NIFTY LEVELS : R1 - 4800 R2 - 4830 R3 - 4860 ..... S1 -4650 S2- 4630 S3 - 4600
Trigger level 4700
Sunday, August 30, 2009
RAMZAN MUBARAK
Since the holy month of RAMADAN has started I will not be having time to actively post my views or strategies during the month of Sep 09.
But I will try to post articles from time to time.
Bye Guys & happy trading.
But I will try to post articles from time to time.
Bye Guys & happy trading.
Nifty May Touch 4850 Level
Nifty May Touch 4850 Level in the comming weeks. It may sooner than latter.All the (F & O ) indicators SUGGEST a sustainable rally of up to 150 odd points with support between 4600 -4700.
Technical factors such as inverted hammer pattern also suggest the same.
Traders are writing 4900 & 5000 calls as they do not expect the index to close / move beyond 4900 level.
The upmove is expected as the average trade in sep futures was around 4700 level though the nifty dipped to the intraday low of 4650 level which suggest that there was no panic in the market though the nifty touched 4650 level.
The closing of 4732 was achived mainly due to short covering of index heavy weights such as RIL, SBI etc.,
But ,
When all the experts on TV , FORUM, PAID SITES NEWS PAPERS are predicting a rally beyong 5000 I will try to Short sell 4900,5000 , 5100 & 5200 Calls when the spot nifty trades in between 4810-4850. Although I will be closely monitoring my positions & my stop loss will be say for 4900 call .... 4900+premium amt ( rate at which short sold) = Spot Nifty ... like wise stop loss for 5000/5100/5200 calls
Let the experts be on one side I will be on the OTHER side & hope the ALMIGHT will prove the heard wrong.
I always bear in mind that " ALWAYS EXPECT THE UNEXPECTED FROM THE MARKET"
Technical factors such as inverted hammer pattern also suggest the same.
Traders are writing 4900 & 5000 calls as they do not expect the index to close / move beyond 4900 level.
The upmove is expected as the average trade in sep futures was around 4700 level though the nifty dipped to the intraday low of 4650 level which suggest that there was no panic in the market though the nifty touched 4650 level.
The closing of 4732 was achived mainly due to short covering of index heavy weights such as RIL, SBI etc.,
But ,
When all the experts on TV , FORUM, PAID SITES NEWS PAPERS are predicting a rally beyong 5000 I will try to Short sell 4900,5000 , 5100 & 5200 Calls when the spot nifty trades in between 4810-4850. Although I will be closely monitoring my positions & my stop loss will be say for 4900 call .... 4900+premium amt ( rate at which short sold) = Spot Nifty ... like wise stop loss for 5000/5100/5200 calls
Let the experts be on one side I will be on the OTHER side & hope the ALMIGHT will prove the heard wrong.
I always bear in mind that " ALWAYS EXPECT THE UNEXPECTED FROM THE MARKET"
If u all would recall that on 24 th Aug 09 I had posted the following -
"Sep 09 Option premiums are at a premium.While premiums will drop post settlement, the spread risk -reward ratios may actually be better now than 4 secession down the week"
& On 25 Th Aug 2009 had Short sold Sep 5000 ce @ 60.35 at 2.30 pm
Nifty was around 4670-4690
After Expiry on 28 Aug 09 NIFTY @ 4732
Though nifty has risen almost 50 points the premium has not risen in value in fact 5000 Sep CE is @ 59.50 It is also true for 4800 & 4900 CE.
Hope it is clear what I ment to SAY ON 24 Aug 09
As advised if any one had short sold 5000 ce @ 60 -63 , 4900 ce @ 90-100 or 4800 ce @ 120-130 on the next /same day as published on the blog then............................
On 25 Aug all Could have booked profits ---- 5000 ce @ 41-45 , 4900 ce @ 64-70 or 4800 ce @ 95-100
Since I am willing to take risk I am holding my short positions in 4900 ce & 5000 ce @ 90 & 60 (2 lots each ) which I may square up at any moment when I am convinced that I have been caught on the wrong foot. I will try to post the same as and when I do.
"Sep 09 Option premiums are at a premium.While premiums will drop post settlement, the spread risk -reward ratios may actually be better now than 4 secession down the week"
& On 25 Th Aug 2009 had Short sold Sep 5000 ce @ 60.35 at 2.30 pm
Nifty was around 4670-4690
After Expiry on 28 Aug 09 NIFTY @ 4732
Though nifty has risen almost 50 points the premium has not risen in value in fact 5000 Sep CE is @ 59.50 It is also true for 4800 & 4900 CE.
