Nifty Outlook - Where It Is Headed -vijay

We May Be One Of The Very Few Who Have Predicted This Fall In The Market At The Beginning Of This Settlement. If You Had Followed Our Intraday Calls Regularly You Could Have Observed That Every Day We Informed Of This Fall And Advised Caution. We Had Even Predicted The Level Of 4200 For Nifty Before This Settlement. Right From Our Intraday Call Dated 2.6.08 ALMOST EVERY DAYWe Have Been Advising Caution.

We Still Feel Nifty Has Some More Down Side Left. Temporarily It May Pull Back From Around 4200 And Things Are Not Rosy For The Short Term. Eventually A Fall To Around 3900 Is Not Ruled Out.
If There Is Any Reversal In The Trend It Will Be Advised In The Intraday Calls Column.

Medium To Long Term Investors Can Buy Stocks Which Are Excessively Beaten Down In This Fall At Lower Levels..

I am holding (bought) nifty-4500-call @ Rs20 (Jun-26) yesterday after earning a lot by selling nifty-4400-put at Rs 88 (bought at 54.00) ....
do u think it may reach or any upside left in nifty in the next two days. I'm new to option and yet I played a very high risk game by buying nifty-4500 calls and thats too in large number i.e. 800 calls. Im gettin nervous and surprised (tht y I went for it ... )

Any suggestions...?

Call Buying Is Not A Big Risk Game Unless It Is Bought In Very Large Quantities Without Proper Understanding Of The Markets. I Cannot Make Out How Many Calls Have Been Bought 800 Calls Mean What? 16 Lots Or 800 Lots.

Any Way Nifty Is Expected To Open Lower On Monday And Below 4300 It May Touch Around 4210 Levels From Where A Short Term Pull Back Is Possible. On The Higher Side Nifty Has Strong Resistance Around 4440 Levels For The Next Two Days, Above Which It May Reach 4525. If You Hold Very Large No. Of Options Exit Most Of Them Around 4440 Levels. If That Level Is Reached Before Tuesday You May Make Some Profit Out Of It. For The Remaining You May Wait For A Level Of 4520 Only If Nifty Closes Above 4450.

Vijay

It is 16 lots... that is 16 x 50 = 800 calls @ Rs 20 (on average)........ 800 lots hota to heart attack hi aa jaata ...
Wht do u suggest ... should I exit by tuesday, whatever the market is or wait for wednesday... as Im new to option I dnt knw what happen to it when it get nearer to expiry... will it vanish to zero if market goes further down toward 4100 by wednesday or thursday... no idea....

Punnu, options lose their value rapidly as the expiration date comes near. There are only 4 more sessions to trade June options. I don't know what percentage of short positions built up in the market are covered, but there would definitely be volatility. Keep your finger on the sell button when you see some pullback. To be frank, I don't see pullbacks having much stregth though. On the positive side, since you have picked a top-5 active option, you'd have a decent chance of getting out with a slight profit or a small manageable loss.
Paresh