need help in option(fno)!

ravi1967 · #71 24th June 2006, 10:57 PM

hai, always do not trade naked options. that is just buying/selling puts/options. Options are long term strategies ( 1 month/2month/3month) . in indian senario, only 1 month options are traded.buying doing naked options, you are timing the market.no one has succeeded till date in this as it next to impossible to be correct always. so always go for combinations ie, buy 2900 puts and sell 3100 call, so that in case 2900 is far off, your investment in 2900 put is reduced. also if 2900 is reached, you get extra profit in 3100 call. always be patient and wait for the right price for your options.book profits/loss if the option prices move 50% either way.dont wait for turnaround, unless your patience is backed by TA.option writing is the most profitable way,as most options are not exercised.options writing is highly risky and you can loose a large sum easily.so take care and trade. always sell when volatility is high and expect the volatility to settle down, so that the price is range bound as per your calculations.
bye
ravi

narayan78 · #72 26th June 2006, 09:27 PM

hi everybody!

I had bought 2800 PE for 33 and 3000 CE for 80.

and their current market price are 15 and 21 respectively.

only three days left for expiry. (jun 29)

what i can do effectively....!

thanking your,
narayan.

tanewbie · #73 26th June 2006, 11:06 PM

Dear Narayan

On what basis u bot 2800 puts and 3000 calls?

To trade in options you need to use technicals, otherwise it will be difficult to break even.
If u have live data then try using atleast a moving average trading system.

narayan78 · #74 28th June 2006, 01:53 AM

hi tanewbie!

actually i bought call and put because nifty was so volatile(call option went 93 as nifty reached 3000 pooints ) but these days it's not making any remarkable move it's moving around 2900.

thanks for replying,

i have live intraday chart with power india bulls software. how can i make use of it.

thank u,
narayan.

tanewbie · #75 28th June 2006, 08:01 PM

Hi Narayan
Give your ***** id we can communicate and get things moving.

narayan78 · #76 29th June 2006, 11:26 PM

hi tanewbie,

very nice of u to come forward to help.

my id is narayan4m@*****.com.

thank u very much,

narayan.

narayan78 · #77 1st July 2006, 12:53 AM

hi tanewbie,

u made a great help and gave new hope to me,

u r id should be TA EXPERIENCED

,

thanking u,

narayan.

GKHERA99 · #78 16th July 2006, 05:40 PM

Which Is The Link Which Gives Open Interest And Volume For Stocks

pujji · #79 17th July 2006, 06:44 PM

Quote:

Originally Posted by vince

Narayan78,

Though your questions are not clear,

You can aquare off your purchased options at any time.

You can short sell an option if you have the required margin in your account.

All F & O contracts expire on the last thursday of the month automatically if not squared off.

Dear Narayan

I have sharekhans terminal, and I never could short sell call options, when contacted their RM's they said to buy put options, is that the same thing??
regards

Agilent · #80 17th July 2006, 08:01 PM

Quote:

Originally Posted by pujji

Dear Narayan

I have sharekhans terminal, and I never could short sell call options, when contacted their RM's they said to buy put options, is that the same thing??
regards

Pl read a good book b4 starting derivatives. You can't afford to gather random or piecemeal knowledge (as in Google) here. AND : do mock trading for a couple of mths at least, to get the hang of it. (How safe wd u feel being flown in a plane by a rookie pilot who has never undergone simulator training, and has mere theoretical gyan ?)

Its safer to buy Put optons because the max u can lose is the premium you pay (the cost of the option)

On the other hand , if u short sell 'naked' calls, you can (in theory) lose an infinite amt if those are simply not available if and when u are forced to square off

Former strategy is profitable only if the price of the 'underlying' moves down sufficiently, whereas latter can be profitable even if market remains stagnant. So if u are very bearish, do the former, but if u are mildly bearish, and have hordes of cash to provide as margin, sell calls.

Am I right , experts ?

AGILENT

PS And pl don't query the meaning of naked calls .... look up the book

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