Hope it is clear what I ment to SAY ON 24 Aug 09
As advised if any one had short sold 5000 ce @ 60 -63 , 4900 ce @ 90-100 or 4800 ce @ 120-130 on the next /same day as published on the blog then............................
On 25 Aug all Could have booked profits ---- 5000 ce @ 41-45 , 4900 ce @ 64-70 or 4800 ce @ 95-100
Since I am willing to take risk I am holding my short positions in 4900 ce & 5000 ce @ 90 & 60 (2 lots each ) which I may square up at any moment when I am convinced that I have been caught on the wrong foot. I will try to post the same as and when I do.
Summary of all AUG 09 Calls POSTED FOR THE BENEFIT OF ALL VISITORS OF THE BLOG
1ST STRATEGY Post on : 2 Aug 09
Total = 15000/- profit in the strategy
2nd BULLISH STRATEGY Post on : 4 Aug 09
Total = 2100/- loss in the strategy
3nd STRATEGY Post on : 9 Aug 09
Net profit in the strategy = Rs 3300/-
4 th STRATEGY Post on : 9 Aug 09
Net Profit Rs 5750/- profit in the strategy
5th BULLISH STRATEGY Post on : 9 Aug 09
Net Profit Rs 2400/- profit in the strategy
Total Net PROFIT For the Month : 24,350/-
Hope all enjoyed the PROFITS.........................!!!!!!!!!!!!!!!!!!!!!!
Total = 15000/- profit in the strategy
2nd BULLISH STRATEGY Post on : 4 Aug 09
Total = 2100/- loss in the strategy
3nd STRATEGY Post on : 9 Aug 09
Net profit in the strategy = Rs 3300/-
4 th STRATEGY Post on : 9 Aug 09
Net Profit Rs 5750/- profit in the strategy
5th BULLISH STRATEGY Post on : 9 Aug 09
Net Profit Rs 2400/- profit in the strategy
Total Net PROFIT For the Month : 24,350/-
Hope all enjoyed the PROFITS.........................!!!!!!!!!!!!!!!!!!!!!!
DETAILED Review of all calls posted in the month of AUG 09
Let us review of all the calls & strategies posted in this blog for the month of AUG 09 :-
1ST STRATEGY Post on : 2 Aug 09 Advised to
Short sell 4700 Aug 09-CE @ 151.20
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Profit of Rs 7550/-
&
Short sell 4600 Aug 09-PE @ 149
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 7450/-
Total = 15000/- profit in the strategy.
2nd BULLISH STRATEGY Post on : 4 Aug 09 Advised to
Buy 4700 Aug 09-CE @ 154
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Loss of Rs 7700/-
&
Short sell 4800 Aug 09-CE @ 112
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 5600/-
Total = 2100/- loss in the strategy.
3nd STRATEGY Post on : 9 Aug 09 Advised to
Short sell 4500 Aug 09-CE @ 133
Closing at expiry (27.08.09 ) 185 ..... implies 50 ( 1 lot) x 151 = Rs 9250/-
Cost price: 50 ( 1 lot) x 133 = Rs 6650/- , Net Loss : 9250-6650= Loss of Rs 2600
&
Short sell 4400 Aug 09-PE @ 118
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 118 = Profit of Rs 5900/-
Net profit in the strategy = Rs 3300/-
4 th STRATEGY Post on : 9 Aug 09 Advised to
Short sell 4700 Aug 09-CE @ 63.00
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Profit of Rs 3150/-
&
Short sell 4200 Aug 09-PE @ 52.00
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 2600/-
Total = 5750/- profit in the strategy.
5th BULLISH STRATEGY Post on : 9 Aug 09 Advised to
Buy 4500 Aug 09-CE @ 133
Closing at expiry (27.08.09 ) 185 ..... implies 50 ( 1 lot) x 185 = Rs 9250/-
Cost price: 50 ( 1 lot) x 133 = Rs 6650/- , Net Profit : 9250-6650= Profit of Rs 2600
&
Short sell 4600 Aug 09-CE @ 94
Closing at expiry (27.08.09 ) 88 ..... implies 50 ( 1 lot) x 88 = Rs 4400/-
Cost price: 50 ( 1 lot) x 94 = Rs 4700/- , Net Loss : 4700-4400= Loss of Rs 200
Total PROFIT in strategy = Profit of Rs 2600.00 - Loss of Rs 200.00 = Profit of Rs 2400
1ST STRATEGY Post on : 2 Aug 09 Advised to
Short sell 4700 Aug 09-CE @ 151.20
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Profit of Rs 7550/-
&
Short sell 4600 Aug 09-PE @ 149
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 7450/-
Total = 15000/- profit in the strategy.
