Hi Ghosh,
I did paper transaction this week (21-25 March 11) on the basis of options strategy described on page 1. I have one question regarding breakout above R1:
Last week's S1/R1 were 5300/5500, on 23/03/2011 15:15 Nifty was at 5480.35. Since I was holding a long 5300 CE (Apr 28 series), I had to hedge it overnite with 5500 PE, so I bought a 5500 PE at 15:15.
Now the next day Nifty opened at 5518.25 (price at 09:20) already above R1, whole day we did not get a clear direction of + or - 20 points at various checkpoints, except that there was a gap up opening. So, for me it was a no trade day, I continued holding 5300 CE and 5500 PE as niether target nor SL were hit.
5500PE was exited on 25th opening when SL was hit.
Now my question is, should I have done something with 5500 PE when nifty spot already opened above 5500 and maintained itself there on 24th? Or was it ok to continue holding 5500 PE?
Regards,
HK
PS: the paper trade for last week ended with profit