Option Letter (for 16th September 2011)

 

While trading options we will always buy either calls or puts. We are going to trade only in liquid calls and puts so that we are able to exit at the earliest. Always trade in options of the current month. (All prices of Call or Puts are updated daily before sending to you. Any question do email us back or sms at 9811291155)

·                  New trader may only trade in Nifty options. Depending on your capital you may go on increasing you exposure.

·                 The target price will be 40%- 50% return on your investment, for you to exit out of option, if not otherwise mentioned. If by exercising the option at closing, the targets are met, then exercise the option.

·                  Below mentioned are  list of stock having active options

·                  Once the option is bought then do smaintain below mentioned stoploss as per the trend of underlying stock.

Buy below mentioned Options as per the instructions.

Take the position at

Share Name

Lot Size

Type (C/P)

Strike Price

Stop loss

Call

If IDBI spot is trading above 108 after 9.30 am

IDBI 2000 Call 110

If IDBI spot  is closing below 105  then quit the Call.


Trend of stocks with most active options

Stocks in downtrend for Put options

closing SL

Bharti Artl 410
Bhel 1780
HDIL 115
Hindalco 152
IFCI 38
ITC 205
Lic Hsg 215
ONGC 270
SBI 1990
Tata Motors 153
Tata Steel 510

Stocks in Uptrend for Call options

closing SL

Bank Nifty 9330
Cairn 275
Chambal Fert 105
DLF 195
HDFC Bank 460
Hind Uni Lvr 320
ICICI Bank 850
IDBI 105
IDEA 94
Infosys 2200
LT 1550
Nifty 4930
Rcom 76
Reliance 795

Rel Capital

400

Renuka 57
Suzlon 38
TCS 990

Once you buy the option, keep a profit target of 40% to 50% from your buying price.
We go on removing /adding the stocks to the above list as and when the trend changes so that you may create your positions accordingly. 
When the trend of the stock changes we update it in the table as per the type of position in the options and mark it in bold
For more support do email at neera@crnindia.com or send sms at 9811291155.Please mention your name at the end of sms


We are holding the below mentioned options with its  targets and stoplosses. Anything else sms will be sent.

Take the position at Share Name Lot Size Type (C/P) Strike Price Cost price Initial invest Closing price as on 15th September 2011 Current Investment % Profit and Loss Profit Target Remarks
Bought at 9.30 am on 9th September 2011 Cairn 1000 Call 300 5.15 5150 5 5000 -2.91% 7.20- 7.70

If Cairn spot  is closing below 270 then quit the Call.

SMS sent at 1.45 pm 
(Nifty Options )Buy Nifty Call 5000,T near 150.
Bought at 1.45 pm on 14th September 2011
Nifty 50 Call 5000 128.80 6440 170.40 8520 +32.29% sms will be sent

Support for it will be provided through sms

Bought at 9.35 am on 15th September 2011 TCS 250 Call 1000 47.85 11962.50 55.55 13888 +16.09% 67- 71.75

If TCS spot  is closing below 990  then quit the Call.


HDFC Bank Call was bought on 13th September 2011 & Nifty Call was bought on 14th September 2011. Targets were met on 15th September 2011 and booked Profit. Review of Calls mentioned below.

Take the position at Share Name Lot Size Type (C/P) Strike Price Cost Price Initial Invest. Quitting price as on 15th September 2011 Liquidated Investment % Profit and Loss High Price Remark
Bought at 9.30 am on 13th September 2011 HDFC Bank

625

Call 480 8.80 5500 13.25 8281.30 +50.56% 16

Target was met at 9.21 am on 15th September 2011

SMS sent at 1.45 pm 
(Nifty Options )Buy Nifty Call 5000,T near 150.
Bought at 1.45 pm on 14th September 2011
Nifty

50

Call 5000 128.80 6440 150 7500 +16.45% 171.15

sms sent--(Nifty Options)Target for Nifty calls met.Quit 50% calls and hold rest. Target was met at 3.06 pm on 15th September 2011

Review of the Calls Initial Investment Rs. 11940, Liquidated Investment Rs. 15781.25, Profit Rs. 3841.25


TCS Put was bought on 12th September 2011. We have quitted the Put on 15th September 2011 and booked loss. Review of Put mentioned below.

Take the position at Share Name Lot Size Type (C/P) Strike Price Cost Price Initial Invest. Quitting price as on 15th September 2011 Liquidated Investment % Profit and Loss High Price Remark
Bought at 9.30 am on 12th September 2011 TCS

250

Put 1000 39.05 9762.50 23.50 5875 -39.82% 30

 We have quitted the Put at 9.30 am on 15th September 2011

Review of the Put Initial Investment Rs. 9762.50, Liquidated Investment Rs. 5875, Loss Rs. 3887.50


A sideways market does not give good moves but the moment market starts moving the returns turn out to be quite good. In the long run we will find that playing the full momentum of a stocks or index gives better return on our investment though in sideways market we feel the pinch of it.

For any quick email reply please email me at neera@crnindia.com