2nd BULLISH STRATEGY Post on : 4 Aug 09 Advised to
Buy 4700 Aug 09-CE @ 154
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Loss of Rs 7700/-
&
Short sell 4800 Aug 09-CE @ 112
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 5600/-
Total = 2100/- loss in the strategy.
3nd STRATEGY Post on : 9 Aug 09 Advised to
Short sell 4500 Aug 09-CE @ 133
Closing at expiry (27.08.09 ) 185 ..... implies 50 ( 1 lot) x 151 = Rs 9250/-
Cost price: 50 ( 1 lot) x 133 = Rs 6650/- , Net Loss : 9250-6650= Loss of Rs 2600
&
Short sell 4400 Aug 09-PE @ 118
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 118 = Profit of Rs 5900/-
Net profit in the strategy = Rs 3300/-
4 th STRATEGY Post on : 9 Aug 09 Advised to
Short sell 4700 Aug 09-CE @ 63.00
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Profit of Rs 3150/-
&
Short sell 4200 Aug 09-PE @ 52.00
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 2600/-
Total = 5750/- profit in the strategy.
5th BULLISH STRATEGY Post on : 9 Aug 09 Advised to
Buy 4500 Aug 09-CE @ 133
Closing at expiry (27.08.09 ) 185 ..... implies 50 ( 1 lot) x 185 = Rs 9250/-
Cost price: 50 ( 1 lot) x 133 = Rs 6650/- , Net Profit : 9250-6650= Profit of Rs 2600
&
Short sell 4600 Aug 09-CE @ 94
Closing at expiry (27.08.09 ) 88 ..... implies 50 ( 1 lot) x 88 = Rs 4400/-
Cost price: 50 ( 1 lot) x 94 = Rs 4700/- , Net Loss : 4700-4400= Loss of Rs 200
Total PROFIT in strategy = Profit of Rs 2600.00 - Loss of Rs 200.00 = Profit of Rs 2400
Tuesday, August 25, 2009
Trade executed today
The following trade has been executed today 25/08/09 :
Short sold Sep 5000 ce @ 60.35 at 2.30 pm
Margin blocked : 12,500/- per lot.
Total 2 lots executed.
Will short sell another 2 lots (Sep 5000 ce) at the range 70-80 if the opportunity arises.
Lets see ........................................................................
Squared off my previous position as given below :
Had short sold Aug 4300 pe @ 30 (refer to my earlier post dt 21/08/09)
Today squared up at @ 1.45
Short sold Sep 5000 ce @ 60.35 at 2.30 pm
Margin blocked : 12,500/- per lot.
Total 2 lots executed.
Will short sell another 2 lots (Sep 5000 ce) at the range 70-80 if the opportunity arises.
Lets see ........................................................................
Squared off my previous position as given below :
Had short sold Aug 4300 pe @ 30 (refer to my earlier post dt 21/08/09)
Today squared up at @ 1.45
Monday, August 24, 2009
Risky NIFTY Options Strategy for Sep Strike
Sep 09 Option premiums are at a premium.While premiums will drop post settlement, the spread risk -reward ratios may actually be better now than 4 secession down the week.
Therefore I would try to execute the following trades this week (keep an eye on any upmove intraday ) --
Short sell 4900 call at the range of 100+ (Now it is @ 77)
Aprox margin money req - 16000/-
Short sell 4800 call at the range of 120+ (Now it is @ 108)
Aprox margin money req - 21000/-
It will be much safer option to short sell 4900 call @ 90-100+
When the markets correct we will focus on short selling put option & settle for a short strangle with a focus on range bound strategy.
Therefore I would try to execute the following trades this week (keep an eye on any upmove intraday ) --
Short sell 4900 call at the range of 100+ (Now it is @ 77)
Aprox margin money req - 16000/-
Short sell 4800 call at the range of 120+ (Now it is @ 108)
Aprox margin money req - 21000/-
It will be much safer option to short sell 4900 call @ 90-100+
When the markets correct we will focus on short selling put option & settle for a short strangle with a focus on range bound strategy.
