Hi Sohan, its nt CB sir's birthday today....

I go through this on web may help to others
AS OPTION TRADER REMEMBER CERTAIN GOLDEN RULES FOR OPTION TRADING

1. DONT HOLD AND SIT TIGHT WITH YOUR OPTION. TRADE EVERY DAY. SAY, YOU HAVE BOUGHT A PUT OPTION AT 100, LETS SAY IT HAS COME TO 90, YOU DONT HAVE TO WAIT FOR IT TO GO ABOVE 100 TO BOOK PROFIT, YOU SELL YOUR OPTION ON MARKETS INTRADAY FALL AND THEN YOU BUY BACK THE OPTION ON MARKET RISE AND POCKET THE DIFFERENCE OF AT LEAST 10 TO 15. AS FAR AS POSSIBLE AVOID CARRYING OVER OF OPTIONS UNLESS YOU ARE SURE OF THE MARKETS NEXT DAY. IF YOU BOUGHT A CALL OR A PUT AT START OF THE MONTH AT 150, YOU WILL FIND ITS VALUE AT 75 OR LESS BY MIDDLE OF THE MONTH SO IF YOU HAVE NOT TRADED DAILY , HALF OF THE VALUE IS LOST BY MID MONTH.

2.WHETHER MARKET GOES UP OR DOWN OR FLAT, OPTION VALUE WILL REDUCE BY AT LEAST 5 POINTS EVERY DAY, SO TRADING DAILY AT LEAST GIVES YOU BACK THE DAILY 5 POINT AUTOMATIC LOSS DUE TO TIME DECAY. SO WRITING OPTIONS (SELLING FRESH A CALL INSTEAD OF BUYING A PUT AFTER MARKET RISE OR SELLING FRESH A PUT INSTEAD OF BUYING A CALL AFTER MARKET FALLS ) HAVE A MUCH BETTER CHANCE OF GAIN THAN BUYING OPTIONS.

3. IF YOUR OPTION VALUE GOES DOWN BY 25% , BOLDLY QUIT THE OPTION. THIS WILL PROTECT YOU FROM SEEING ZERO VALUE FOR YOUR OPTION. THE HABIT OF HOLDING ON TO THE OPTION THINKING THAT IT MAY GAIN AFTER SOME DAYS MAY GIVE YOU ONLY 1 SUCCESS OUT OF 10 ATTEMPTS SO BE BOLD TO QUIT EARLY. (THIS IS THE MOST IMPORTANT POINT IN OPTION TRADING, PEOPLE GENERALLY BOOK BIG LOSS IN OPTIONS WHEN THIS GOLDEN POINT IS NEGLECTED.)

4. DO NOT EXHAUST ALL YOUR MONEY IN BUYING OPTIONS. ONLY TRADE IN 60% OF MONEY AND ALWAYS HAVE 40% RESERVE FOR OPPORTUNISTIC TRADES.

5. THOUGH AVERAGING OF OPTIONS LOOKS VERY ATTRACTIVE, IT IS LIKE SLOW POISON. AVOID AVERAGING AS FAR AS POSSIBLE. ADJUST YOUR MIND TO DO REVERSE TRADE, MEANING IN CASE OF HOLDING 5000 PUT, SELL A LOWER OPTION SAY 4800 PUT IN CASE OF FALL IN MARKETS & RISE IN PUT VALUE, OR IN CASE HOLDING 5000 CALL, THEN ON MARKET RISE WHEN CALL VALUE RISES SELL HIGHER CALL OF 5200 OR IF HOLDING A PUT, BOLDLY BUY A CALL AGAINST THE OBJECTION OF YOUR MIND.

6. THE ABOVE OPTION RULES ARE TIME TESTED AND MOSTLY FOUND TO BE CORRECT. ALTHOUGH MOST OF THE TIME YOUR ANALYST WILL GUIDE YOU WHEN TO BUY OR SELL BUT YOU ON YOUR OWN ALSO BE RIGID ON THE ABOVE 5 GOLDEN RULES FOR OPTIONS. YOU MAY FAIL ONCE BUT 9 OUT OF 10 TIMES YOU WILL NOT REGRET.

7.THE MOST IMPORTANT THING TO BE KEPT IN MIND IS THAT YOU MUST HAVE YOUR OWN MENTAL MUST QUIT LEVELS SAY ABOUT 5 OR 10 POINTS TO AVOID BIGGER LOSS IN CASE THE COMMUNICATION FROM ADVISERS SIDE FAIL DUE TO UNFORESEEN CIRCUMSTANCES.

8.IN CASE YOU ARE HOLDING AN OPTION WITHOUT STOP LOSS OR HEDGING & IT GOES BADLY AGAINST YOU, THEN DO NOT PANIC, AROUND THE END OF THE 3RD WEEK OF THE MONTH QUIT THE OPTION AND BUY THE SAME OPTION OF NEXT MONTH AND AFTER THE MARKET HAVING GONE IN ONE DIRECTION, IT WILL RETRACE SOME AMOUNT TO HELP YOU TO GAIN IN THE NEXT MONTHS OPTION AS THE CURRENT MONTH OPTION WOULD BECOME ZERO IF HELD AGAINST THE CURRENT TREND.

9. THE MOST IMPORTANT POINT TO REMEMBER IN OPTION TRADING IS, IN CASE YOU HAVE BOUGHT A CALL AND IT HAS GONE AGAINST YOU, THEN WHILE AVERAGING BY BUYING ANOTHER CALL AT A LOWER PRICE, NEVER HESITATE TO BUY A PUT ALSO . MEANING EVERY TIME YOU AVERAGE YOUR ORIGINAL OPTION, AT EACH TIME BUY AN OPPOSITE OPTION ALSO. SO EVERY TIME YOU AVERAGE THE ORIGINAL CALL, AT EACH TIME BUY A PUT ALSO ALONG WITH THE CALL . THIS PUT INVARIABLY WILL BE YOUR PROTECTOR AS THE AVERAGED CALL WILL INVARIABLY BECOME ZERO. REMEMBER THIS GOLDEN RULE.

Hi CB, My latest reply to CB ji, Aabha, Ravichandran & Munna is in spam. plz kindly approve it. Thank u.

Hi Kartik,

Thanks a lot

Hi Be!ng Human,

Happy Birthday, Have a Great Year...

Hi BeIng Human,

Many Many Happy Returns Of The Day! May God bless you.......

HI CB/ BEING HUMAN/ KARTHICK.........

WHATS YOUR OPINION ON TATAMOTORS AFTER THE RESULTS I AM CONFUSED ABOUT THE RESULTS EACH CHANNAL IS TELLING SOMETHING.. WHICH I COULDNT UNDERSTAND PLEASE TELL ME I HAVE BOUGHT TATA MOTORS 280CE @ 9.25 TODAY.... MAY I KNOW THE TARGET THIS WEEK.. PLEASE HELP ME........

hi karthik/cb/trade bala/being human
i got reliance infra put 540 @rs 28 now it is 19rs.should i exit or hold it .

ToGuys who plays CASINO, If anybody who is willing/interested in playing Casino or gambling can buy let's say, 10 lots of Nov 6500 CE @ Rs.4.00. This is OTM call and shall be played only on pure speculation basis.

EG:-
Maximum loss is, [10 (lots)*50(lot size) *4(value) = 2000k]
Reasonable profit is, [10*50*(Rs.20) = 10k to 15k or even more.]
This is not applicable to normal traders, it's only for the people who love to test their luck in stock market[ONLY 4 GAMBLERS].