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anand1234 Yellow Belt
Joined: 17 Jul 2010 Posts: 830
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Post: #3661 Posted: Wed Jul 11, 2012 1:58 pm Post subject: |
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psalm wrote: | anand1234 wrote: | hi.....sam
if spot will not stay above 5350........then we may c 5300 -5280 level by today or tomorrow.......let c...........(TOMORROW ALSO INFY RESULT....SO VERY VERY CAUTIOUS).......my observation......do u agree ??
thx
anand |
The resistance I'm looking at is around 5370-5385 area as of now....below that anything could happen....I have no idea where we're heading.....but as long as we're above the 13-day EMA, on a closing basis, there will be buying....as of now, levels around 5300 looks key....a break below 5314 will push us to 5303 levels below that we could test 5280 levels...anyway, let's see if we hold 5303-5305 levels... |
hi.....sam
nifty spot has come according to my level.......may max 5280........one can think abt buy at that stage.(5280 - 5300)............tgt may b 5350.........let c
(MY OBSERVATION)
thx
anand |
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psalm Black Belt
Joined: 12 Nov 2011 Posts: 5368
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Post: #3662 Posted: Wed Jul 11, 2012 2:02 pm Post subject: |
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anand1234 wrote: | psalm wrote: | anand1234 wrote: | hi.....sam
if spot will not stay above 5350........then we may c 5300 -5280 level by today or tomorrow.......let c...........(TOMORROW ALSO INFY RESULT....SO VERY VERY CAUTIOUS).......my observation......do u agree ??
thx
anand |
The resistance I'm looking at is around 5370-5385 area as of now....below that anything could happen....I have no idea where we're heading.....but as long as we're above the 13-day EMA, on a closing basis, there will be buying....as of now, levels around 5300 looks key....a break below 5314 will push us to 5303 levels below that we could test 5280 levels...anyway, let's see if we hold 5303-5305 levels... |
hi.....sam
nifty spot has come according to my level.......may max 5280........one can think abt buy at that stage.(5280 - 5300)............tgt may b 5350.........let c
(MY OBSERVATION)
thx
anand |
Ok... |
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vinay28 Black Belt
Joined: 24 Dec 2010 Posts: 11748
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Post: #3663 Posted: Wed Jul 11, 2012 2:22 pm Post subject: |
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covered my shorts of yesterday and went long at 5302/04 |
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psalm Black Belt
Joined: 12 Nov 2011 Posts: 5368
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Post: #3664 Posted: Wed Jul 11, 2012 2:32 pm Post subject: |
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vinay28 wrote: | covered my shorts of yesterday and went long at 5302/04 |
Okie... |
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stevenmat White Belt
Joined: 27 Dec 2011 Posts: 478
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Post: #3665 Posted: Wed Jul 11, 2012 2:59 pm Post subject: |
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apka/sam/vinat
need your help..why are both OTM puts and calls for INFY trading in green? how is it mathematically/logically possible? |
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vinay28 Black Belt
Joined: 24 Dec 2010 Posts: 11748
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Post: #3666 Posted: Wed Jul 11, 2012 3:02 pm Post subject: |
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steve, I think it shows two opposite groups' tug of war.
I have bought both ce and pe, same as veerappan has also advised although they are not equally priced as they should be. but I feel bias is on +ve side |
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stevenmat White Belt
Joined: 27 Dec 2011 Posts: 478
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Post: #3667 Posted: Wed Jul 11, 2012 3:05 pm Post subject: |
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vinay28 wrote: | steve, I think it shows two opposite groups' tug of war.