Sunday, August 23, 2009
Nifty future levels for : 24th Aug 09
Nifty future levels for , 24th Aug 09:
Resistance : R3 - 4738, R2 - 4650, R1 - 4590,
Trigger : 4490,
Support : S1 - 4460, S2 - 4340, S3 - 400.
Resistance : R3 - 4738, R2 - 4650, R1 - 4590,
Trigger : 4490,
Support : S1 - 4460, S2 - 4340, S3 - 400.
Friday, August 21, 2009
My VIEW on Nifty
Today Nifty has closed to a very trick level @ 4528
Markets could move up if the index closes above the supply zone 4530 to 4560 . If the market is not able to absorb the supply another short correction is on the cards.
Lets hope for the best
Markets could move up if the index closes above the supply zone 4530 to 4560 . If the market is not able to absorb the supply another short correction is on the cards.
Lets hope for the best
Option Decay
Taking advantage of OPTION DECAY concept (F & O since expiry is on 27/08/09) I have executed the following trade Today 21/08/09 :
Short sold 4300 Strike put @ 30.00 Time 12:27 PM
Margin money blocked per lot : 19,000/-
Todays Closing : @ 9.95
Short sold 4400 Strike put @ 25.25 Time 03:18 PM
Margin money blocked per lot : 19,000/-
Todays Closing : @ 24
Short sold 4300 Strike put @ 30.00 Time 12:27 PM
Margin money blocked per lot : 19,000/-
Todays Closing : @ 9.95
Short sold 4400 Strike put @ 25.25 Time 03:18 PM
Margin money blocked per lot : 19,000/-
Todays Closing : @ 24
Sunday, August 16, 2009
Anger is our BIGGEST enemy
Thought : Worth Sharing LOVE HAS NO LIMIT......
While Dad was polishing his new car,
his 4 yr old son picked stone & scratched lines on the side of the car.
In his anger, Dad took the child's hand & hit it many times, not realizing he was using a wrench.
At the hospital, his child said "Dad when will my fingers grow back?"
Dad was so hurt.
He went back to car and kicked it a lot of times.
Sitting back he looked at the scratches, child wrote "I LOVE YOU DAD"
Anger and Love has no limits...
Likewise we also need to control our emotions while trading in the stock market . Most of us may have experienced that after a successful trade we may randomly increase the frequency or the traded qty of trade ...... Like wise after a loss making trade we also do the same ..... the loss weighs heavy on our mind & in fit of uncontrollable emotional bust with the object of recovering losses .... (Read : to take revenge on the markets) we take a wrong decision (increasing trading vol, risky trade with risk to reward heavily tilted towards risk etc.) often leading to heavier losses.
Emotions prevents us from maintaining DISCIPLINE which is very vital to sustain in this highly volatile stock market.To me it is one of the most important factor to be considered while trading ..... CONTROLLED EMOTIONS
While Dad was polishing his new car,
his 4 yr old son picked stone & scratched lines on the side of the car.
In his anger, Dad took the child's hand & hit it many times, not realizing he was using a wrench.
At the hospital, his child said "Dad when will my fingers grow back?"
Dad was so hurt.
He went back to car and kicked it a lot of times.
Sitting back he looked at the scratches, child wrote "I LOVE YOU DAD"
Anger and Love has no limits...
Likewise we also need to control our emotions while trading in the stock market . Most of us may have experienced that after a successful trade we may randomly increase the frequency or the traded qty of trade ...... Like wise after a loss making trade we also do the same ..... the loss weighs heavy on our mind & in fit of uncontrollable emotional bust with the object of recovering losses .... (Read : to take revenge on the markets) we take a wrong decision (increasing trading vol, risky trade with risk to reward heavily tilted towards risk etc.) often leading to heavier losses.
Emotions prevents us from maintaining DISCIPLINE which is very vital to sustain in this highly volatile stock market.To me it is one of the most important factor to be considered while trading ..... CONTROLLED EMOTIONS
Saturday, August 15, 2009
Week Ahead : 17 th to 21st Aug 09 THOUGHTS
Bullish formation on Nifty. Nifty Weekly Supports 4375 -4300, Weekly Resistances 4720-4800.
