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my option calls

Discuss my option calls at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; sell nifty 3400 calls for 154 sell nity 3400 puts for 250 collect 400 rs ...


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  #1  
Old 12th October 2008, 04:55 PM
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Default my option calls

sell nifty 3400 calls for 154
sell nity 3400 puts for 250

collect 400 rs per lot and sit quite for 10 days

safe range 3000-3800. square off when you get 150-200 per lot
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  #2  
Old 12th October 2008, 05:43 PM
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Default Re: my option calls

Sir

I have a contrarian view and I think it will be more logical to buy this straddle. Due to present volatile and uncertain market scenario, writing at the money options will be very risky.

Nifty closed at 3280. Incase the Global markets stabilise or recover little bit, there could be a strong rally due to short covering and buying support from some institutuios.

If you buy this straddle, I agree that you will break even only above 3800+ or below 3000. But any considerable movement in either way will bring some profit as 3400 strike price is very active and still some time value is left. Dont wait till expiry, book profit/square off with in 5-7 trading sessions. As it is buying, your risk is defined and if you write, it will create lot of tension till expiry in this volatile scenario.

Regards
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  #3  
Old 12th October 2008, 07:39 PM
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Default Re: my option calls

I am very new to Stock market .I want to learn how to trade in options.May be i sound silly but my question is if I sell a nifty 4000 call at Rs 17 then there is maximum chance of making profit as nifty will have minimum chance to cross 4000 by this expiry.

Subrata
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  #4  
Old 12th October 2008, 11:23 PM
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Default Re: my option calls

Quote:
Originally Posted by subrata_ind View Post
I am very new to Stock market .I want to learn how to trade in options.May be i sound silly but my question is if I sell a nifty 4000 call at Rs 17 then there is maximum chance of making profit as nifty will have minimum chance to cross 4000 by this expiry.

Subrata
sir writing options is much more risky than buing them....u cant predic the markets just like that....if u buy a call of 4000 at Rs 17 then if nifty crashes below 3000 u still will lose max of 17 rs but if nifty runs the call might even reach upto 250 or 300.....
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Old 12th October 2008, 11:34 PM
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Default Re: my option calls

Quote:
Originally Posted by subrata_ind View Post
I am very new to Stock market .I want to learn how to trade in options.May be i sound silly but my question is if I sell a nifty 4000 call at Rs 17 then there is maximum chance of making profit as nifty will have minimum chance to cross 4000 by this expiry.

Subrata
Never dream to become a write whatever be the scenario is...
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  #6  
Old 13th October 2008, 06:29 AM
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Default Re: my option calls

Writing options can give you profit only when nifty trades in a range. If nifty swings wildly the you will be caught and loose huge money. Its better to buy calls (or) puts rather than writing them in volatile days.
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  #7  
Old 13th October 2008, 07:48 AM
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Default Re: my option calls

Quote:
Originally Posted by sd_singal View Post
Sir

I have a contrarian view and I think it will be more logical to buy this straddle. Due to present volatile and uncertain market scenario, writing at the money options will be very risky.

Nifty closed at 3280. Incase the Global markets stabilise or recover little bit, there could be a strong rally due to short covering and buying support from some institutuios.

If you buy this straddle, I agree that you will break even only above 3800+ or below 3000. But any considerable movement in either way will bring some profit as 3400 strike price is very active and still some time value is left. Dont wait till expiry, book profit/square off with in 5-7 trading sessions. As it is buying, your risk is defined and if you write, it will create lot of tension till expiry in this volatile scenario.

Regards
i dont see any massive rally or short covering coming up this week. for some time we may be range bound. even if we rally, ppl will short again

i will square off by next monday or i i get 150-200 profit
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  #8  
Old 13th October 2008, 09:42 AM
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Default Re: my option calls

Quote:
Originally Posted by bandlab2 View Post
i dont see any massive rally or short covering coming up this week. for some time we may be range bound. even if we rally, ppl will short again

i will square off by next monday or i i get 150-200 profit
Fine. If the Dow slips 600 pts further over night ??

Where you will keep your SL?
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  #9  
Old 13th October 2008, 04:01 PM
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Default Re: my option calls

our total premium is around 350. we are 50 points in profit.

my stop loss would be loss of 100 rs.

when volatality is high, premiums are high, so take advantange by selling

for contrarian, i would NOT buy at 3400 since the total premium wold be 400. i will do 3200 put and 3600 call. this is to reduce the total outflow
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  #10  
Old 13th October 2008, 07:32 PM
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Default Re: my option calls

Quote:
Originally Posted by harvard.aspirant View Post
Never dream to become a write whatever be the scenario is...
You seem to be a flower in Hindi!!!! Today only writers are minting in Options in India!! Just look at the statistics!!! Ofcourse they do not hedge naked options, but why give a general statement as u have given!!!!
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