GIVEN FROM 457 BOOKED PROFIT OF 9000
GIVEN FROM 713 BOOKED PROFIT OF 4000
BUY BRIGADE ABOVE 457 TG 463/469 SL 450
BUY RAYMOND ABOVE 713 TG 721/728 SL 705
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Markets got off to a buoyant start to the week, gaining
over a percent and a half continuing the prevailing recovery. After the flat
start, the benchmark gradually rose on healthy buying from banking and IT
majors, eventually ending around the daily high. Meanwhile, the broader indices
traded mixed, ending with modest gains. Bullish global signals coupled with
bargain-hunting among index majors are driving markets higher.
Markets will initially react to the inflation data in early trading on Tuesday.
Updates on prevailing geopolitical tensions and global market developments will
also remain in focus.Since Nifty has surpassed the critical hurdle at
16,800, it can extend the rebound to a 17,100+ zone. In case of any dip, 16700
would act as immediate support. Meanwhile, participants should maintain their
focus on sector/stock selection.
SUPPORT: 16709,16508,16206
RESISTANCE:17011,17112,17414
INFY FUT 1st TARGET ACHIEVED @ 1867 BUYING CALL GIVEN FROM 1852 BOOKED PROFIT OF 4500
WIPRO FUT 1st TARGET ACHIEVED @ 596 BUYING CALL GIVEN FROM 591 BOOKED PROFIT OF 4000
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BUY INFY 2 LOTS ABOVE 1852 TG 1867/1882 SL 1836
BUY TATACHEM 2 LOTS ABOVE 929 TG 934/939 SL 923
BUY TATA STEEL 2 LOTS ABOVE 1305 TG 1317/1327 SL 1294
BUY WIPRO 2 LOTS ABOVE 591 TG 596/601 SL 585
BUY VOLTAS 2 LOTS ABOVE 1181 TG 1191/1201 SL 1169
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Many new entrants in this exciting
world of Options trading do get attracted to traders who have made huge profits
by buying that right option at the right time or those who have been making
consistent profits by selling that right option at the right time.One of the
most widely debated issues in options trading has been what pays off more - Net
Buying of Options or Net Selling of Options. Well, almost two decades of
history of Indian options trading has taught us: 'It Depends!
Depends on what?
Three major conditions help us choose if a
Buy Option will be a better bet or a Sell Option. Before we see that,
for Selling Options one is required to be skilled enough to understand the
unlimited risk profile of it and know how to handle it just in case it goes
wrong.
First Condition: Time
We all know options keeps losing a part
of its premium due to passage of time. However, the time value loss on the
option premium is not constant. The nature of
time value loss from option premium is slow in the beginning of the expiry and
picks up speed as it comes closer to the expiry and is at a great speed in the
last few sessions of expiry.
Implied Volatility
Implied Volatility in plain English is
the expensiveness of the option. A figure easily available in many free tools
on the internet. It is the expected that volatility figure obtained from the
premium of the option.
Implied volatility also has its own
characteristic, it broadly moves in a range. Here, instead of sharing what to
do, let me share what not to do.But, before that, there is an index of Implied
volatility of Nifty options called India VIX. The value of this index is
publicly available. If VIX is observed close to a recent high, it is
advisable not to Buy options.One the other hand, if we have the same index is
close to recent lows, it is advisable not to Sell options. There are certain
theories that do guide Selling options when Implied Volatility is at higher
extreme and Buying when its otherwise. However, finding these extremes is a
separate topic of discussion itself.
TATA STEEL FUT BOTH TARGET ACHIEVED 1332/1343 BUYING CALL GIVEN FROM 1320
BOOKED PROFIT OF 14875
TATA CHEM FUT 1st TARGET ACHIEVED @ 918 BUYING CALL GIVEN FROM 913
BOOKED PROFIT OF 5000
VOLTAS FUT 1st TARGET ACHIEVED @ 1180 BUYING CALL GIVEN FROM 1170
BOOKED PROFIT OF 5000
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BUY TATA STEEL 2 LOTS ABOVE 1320 TG 1332/1343 SL 1307
BUY TATA CHEM 2 LOTS ABOVE 913 TG 918/923 SL 907
BUY VOLTAS 2 LOTS ABOVE 1170 TG 1180/1190 SL 1158