Wednesday, July 27, 2011

Desi MO (McClellan's oscillator for NSE) at EOD 27th July 2011


Posted by r m at 7:09 PM

13 comments:

Chivukula Krishnamohan said...

My story https://docs.google.com/document/d/1xxSo6-I02aOlzeyayRHBBoSLp9sEygshGIXQdfFBHMo/edit?hl=en_US

July 27, 2011 at 7:44 PM
Anonymous said...

there is a serious fall in US mkt and eu - nasdaq is already 2% down....

July 27, 2011 at 8:00 PM
r m said...

Yes Janak, looks like your PE is going to yield rich dividends. :)

July 27, 2011 at 8:04 PM
Anonymous said...

rm - do u think so? well, then it shd. because this is my first ever "combo" trade.....now i feel i shd have bought that 60 paise 5400pe also in truckloads....just imagine if mkt goes below 5400....those who have bought 5400pes ( i saw buy orders like 80k, 60k etc.....so do people knew about it?)

July 27, 2011 at 8:19 PM
r m said...

The 5400PE huge orders were from the writers. They generally buy back their calls when prices fall below Rs 1 to ensure their safety in any financial mishap. :)

July 27, 2011 at 8:23 PM
Anonymous said...

ok. have u ever considered of being always in a trade while buying an ITM PE as well a CE? like 5500pe and 5600ce? one can always be in a trade like this? you don't loose much but either side - possibilities of gain are so huge....

July 27, 2011 at 8:29 PM
r m said...

buying ITM pairs would mean constant losses interspersed with once in a six month lottery. The options are priced in a way that only very smart people (like you) who can accurately guess the market movements can benefit from buying. Just remember all those .65 paise PE, someone must have bought them not so long back for 30-40 Rs. :)

July 27, 2011 at 8:49 PM
Anonymous said...

ok rm. i think option selling also would be a good idea - it needs to be traded just like future. today at one point i saw 11000pe 115 and in few minutes it melted to 60.....so if i had shorted it, it takes full value of a BNF lot? around 30k?

July 27, 2011 at 8:58 PM
r m said...

the margin for selling options is calculated by taking in account the difference between strike price/CMP and the remaining time till expiry. Mostly it is about the same as future margins, but margin requirement will increase if you are selling next or far month options.

July 27, 2011 at 9:07 PM
Anonymous said...

ab to hum ITM option hi short karenge.....futures ki tarah.....woh bhi BN me :-) wait for shai's BNF sell call and then jump with 10 lots of options....

July 27, 2011 at 9:11 PM
r m said...

:)

Jai ho!

July 27, 2011 at 9:15 PM
Anonymous said...

oops sorry! 10 lots selling wont be a good idea - buying wud be....selling me to 1 se hi achcha hei....because option prices melt faster when mkt going down...

July 27, 2011 at 9:15 PM
Anonymous said...

@Janak not true. put prices melt faster when market goes up than call prices when market goes down... because volatility goes up as market goes down.

July 28, 2011 at 1:20 AM

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