iCharts Discussions

[amitagg]

[amitagg]

sold NF at 6339 stop 6351 target 6323 or lower

[amitagg]

TSL to 6345 now

[amitagg]

based on SSPS variant....one buy triggered at 6168...next pending at 6160, 6153, 6145.....overall stop 6110....

short in Dr Reddy at 2645 future levels...based on dynamite munda yesterday's chart....and yesterday's heavy volume indecisive bar.....support at 2630.....have to hold and carry forward for few days since an 'iffy' stock....

[amitagg]

booked 6186 first lot bt at 6168 [19 points].....dont trust any uptrend in downtrends [have seen this many many times]....lower buy orders open.....shall sell at 6210 region if it goes up

[amitagg]

[amitagg]

[amitagg]

3 lots gone at 6150 average out of 4 trades today [ 1 squared]....also sold 6150 call against the NF buy for @50...stop 6110

[amitagg]

if 6140 holds for some time as a very very heavy support region....

- if NF would be stagnant but sold call would give profit....
- if NF rises then time decay shall kill option premium for sold call so profit in NF [though lower than naked NF buy]
- if nf falls to 6110 then sold call would hedge the NF loss.......

volatile moves at 6110 and 6200 would be difficult to manage.....exit has to be proper for overall trade management

.....better to balance NF with options in uncertain markets [and bear hedging cost / lesser profits]

[vinay28]

[amitagg]

It is Rs 50 for a 6150 call (sold)...by buying NF and selling call at same strike price...I need not bother about "one" time wrong directional move...

Had I bought 6150 call...I could have lost Rs 50 in case of down move in straigt line (considering very bearish mood)

If i had bought put....I would be again risking Rs 50 more over 2-3 days...

Now the profit matrix is O loss in case of
- single move down to 6110 and any amount lower (shall exit future) (and I can buy 6200 call to hedge open short 6150 call for minor amount when market at 6100)
- profit of Rs 30 (40-10) in case of above 6200 expiry...
- can book NF around Rs 40 profit if goes up to 6185-6190 (current) and hold call or after event (watching) can sell further OTM call at 6250 if market around 6200...
- sideways move shall be again profitable between 6130-6200.....

I can trade future levels more precisely with options (hedging) ..without judging the "direction of move" ...since even buying options (either as puts or calls would be costlier and involve predicting direction....not I can work with a "range"...just speaking like a beginner...

[vinay28]

in general, writing options always has a much higher success ratio.

[amitagg]

5950-5973 can be the next support in few weeks for following reasons:

i) bullish gartley being completed with point d at 5973-6016 region [attached some weeks back]
ii) triple top target 6350-6150-5950
iii) 61.8 % from 5700-6415 is 5973
iv) breakout area to 6142 in gap formation
v) AB=CD target : (C) 6360 minus [(A)6415-6030(B)]=5975 [note that C also took 3 wave formation with c at a itself at 6360...]

buying to resume at any time around / below 6000.....for targets 6500+

[amitagg]

[amitagg]

inability to cross 6166 spot and move down below 6150 would be first shorting opportunity...if it comes by....resistances at 6174/6187....buy only above 6190...