I have bought both ce and pe, same as veerappan has also advised although they are not equally priced as they should be. but I feel bias is on +ve side |
What are your strikes? |
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vinay28 Black Belt
Joined: 24 Dec 2010 Posts: 11748
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Post: #3668 Posted: Wed Jul 11, 2012 3:08 pm Post subject: |
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2500ce/2300pe bought at 96 and 36
by the way I am hoping for 5388 nifty tmrw. |
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psalm Black Belt
Joined: 12 Nov 2011 Posts: 5368
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Post: #3669 Posted: Wed Jul 11, 2012 3:08 pm Post subject: |
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stevenmat wrote: | apka/sam/vinat
need your help..why are both OTM puts and calls for INFY trading in green? how is it mathematically/logically possible? |
Steven, one reason is the supply-demand phenomenon...the other thing is the Risk premium associated with it.....the writers will demand more premium as the event is pretty risky......there is huge risk associated with both the PUTs and CALLs right?...that's why both the prices will go up.... |
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stevenmat White Belt
Joined: 27 Dec 2011 Posts: 478
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Post: #3670 Posted: Wed Jul 11, 2012 3:18 pm Post subject: |
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vinay28 wrote: | 2500ce/2300pe bought at 96 and 36
by the way I am hoping for 5388 nifty tmrw. |
I bought c-2600 @ 55 and p-2350 @ 55...both are in profit now..lol...anyways keeping fingers crossed... |
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vinay28 Black Belt
Joined: 24 Dec 2010 Posts: 11748
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Post: #3671 Posted: Wed Jul 11, 2012 3:21 pm Post subject: |
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I feel you and me won't regret it |
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psalm Black Belt
Joined: 12 Nov 2011 Posts: 5368
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Post: #3672 Posted: Wed Jul 11, 2012 3:22 pm Post subject: |
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vinay28 wrote: | 2500ce/2300pe bought at 96 and 36
by the way I am hoping for 5388 nifty tmrw. |
and Infy above 2700???..... |
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stevenmat White Belt
Joined: 27 Dec 2011 Posts: 478
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Post: #3673 Posted: Wed Jul 11, 2012 3:27 pm Post subject: |
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psalm wrote: | stevenmat wrote: | apka/sam/vinat
need your help..why are both OTM puts and calls for INFY trading in green? how is it mathematically/logically possible? |
Steven, one reason is the supply-demand phenomenon...the other thing is the Risk premium associated with it.....the writers will demand more premium as the event is pretty risky......there is huge risk associated with both the PUTs and CALLs right?...that's why both the prices will go up.... |
isnt supply and demand driven by plain logic?
i thought option prices imbibe two types of prices - 1. actual value (S-X or X-S) and 2. Time value. Dint know that it had a premium for risk...are you sure? |
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psalm Black Belt
Joined: 12 Nov 2011 Posts: 5368
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Post: #3674 Posted: Wed Jul 11, 2012 3:39 pm Post subject: |
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stevenmat wrote: | psalm wrote: | stevenmat wrote: | apka/sam/vinat
need your help..why are both OTM puts and calls for INFY trading in green? how is it mathematically/logically possible? |
Steven, one reason is the supply-demand phenomenon...the other thing is the Risk premium associated with it.....the writers will demand more premium as the event is pretty risky......there is huge risk associated with both the PUTs and CALLs right?...that's why both the prices will go up.... |
isnt supply and demand driven by plain logic?
i thought option prices imbibe two types of prices - 1. actual value (S-X or X-S) and 2. Time value. Dint know that it had a premium for risk...are you sure? |
Time value is basically the risk premium that the option seller requires to provide the option buyer the right to buy/sell the stock up to the date the option expires. It is like an insurance premium of the option; the higher the risk, the higher the cost to buy the option. For more on Option pricing, please check the following link, Steven:
http://www.investopedia.com/articles/optioninvestor/07/options_beat_market.asp#axzz20J6HL64w |
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psalm Black Belt
Joined: 12 Nov 2011 Posts: 5368
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Post: #3675 Posted: Wed Jul 11, 2012 3:42 pm Post subject: |
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stevenmat wrote: | psalm wrote: | stevenmat wrote: | apka/sam/vinat
need your help..why are both OTM puts and calls for INFY trading in green? how is it mathematically/logically possible? |
Steven, one reason is the supply-demand phenomenon...the other thing is the Risk premium associated with it.....the writers will demand more premium as the event is pretty risky......there is huge risk associated with both the PUTs and CALLs right?...that's why both the prices will go up.... |
isnt supply and demand driven by plain logic?
i thought option prices imbibe two types of prices - 1. actual value (S-X or X-S) and 2. Time value. Dint know that it had a premium for risk...are you sure? |
Supply-demand thing may not be driven by plain logic all the time....that's the reason why bubbles get formed at times.... |
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