My intraday bets on options

joy_mitali · #1 19th July 2005, 12:14 AM

Hi all---respected seniors and juniors---
I am trying to start a intraday option trading pick---Hope seniors and knowledgables would take active part in it----and rectify if there r some flaws in my picks-----

One of my favourite scrips--which I have time tested with sweet and sour experiences is NTPC----
EVEN with todays boyant market----NTPC 90 PUT was poised in a sweet trading range between Re.1 to Rs.1.75,Closing at 1.2

I presume--- a fall once in the market when occurs tomorrow---can take this price ---to around 1.6---1.8----Remember----Those who have general terms of brokerage should at least have 50p difference---to see some profit----I have myself bought this PUT at 1.05----
If MArket rise----and NTPC price increases to around 92.75--93----NTPC PUT can fall to the level of 75---80 paisa-----As per my opinion it would be the best time to take the bet----and then get out with the falling NTPC price----with a difference money of 50paisa----

The general feeling inthe market is NTPC should rise----This is a bet against general public opinion---
Please Newbies----Plz never rush----and be very careful------A bit of miscalculation-----can easily make a loss of 1200 to 2000 bucks----

Experts----Plz comment------

Regards,
joy_mitali

AMITBE · #2 19th July 2005, 07:50 AM

Hi there joy_mitali,
Brave move on NTPC, good buddy. The fortunes favour the brave, as they say!
Just thought would let you know, and you may be aware already, 92.30-92.50 are critical levels for NTPC. It hit there intraday yesterday and dropped. It is a great support too, as it has jumped to 93-94 levels from here. Should it fall to 91.30 levels, there is a good possibility of a bounc from there. On the other hand if it breaks that level, it can sink sharply. The last possibility seems a bit faint as it is in a bull run after dropping to 82-83 recent past, but who can tell?
The Dow and Nasdaq fell yesterday,and it's going to be a choppy session. Be cautious.

joy_mitali · #3 19th July 2005, 09:26 AM

Hi AMITBE,
What u have said ---I totally agree with u---But what I am stating here is from a traders perspective----I have no plan to carry forward the option till the end of the momth---Because---Time decay factor ---may pull it down to unbelivable lows with an optimistic trend of Bull market---
One must be very clear ---regarding his satisfaction level of profit making----Otherwise option trading regularly can't be ones ball game----
The day (a week before)when NIFTY fell by around 40-45 points----NTPC 90CALL
came down to a level of Re.1.60 ---After having bought 1 lot at Re2.1,I bought another lot at Re. 1.60 ---taking a bet---and averaging my bets to 1.85(2 lots)--
The next day, I sold the 2 lots at 2.45 ----thus making a cool profit of 2000bucks---

Today that same NTPC 90CALL is trading at 2.9(yesterday close---average trading at 3.1)----Had I hold that CALL today I would have made a pofit of 7000 bucks---may be more than 8000 bucks even considering the high price----But then----I could have made an equal loss too---Hope I m able to somewhat justify my bet----
All further critisisms r welcome----
Regards,
joy_mitali

joy_mitali · #4 19th July 2005, 03:55 PM

Hi all,
NTPC today closed at 92.05----The NTPC90PUT closing at .8-----In the early mormning----NTPC went to as low as 91.4(though actual low---91.1)But a strange thing happened at that time----NTPCPUT fell down to a price of .6-----beyond expectation(at that time the price should have been 1.3--1.4 at least)------Later I understood the significance--of such a mean trick----another new lesson learnt------Still carrying the put----bearing significant loss----I still have the feeling---that--market never allows to win public expectation---

