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A FUSION TRADING STRATEGY |
rk_a2003
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Post: #526  Posted: Sat Sep 29, 2012 11:49 am Post subject: |
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| It's up to you to decide Sonila!. I presented the pattern and also made an attempt to present the objective situation. Conclusions can be drawn by each individual as per their perception and trade can be taken up as per their risk appetite.
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sonila
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| Post: #527 Posted: Sat Sep 29, 2012 11:53 am Post subject: |
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| rk_a2003 wrote: | | It's up to you to decide Sonila!. I presented the pattern and also made an attempt to present the objective situation. Conclusions can be drawn by each individual as per their perception and trade can be taken up as per their risk appetite. |
I want ur opinion.
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rk_a2003
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| Post: #528 Posted: Sat Sep 29, 2012 12:14 pm Post subject: |
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| sonila wrote: | | rk_a2003 wrote: | | It's up to you to decide Sonila!. I presented the pattern and also made an attempt to present the objective situation. Conclusions can be drawn by each individual as per their perception and trade can be taken up as per their risk appetite. |
I want ur opinion. |
 Can short for a 1st target at UTL and then for a second and final target at middle B.B.Expect high volatality and possible brisk reversals upside.Before going short calculate RR,it's not so favorable.
One more point any ww sucess rate increases if SL maintained on closing basis.Price running up and closing very high can not be ruled out in this situation.It has got all the risks of taking up a short trade in bullish market.
After reading this you may think.... why should I trade this?. 
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sonila
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| Post: #529 Posted: Sat Sep 29, 2012 12:23 pm Post subject: |
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| Thnx, Ramakrishna.
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vishyvaranasi
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Joined: 11 Jul 2011
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| Post: #530 Posted: Sat Sep 29, 2012 2:10 pm Post subject: Hi RK |
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Hi Rk,
If for say one is confident about the setup bu the market seems to be against the tide itll be fone if one can go for puts of lower rate. Wats ur say
Vishy
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sonila
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| Post: #531 Posted: Sat Sep 29, 2012 2:17 pm Post subject: Re: Hi RK |
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| vishyvaranasi wrote: | Hi Rk,
If for say one is confident about the setup bu the market seems to be against the tide itll be fone if one can go for puts of lower rate. Wats ur say
Vishy |
For -ww cases, i think u r asking ?
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vishyvaranasi
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| Post: #532 Posted: Sat Sep 29, 2012 2:22 pm Post subject: Re: Hi RK |
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Ya sonila.
I personally feel if we feel confident abt the setup then i think we can go for Puts bcoz the market SEEMS to be bullish so that our loss will be lesser atleast if the SL hits in Cash
| sonila wrote: | | vishyvaranasi wrote: | Hi Rk,
If for say one is confident about the setup bu the market seems to be against the tide itll be fone if one can go for puts of lower rate. Wats ur say
Vishy |
For -ww cases, i think u r asking ? |
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sonila
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| Post: #533 Posted: Sat Sep 29, 2012 2:38 pm Post subject: |
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| Vishy, in my view, its a very good idea....it is giving extra safety also.
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sonila
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| Post: #534 Posted: Sat Sep 29, 2012 2:41 pm Post subject: |
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| Vishy, can we apply the reverse, i mean, in bullish ww cases, buying out of the money,low cost calls.....what u say....
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rk_a2003
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| Post: #535 Posted: Sat Sep 29, 2012 2:44 pm Post subject: Re: Hi RK |
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| vishyvaranasi wrote: | Hi Rk,
If for say one is confident about the setup bu the market seems to be against the tide itll be fone if one can go for puts of lower rate. Wats ur say
Vishy |
Yes, It may appear to be a better option. But practically Puts premium will not rise so easily in bullish markets and calls premium will not erode so easily. Even if price touches the down ward targets for a while, it needs some time for the puts to rise.
On Friday. I sold 240 call of DLF @12.10 when it was trading around 240.After that It came down to 233 and I covered my call @9.00 almost at closing time. I thought twice before covering it. The chance of downward move to continue even for Monday is bright. So, I can carry my short position for Monday .In normal circumstances I would not have covered my position for the reason that the two day weekend add to the erosion of the premium which adds to my profit.
But in the given circumstances of the markets. If DLF opened a little high on Monday the premium of 240 call would have jumped up significantly that too very fast. Of course I have an option of going long in futures at 240 and hedge my short call. Still I preferred to have a clean slate for shorts and covered it.
Look at the DLF multiyear monthly chart. It’s consolidated for a long time at these price levels. Taking any short call at this stage on it should be really really careful and should be executed briskly. Puts may not serve the purpose, I guess.
Still, if you feel DLF can spend some time at lower levels( We can't rule out that chance entirely) then you may go for it. We may take a chance by taking out of money puts for few bucks.
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vishyvaranasi
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| Post: #536 Posted: Sat Sep 29, 2012 2:49 pm Post subject: Hi Rk |
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Hi Rk,
Posting the Daily chart of IDFC. Seems to hav fulfilled the Fusion points. Then y did not u take this .Is it that u missed or purposefully left it.This is just a question to hav a clear understanding . Can u explain in detail.
Vishy
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vishyvaranasi
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| Post: #537 Posted: Sat Sep 29, 2012 2:54 pm Post subject: Hi Sonila |
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Hi Sonila,
That mite b one of the cases, but when we are looking into a strategy which we feel confident upon, we definitely tend to enter the trade irrespective of the Market sentiments ( Thats the weakness many hav,It cannot be considered as greed , it is just a fear that we mite be missing an opportunity bcoz after all we tend to look for opportunties in this market). So , say our risk and SL are far away then i feel we can enter into the Options trading as per the strategy and wait until the actual SL hits in Cash.
Vishy
| sonila wrote: | | Vishy, can we apply the reverse, i mean, in bullish ww cases, buying out of the money,low cost calls.....what u say.... |
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vishyvaranasi
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| Post: #538 Posted: Sat Sep 29, 2012 3:07 pm Post subject: Hi Sonila |
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Hi Sonila,
Seems to hav changed colours. Congrats for the brown
Vishy
| sonila wrote: | | Vishy, can we apply the reverse, i mean, in bullish ww cases, buying out of the money,low cost calls.....what u say.... |
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sonshu101
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rk_a2003
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| Post: #540 Posted: Sat Sep 29, 2012 3:33 pm Post subject: Re: Hi Rk |
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| vishyvaranasi wrote: | Hi Rk,
Posting the Daily chart of IDFC. Seems to hav fulfilled the Fusion points. Then y did not u take this .Is it that u missed or purposefully left it.This is just a question to hav a clear understanding . Can u explain in detail.
Vishy |
I missed it. It appears to be fine.Except that the wave 4-5 rise is too steep and the length is (No of days) too short.We could have tarded it atleast for a target of 150 incase we found it two days earlier.
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