Option Buy Recomendations

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistence at 5243
Support at 5153

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend check strategy posted in 1st post of this thread.

Regards

 

[susobhan]

Sir,

I am trying to update time wise nifty value,

Time----------Price--------Diff----------Trade
09.05 AM------5236.60------0-------------No
09.35 AM------5235.00------(-1.60)-------No
10.00 AM------5232.6-------(-2.40)-------No
10.30 AM------5217---------(-15.60)------No
12.30 PM------5219---------2.00----------No
03.00 PM

Regards

 

[naharchetan]

Dear All,

I read in one of the previous threads the below post on pionage 2 and 3

I need help regaring options.I bought a Nov-150 call of neyveli lignite. Lot size-5900. Nowthe current pice is 205 and i want to exercie the call. So can i exercise it now. And if yes how much money i need to pay more. I am not able to square off as its very illiquid now. i bought the call at Rs15. Please advice.

Please can you advise what exercising an option means? is this also possible for Nifty? and when can we do this and how does it work?

 

[naharchetan]

Dear Ghosh Sir,

As per the 1st thread; I entered in to the following paper trade position since Nifty was up 20 points at around 9.30 AM

Bought call option at 9.30 AM
Strike 5100 @ 135.25
SL set at 94 (30%)
SL set at 108 (20%)

However the prices fell further down and will probably end at 125-126 levels for today (I am writing this at 2.30PM) Just wanted to check the following:

- Did I enter in the correct position?
- Did the price fall due to the month nearing expiry or did the trend change unexpectedly today?
- What should be my next course of action in such a situation

Sorry but I am a new trader and would like to know if I have done something wrong; and not trying to prove your strategy wrong.

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistence at 5260
Support at 5188

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend check strategy posted in 1st post of this thread.

Regards

 

[ghosh_ak34]

Dear All,

I read in one of the previous threads the below post on pionage 2 and 3

I need help regaring options.I bought a Nov-150 call of neyveli lignite. Lot size-5900. Nowthe current pice is 205 and i want to exercie the call. So can i exercise it now. And if yes how much money i need to pay more. I am not able to square off as its very illiquid now. i bought the call at Rs15. Please advice.

Please can you advise what exercising an option means? is this also possible for Nifty? and when can we do this and how does it work?

Dear naharchetan,

When you exercise you need to buy the stock at CMP, qty = lot size X no. of lots traded with. You need to pay the difference between the total price of stock and the product of price of option & lot size X no. of lots.

If you do not exercise then, by expiry the premium is automatically credited to your account.

In India normally the settlement is done in cash. So, you need not to buy the stock in this case. Same is true for Nifty. Exercise is done at expiry. But you need to request for it in advance. Talk to your broker.

Regards

 

[ghosh_ak34]

Dear Ghosh Sir,

As per the 1st thread; I entered in to the following paper trade position since Nifty was up 20 points at around 9.30 AM

Bought call option at 9.30 AM
Strike 5100 @ 135.25
SL set at 94 (30%)
SL set at 108 (20%)

However the prices fell further down and will probably end at 125-126 levels for today (I am writing this at 2.30PM) Just wanted to check the following:

- Did I enter in the correct position?
- Did the price fall due to the month nearing expiry or did the trend change unexpectedly today?
- What should be my next course of action in such a situation

Sorry but I am a new trader and would like to know if I have done something wrong; and not trying to prove your strategy wrong.

Dear naharchetan,

We do not trade in near month Nifty options using this strategy. We trade as per this strategy till 20th of the month.

Regards

 

[naharchetan]

Ok Thanks Mr Ghosh; I can conclude that the unexpected change was due to the date of expiry nearing thanks again

 

[naharchetan]

Dear Sir,

Any strategy that we can use from the 20th till the end of the month?

 

[naharchetan]

Dear Sir,

When would you usually reccomend to exercise an option and why?