you read the 1st post for better understanding.

Regards

sakti · #**923** 6th October 2008, 12:41 AM

Dear Sri Ghosh

I have a question on option selling system and settlement in nse.

Suppose a stock X is trading at 900/_ just before closing of any day. The call option 900 CA of that stock is trading at Rs. 10/_. At the end of the day stock closed at 901/_.

1. Mr. A baught the 900 CA @10/_. As the stock closed above 900, he can exercise the contract. He exercised it and has taken a loss of Rs. 9/_.

2. Mr. B sold the contract at Rs. 10/_ and at the end of the day he exercised / assigned the contract. Will he be eligible to exercise / assign the contract at the end of the day. If yes, will the profit of Mr. B will be Rs. 9/_.

Kindly answer my question, it will be very much helpfull to me.

touchraj16 · #**924** 6th October 2008, 09:00 AM

Quote:

Originally Posted by ghosh_ak34

Dear Raj,

You need to buy puts of 4000 strike price when trend is down by 20pts in the intervals mentioned in 1st post i.e. at 10:30-10:45Am, 12:30 PM, 3:00 PM and buy calls at 3700 if trend is up by 20pts in these intervals.

So, buy 2 or 3 puts at 4000 if trend is down and buy 1 call at 3700 is trend is up as per "trend check" strategy posted in 1st post of this thread.

Please read the 1st post again and again to understand it better. Its recomended to refer 888optios dot com to understand the basics of options before you read the 1st post for better understanding.

Regards

R/Ghosh Sir, Thanks for the pure guidence. Because, before reading this thread i was trading blindely, but now this thread and guidence will help me for the lifetime. Thanks again and if i need some help, i hope you n other seniors sure reply me.
Raj..

VJAY · #**925** 6th October 2008, 09:53 PM

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

kvram · #**926** 7th October 2008, 01:00 AM

dear ghosh sir to the above query of vijay sir ,plz also add my doubt after 10.45 within few minutes like say 5to 10 min trend changes to reverse to our holdor to wait upto next time level [if sl not triggered] .sir then we shall add reverse call or put, and these10-10.30-10.45-12.30,3.00 time frames followed same as in sideways trend strategy or buy both call and puts as u told ,plz clear me ,Thanking you ,

ghosh_ak34 · #**927** 7th October 2008, 09:52 AM

Quote:

Originally Posted by kvram

dear ghosh sir to the above query of vijay sir ,plz also add my doubt after 10.45 within few minutes like say 5to 10 min trend changes to reverse to our holdor to wait upto next time level [if sl not triggered] .sir then we shall add reverse call or put, and these10-10.30-10.45-12.30,3.00 time frames followed same as in sideways trend strategy or buy both call and puts as u told ,plz clear me ,Thanking you ,

Dear Vijay/KVram,

I am travelling so its v. difficult to connect to net while on move so requesting to read the 1st post for the answer. Would be able to answer only after 12th Oct.

Regards

rahul1983 · #**928** 7th October 2008, 10:53 AM

GHOS BABU , what to do in such situations

today nifty trend was like this

@ 10.00 nifty was @ 3694

@ 10.30 it was @ 3718

( + 20 points from 10.30, so the tredn is up but we wait till 10.45 for confirmation )

@ 10.45 it again came down to 3667 ( - 27 from 10.30 )

So in this situation what should we do....buy puts @ R 1 since the trend is down

or don't trade coz the trend @ 10.30 changed or did not got confirmed @ 10.45 ?

thanks

ghosh_ak34 · #**929** 7th October 2008, 12:03 PM

Quote:

Originally Posted by rahul1983

GHOS BABU , what to do in such situations

today nifty trend was like this

@ 10.00 nifty was @ 3694

@ 10.30 it was @ 3718

( + 20 points from 10.30, so the tredn is up but we wait till 10.45 for confirmation )

@ 10.45 it again came down to 3667 ( - 27 from 10.30 )

So in this situation what should we do....buy puts @ R 1 since the trend is down

or don't trade coz the trend @ 10.30 changed or did not got confirmed @ 10.45 ?

thanks

Dear Rahul,

Will treat the trend at 10:45 AM as final i.e. <20pts, means buy puts at R1= 4000.

Regards

rahul1983 · #**930** 7th October 2008, 03:28 PM

Thanks a lot Ghos Babu

Enjoying Durga Puja

The Following User Says Thank You to ghosh_ak34 For This Useful Post:
touchraj16 (6th October 2008)

The Following 2 Users Say Thank You to ghosh_ak34 For This Useful Post:
kvram (7th October 2008), VJAY (7th October 2008)

The Following 3 Users Say Thank You to ghosh_ak34 For This Useful Post:
kvram (7th October 2008), rps_1974 (12th October 2008), VJAY (7th October 2008)