Today TISCO 370CALL----gave a good profit to those who traded in the extreme ranges---
Will keep updating---
All comments welcome---Especially some more mean tricks like the one happened today----Plz seniors share ur experiences---
Regards,
joy_mitali

joy_mitali · #5 21st July 2005, 06:20 PM

Hi All--seniors and juniors---

My persistance paid off finally today---I bought another lot of NTPC90PUT at .7 ,thus averaging my two lots to .9-----I gave the sell price at 1.2---And with the falling market It turned once 1.2----where my 2 lots got sold out-----giving me a small profit of 700 bucks---
Yet another interesting (of great value)which I learnt today----that gave a clear cut signal that market was going to fall is as follows---
When NTPC was trading at 92.1 during the trading hrs.,NTPC90 PUT went to as high as .9------and even when bulls were trying to pull the price of NTPCup,--- and NTPC rose to 92.55---92.6--NTPC PUT was still holding the price level of .9(to my greatest astonishment---the price have gone down)---which clearly signals that the bears were definitely coming to the field today!!!!
Another observation was that---The PUT prices were changing much less rapidly than the CALL prices----

Tomorrow I will be interested in ALLAHABAD BANK 95 CALL and 95 PUT----I found on calculation that this will be a better scrip from earnings point of view(as compared to TISCO370 CALLS and 370 PUT)---try to get 80p to 1 Re difference in price----Also NTPC90CALL and PUT will be on my hitlist---

Today I had a talk with sharekhan people---
They r ready to give permission to write(sell) PUT and CALL options---but with Futures MArgin---Seniors plz comment---

Regards,
joy_mitali

miscos · #6 21st July 2005, 06:46 PM

Hi joy,
I am using this forum to get a point clarified, as i do not remember your ***** id to chat with. You have mentioned both put and call option of Allahabad Bank. If AB is likely to go up, should you recommend a buy call and to buy put, if it will comedown? I am just interested to see the option side of the trade.
Regards,
Mishra
***** id: jaadugar1985

joy_mitali · #7 21st July 2005, 11:13 PM

Hi Miscos,
This question is very tricky to answer-----miscos-------One thing which I have learnt paying a lot of price---and am still learning----the market can play lot of mean tricks----moreover---option traading involves a lot of calculations----U must study a bit regarding Black's model of option pricing calculation---Also know about the factors which affect option pricing----but more than that---u need to develop that intution----Remember ---option trading is not meant for naked calls and puts-----which people do accepting a lot of risk---

There r some gems of posting-----related to option trading----specially those by IvanBoesky-----hope u all read them----
Now ur answer---
U should logically buy calls when price is increasing----and ---buy puts when market is falling----but then----one thing keep in mind----U can never beat the market----U just have to think like the market does(ie,the ghotalas which the bulls and the bears make in the market)---when u will become pro at it----Then sky will only be ur limit---

Plz Seniors----make necessary comments----IvanBoesky,CreditViolet,Traderji----U pros can only tell about a lots of fillers existing in between the lines----Hope u contribute more----not those written in books----but something more Plz----which can only enrich this great fascinating subject of stk Market----

Regards,
joy_mitali

miscos · #8 22nd July 2005, 03:59 PM

Dear Joy,
Thank you very much. Today's straddle strategy by Saint (posted in another thread)is also a very nice write up. I agree as you have advised, care4ful watch of market, study and understanding the basics plus training the mind in tune will help us. I am a learner and have learnt a lot from this forum.
Regards.

renerwest · #9 30th August 2005, 09:50 PM

hi joy
iam relatively new to options, can u suggest me some calls and puts for intraday trading.

joy_mitali · #10 21st October 2005, 02:08 AM

Hi everybody,
This is for those---who r ready to take risks

only for those who r not afraid to loose 1000--1500bucks)---(Brok. must be at most 7 paisa or less---)
Buy VSNL320CALL @2.75---2.85/lot(if possible)-----target S.P.---3.6+(Stop_Loss2.5---2.6)---Those ready to take risk---can set their own S.L.
Buy NTPC100CALL @1.1/lot(if possible)------------target S.P.----1.5+
(Stop Loss 0.75))---Those ready to take risk---can set their own S.L.---For them--Buy another lot or 2 at .7
SATYAM 600CALL is intersting---but should be taken with 580PUT--
Regards,
joy_mitali

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