Intraday calls for 03-06-14
Markets likely to open slightly higher. Support for nifty is at 7230 and resistance at 7450.
No pre-market call for today. Continue to hold Balrampur Chini
9.43am – Book profit in Balrampur Chini at 76.80
12.25pm – If holding Hindalco from past few days, book near 154. Nifty 7100 pe is a hold for now.
Thought for the day: Successful investing is anticipating the anticipation of others. (John Maynard Keynes)
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K K Says:
June 3rd, 2014
Posted at: 1:08 pm
Hi TradeWarrior,
Hi Rohit,
Option selling is both rewarding (limited) but highly risky, if your analysis goes wrong.
Options can be sold and sit relaxedly for small gains in the long run, this way one don't need to look for the markets all the time. But this needs huge margins
Observe carefully before making your hands dirty.
Robotguy Says:
June 3rd, 2014
Posted at: 1:16 pm
Hi TradeWarrior / KK / Rohit , This is just my personal opinion....Selling options can be best used when you are holding stocks in cash for long term and dont want to sell those...but to sell options just like that...it is only done mostly by big shots who has the ability and money power to control the market....if they sell some options they make sure that the underlying meets their target...In my opinion for small traders it is better to buy options as it has 2 advantage - 1 it requires very less money + loss is limited whereas when we sell huge margin is blocked + risk unlimited...so instead of selling 1 option we can buy 5 options with same money as huge margin is not blocked...
TradeWarrior Says:
June 3rd, 2014
Posted at: 1:21 pm
Hi Rohit, Nifty options is completely different from other share options as it will not largely depreciate with time and expiry the face value remains good through out and will not expire with zero price.
(Am even able to short nifty but not other share options).
Are you able to short any share CE call ?? try shorting CENTURYTEX 26-Jun-2014 CE 570 @ 7.50 and let me know what happens (Do not worry its CMP is 6.6) if order placed u can cancel it.
Hi K K, Thanks for inputs let me activate and do very small trade to understand it better.
TradeWarrior Says:
June 3rd, 2014
Posted at: 1:25 pm
Hi Robotguy, thanks for details.
I agree with all that there will big margin blocked and risk is high.
TradeWarrior Says:
June 3rd, 2014
Posted at: 1:26 pm
Hi Rohit, Sorry read it wrong ignore my previous comments !!
Robotguy Says:
June 3rd, 2014
Posted at: 1:26 pm
Hi TradeWarrior, Its margin is 107000+ appx for 1 lot
K K Says:
June 3rd, 2014
Posted at: 1:27 pm
Hi Robotguy,
Yes, You are correct.
It's highly risky and less rewarding.
ankush Says:
June 3rd, 2014
Posted at: 1:29 pm
Hi CB can I buy aban at 736
K K Says:
June 3rd, 2014
Posted at: 1:30 pm
Hi TradeWarrior,
Just watch. You can short AuroBindo Pharma 560 PUT option.
Okay, Identify few scripts which you can short and do the paper trading for some time, On gaining confidence, you can get it activated. This way, you can minimize the risk.
One more thing. You need to target the out of money option strike prices for this .
Rohit Says:
June 3rd, 2014
Posted at: 1:31 pm
Hi TradeWarrior, yes I am able to short CENTURYTEX
deepa Says:
June 3rd, 2014
Posted at: 1:31 pm
Hi Robotguy, I have short PFC 1 lot future at 310. Please advise whether to hold or exit
Yash Says:
June 3rd, 2014
Posted at: 1:32 pm
Hi TradeWarrior, suggest me some short term investment shares (with target for 1 month)
Robotguy Says:
June 3rd, 2014
Posted at: 1:34 pm
Hi TradeWarrior, Best use of selling options..for eg. suppose you are holding huge qty of XYZ stock at 1500 for long term but u dont want to take risk if it comes down...then we can sell some 15% OTM call and relax...as even if the trade goes against us our Cash buying will be generating profit...(We can decide its future movement in % terms based on its annual / daily volatility so according to that we can select which OTM strike should we short)
ramaswamy Says:
June 3rd, 2014
Posted at: 1:34 pm
sir can i buy 7100 put sir
JS Says:
June 3rd, 2014
Posted at: 1:35 pm
Hi TradeWarrior, as per my understanding, when you have full confidence about spot price of particular scrip will not cross its level then strike price at that time your option will give you profit which is equal to your premium amount.
For ex: reliance is trading @ 1100. When you are sure that it will not go beyond 1200. you have to sell 1200 ce @ its premium price say 10 rs. in this case you will receive 10 rs per share as a profit. but in-case price goes 1250, you need to pay extra 50 rs per share at the time of expiry.
muzaffar Says:
June 3rd, 2014
Posted at: 1:36 pm
bought jetairways @ 245 and moil @ 318 any view on these stocks