Nifty POSSIBLY strong above 4600 & weak below 4500 for the week.
Trade with STRICT STOP LOSS.
Nifty POSSIBLY strong above 4600 & weak below 4500 for the week.
Trade with STRICT STOP LOSS.
Week : 10 th to 14th Aug 09 REVIEW
Nifty traded weak during the start of the ( 1st 1-2-3 days) week. As already cautuioned u all on 12 th Aug that NIFTY is seeking direction ..... & on Wednesday saw a sharp intraday recovery from 4360. 13 th Aug saw a GREAT CLOSING , while on Friday Nifty was unable sustain above 4600 resistances.
Wednesday, August 12, 2009
Nifty
Trade with caution .... Feel markets are seeking for direction.Do not trade with volume & APPLY STRICT STOP LOSS.
Will review all positions at expiry.
Will review all positions at expiry.
Monday, August 10, 2009
NIFTY Unpredictable
Why not use the opportunity to invest in selected stocks in a systematic manner ?
Though the WORLD markets are up we ended in RED.
Any dip to around 4250-4300-4350 may be an opportunity to sell puts .
REMEMBER the markets will always prove the MAJORITY of us wrong.
Though the WORLD markets are up we ended in RED.
Any dip to around 4250-4300-4350 may be an opportunity to sell puts .
REMEMBER the markets will always prove the MAJORITY of us wrong.
Sunday, August 9, 2009
Options for U
Bullish Strategy With LOW Risk
Trade with this Strategy if U are bullish on the MARKET & take position with limited RISK :
Trade with this Strategy if U are bullish on the MARKET & take position with limited RISK :
| Strategy | Profitable Above | Total Cost | Max Profit | Max Loss | ||||||||||||||||||||||
| Bull Call Spread | ||||||||||||||||||||||||||
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Another Range bound strategy
| Profitable | Total Inflow | Max Profit | Max Loss | ||||||||||||||||||||||
| Act | Strike | At | Prem | Above | Below | ||||||||||||||||||||
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Option Strategy - NIFTY
If U feel the Market will be RANGE bound between 4149 TO 4750
A strategy for U :
My Strategy WILL be : Tomorrow the market may open with a GAP UP, What ever be If the market is UP execute the call option ... if DOWN then execute put option to increase your leverage. Ideal if the market goes down sell the put & wait for the market to recover to sell the call.
A strategy for U :
| Strategy | Profitable | Total Inflow | Max Profit | Max Loss | ||||||||||||||||||||||||
| Short Strangle | ||||||||||||||||||||||||||||
| Contract | Act | Strike | At | Prem | Above | Below | ||||||||||||||||||||||
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My Strategy WILL be : Tomorrow the market may open with a GAP UP, What ever be If the market is UP execute the call option ... if DOWN then execute put option to increase your leverage. Ideal if the market goes down sell the put & wait for the market to recover to sell the call.
Tuesday, August 4, 2009
If U are Bullish then : Options Startegy for U
| Strategy | Profitable Above | Total Cost | Max Profit | Max Loss | ||||||||||||||||||||||
| Bull Call Spread | ||||||||||||||||||||||||||
| Contract | Act | Strike | At | Prem | ||||||||||||||||||||||
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Sunday, August 2, 2009
Good MUTAL FUND Picks for S I P
I would personally invest in the following Mutual Fund Schemes through SIP.
1> Reliance Regular Savings Scheme
2> DSPBR Equity
3> HDFC 200
4> Birla Front Line Equity
5 > Sundaram Select Mid cap
So if u are intending to invest 10,000 p.m then invest 2000 in each of the above mentioned schemes.
A BLEND of Front Line & Midcap Stocks
1> Reliance Regular Savings Scheme
2> DSPBR Equity
3> HDFC 200
4> Birla Front Line Equity
5 > Sundaram Select Mid cap
So if u are intending to invest 10,000 p.m then invest 2000 in each of the above mentioned schemes.
A BLEND of Front Line & Midcap Stocks
Option Trading Strategy if U Feel NIFTY will trade between 4300 to 5000 this MONTH
| Strategy | Profitable | Max Loss | Max Profit | Max Loss | | |||||||||||||||||||||||
| Short Strangle | ||||||||||||||||||||||||||||
| Contract | Act | Strike | At | Prem | Above | Below | ||||||||||||||||||||||
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