Intraday calls for 15-06-12
Markets likely to open slightly higher. Resistance for nifty is at 5130 and support at 5000.
Buy Havells India at 540, target: 552. Stoploss: 533
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SM Says:
June 18th, 2012
Posted at: 12:37 am
Hi CB, GE buddy :)
SR Says:
June 18th, 2012
Posted at: 12:51 am
Hi CB, Good Evening :)
Hi SM, ITM options consist of Intrinsic value and premium ... If ITM moves ahead to become deep ITM, it looses all the premium and only retains intrinsic value but the value of the option will be higher as gain in intrinsic value would be more than the loss in premium. On the other hand, if ATM option moves ahead to become ITM, it will start gaining intrinsic value and start losing premium. Whereas, if OTM options move ahead to become ATM options, they keep gaining on premium.
As such max gains would be in OTM options. Check the case of last friday of 5000CE, 5100CE, 5200CE, 5300CE. Percentage-wise 5300CE gained the max and 5000CE gained the least.
But if trend changes, reverse happens, ITM looses the least and OTM looses the max.
Check the case of last Thursday of the same CE's
SM Says:
June 18th, 2012
Posted at: 1:16 am
Hi SR, Yes, just saw the options chain and compared the percentage change. True. But the question still remains, as a trader, somehow if the beginning of a particular trend we are able to forecast it. Then, as we do not know when the trend will reverse (till we get a signal), how do we speculate which OTM to enter? Because any OTM can remain OTM ( except the next strike maybe ) if the trend reverses before hitting that strike and make it ATM. After that comes the fact of making the OTM, ITM. So, is it not better to remain in ITM or ATM ? If the underlying is in a mid point (between two strikes) where we expect a trend to start, then there is no ATM. Then a million dollar question arises, do we go for the just ITM or just OTM? Considering this and also considering that Nifty Strikes are 100 points apart, its better to stick to ITM. Comment plz :)
Sohan Says:
June 18th, 2012
Posted at: 1:21 am
Hello CB,
If New Democracy and Pasok combine then Greece will remain with single currency.
This is somewhat positive news though the entire results need to be declared.
Secondly if these to parties change their stand we see good volatility everywhere.
Lets see how this goes.
It is good to enter Euro pairs in Forex at entry to gain some 100 pips.
Sohan
Sohan Says:
June 18th, 2012
Posted at: 1:24 am
Hello CB,
Also what would be safe trading stategy for next few days.
Please give a combination of Nifty CE and Nifty PE with lot sizes.
Sohan
SM Says:
June 18th, 2012
Posted at: 1:29 am
Hi SR, because even if our forecast of the trend goes wrong we stand to lose little
CB Says:
June 18th, 2012
Posted at: 1:33 am
Hi Sohan, Good evening.. yes.. does seem so. dont enter if opens gap up. technically a close above 5160 can take nifty higher to 5220
CB Says:
June 18th, 2012
Posted at: 1:33 am
Hi SR, Good evening..
Sohan Says:
June 18th, 2012
Posted at: 1:34 am
Hello CB,
Tata motors is holding that 200 SMA line and jumpeed from 61,8 Fib retracement.
Can we enter above 241 for target fof 248.
Sohan
CB Says:
June 18th, 2012
Posted at: 1:36 am
Hi Sohan, enter above resistance of 243
SR Says:
June 18th, 2012
Posted at: 1:55 am
Hi SM, Been paper trading for more than 2 months on the 100% plus profits and 0% loss strategy and started trading on it for last 2 weeks ... Currently completed 3 trades and booked 50% profit on the 4th.
As OTM options losses the most and also gains the most ... so you get max profits when buy OTM option when it is losing heavy and sell when it gaining the most.
On Thursday, when Nifty was crashing (negative sentiment), my entry level was 5080 ... bought 5300CE at 17.5. 5300CE made a low of 14.6
On Firday, when Nifty was at 5080 (positive sentiment), 5300CE was in 20-21 range. I had set 50% target at 35. 5300CE made a high of 34.75. Finally near close, I booked 50% at 34 and will book the rest tomorrow or day after near 5210-20.
No SL is used. :)
Sohan Says:
June 18th, 2012
Posted at: 2:01 am
Hi CB, Thanks CB
Hello SM/ SR/ CB,
Everyone awake. Sleeps all gone ???.
Sohan
Sohan Says:
June 18th, 2012
Posted at: 2:03 am
Hi SM, Whats your opinion for tomorrow.
Sohan
SR Says:
June 18th, 2012
Posted at: 2:10 am
Hello Sohan, Good Morning. Looks like CB gone to sleep. My reply to SM also gone in spam hehe.
Sohan Says:
June 18th, 2012
Posted at: 2:11 am
Hi SR, Whats your opinion for tomorrow.
Sohan
Sohan Says:
June 18th, 2012
Posted at: 2:15 am
Hey All,
Got to catch some sleep. Lets be in touch tomoroow.
Good night or Good moning
Sohan