Nify Call option up or down - June 09

Hi,

I brought Nifty Call option 4600 - 1 lot - 88Rs and 4650 - 1 lot - 70Rs - June09 month.

shall i hold it or sell it with current value, could anybody comment on this. i am new to option trading.

Raj. Both the purchase were wrong in my view, because
1) in order for you to make money on that call, the nifty has to cross 4600+88 =4688 / 4650 + 70 = 4720.

2) Nifty reversed from 4700 level so that will act as strong resistance and selling will come back to the market whenever Nifty reaches that level. And if buying is not strong enough then only way is down from there.

3) Moreover there are 6 trading days left for expiry hence time decay will start eating your option position at increasing rate.

So if Nifty doesn't move up and cross 4700 level, sorry to say,these trades will loose.

And after todays fall, if you are still holding these positions then you would be in bigger loss.

Better luck next time.. Do plan your trade before you enter..

Happy Trading

Raj, I feel that you need to understand more about options trading concepts before you actually put your money in it.

Please go through the threads of ak ghosh & jamit_05 at our forum and learn and understand some of the important concepts. These will help you to be more careful in future.

Thanks guys...i will go through the threads of ak ghosh & jamit_05

Still now i didnt sell it, now price is
Nifty Call option 4600 - 1 lot - 30Rs and 4650 - 1 lot - 25Rs - June09 month.
Tomorrow i am going to sell it and going to start the new one from next month onwards.

i think it won't be right time to enter in next month's options as the premium would be high...so wait for right time...& if you are looking for just trading then don't buy out of money options.