Trading in Nifty Options.

As Nifty remains rangebound, I find it very comforting to play in ACTIVE Nifty options like 4400 put, 4600 call, 4500 put and call. It is nice to hedge your positions with, and nice to take a contrarian call too.

4400 put - touched a low of 15 yesterday which was an excellent buy. It closed at 31.45. I expect this to go up as markets slide down. Am looking for 50, 60, 70, 80, 90, 100 levels now depending on mkt. conditions, of course.

4600 call - almost hit 100 and closed down at 58.10. It would be good to write this option right now, but safer to wait till (and if) the market starts reversing. Although in all honesty I don't see any upside left this week. So wait till this call goes to 30 levels, then start buying slowly.

The capital required is less, and the potential income is much more. I would like to hear from other people who also deal in Nifty options.

Paresh

I've bought nifty 4400 put for 54.7 .... shld wait for 1-2 days .. whts ur take on it

yaar, 1000 put le rakhe hain (nifty 4400) .. on avg 54.70 .... wht do u say? will it reach 60-70 range....?

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What's considered as enough money... Just a lil' bit more....
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“In this market, the person who makes money will be he who knows when to do nothing."

4400 put currently trading at 54.10 (nifty spot at 4488) so you don't have much to worry. You're almost in +ve territory even as I write this at 10:20AM. Start booking profits little by little as Nifty goes down today or in the next 2-3 sessions.

My Q is: I want to meet you as a guy who buys 1000 puts and then asks whether he is going to make money on it or not?

My strategy in options trading is to buy and sell looking at Nifty levels, and market sentiments. And book profits every chance you get. More later. All the best.

Your welcome anytime at my home...
...... Actually I didnt mention that it was my first trade in option (infact in derivatives mrkt...)... thats y I was a bit nervous.... first time mein hota hai na sabke saath ...
Anyways thanks for ur valuable comments...

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“In this market, the person who makes money will be he who knows when to do nothing."

Hello Punnu,

I am happy for you that you made lots of profits. I become very weary when I make sudden profits at first try. That's what happened to me when I first ventured into F&O, and later it kicked me badly in the behind.

I believe we are all here to share out thoughts, comments, and whatever experience we have gained from the stock market. I conciously avoid making any personal comments on anyone. So this is just a friendly advice. Take it for what it's worth.

All the best.
Paresh

Thanks for the advice...
Actually I am new to options and so a bit nervous

Anyways thanks 4 ur valuable comments...

Bye...

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“In this market, the person who makes money will be he who knows when to do nothing."

Buy the following two most active Nifty options for a good short term profit:

June 4200 PUT: LTP 36.65, High 71, Low 20.70.
June 4300 CALL: LTP 47.05, High 88, Low 40.

As the market bounces up and down, you'll have a chance to make a decent profit in both. You can keep the today's lows mentioned above as Stop Loss levels, but try to wait till at least Rs. 10 below your buying price (ie. Rs. 500). If the market opens gap up, buy the put first as it will be cheaper, and vice versa for the call.

July options are very expensive so stay away from them. There is always time AFTER June option expires. And July gives us a full month to play with it.

Paresh

Hope you all made lots of money. I certainly did today - thanks to the market volatility. When the mkt opened a slight gap up, there was a good chance to buy 4200 Puts (around Rs. 30). It went down to 23 but then kept going up. One could have multiple plays here. Ultimately it hit Rs. 149 high and closed at Rs. 145!!!

4300 Calls went up to about Rs. 57 in the morning, which was a good time to get out if you had purchased around Rs. 46 at the opening. I didn't get out, hit my stoploss, came down to Rs. 15-16 levels when I got back in, got out over Rs. 22, then crashed towards the end to close around Rs. 11. So I have bought 5 4300 Calls as the downside from here is limited, and a good chance of a bounce up.

Stick with the most active options which are 4200 Puts, 4300 Calls and 4300 Puts to play some more for the next two days before expiry. All the best.

Paresh

The thread below discusses buying Nifty Options depending on how the markets are behaving currently.

Market is getting OILY...

If one had followed the Option strategy discussed therein, you could be sittting on a neat profit. When Nifty hit high notes today, you could have picked up 4500 PE between 95-100. If you have bought 4200PE around 40-50, no problem. You are already looking at handsome profit in the former, and likely to see 90-100 levels in the latter. I, for one, am holding on to my Puts for better days ahead.

As I said there, this market is too oily (opposite of sticky, folks)

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Paresh
If people put you on the SPOT, ask about FUTURE, and give you no OPTION;
just tell'em "the LONG & SHORT of it is How to Make Money!"
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