Day trading in Nifty call and put options

Day trading / BTST

Nifty : Date August 10 2010

Morning time : MACD gave the buy signal for put option at 9.10 am, at 5473 candle closing.

so the downward target is 5443 , at that point nifty 5500 put option traded at Rs 85.50 , so we should bought it at that price, but i waited for further upmove of nity toward the higher band of bollinger.

At 9.555 am when nifty touched 5480 which is near to the top end of bollinger band i bought the 5500 put option for Rs 83 which 2.5 rs cheaper than the MACD signal.

now my selling price is :

Rs 83 + commission Rs 2.8 = RS 85.8

Net Value of my option is Rs 85.8 , now my target price is 7 % of the net value.

So, target price is : Rs 91.80.

i hope the target will be reached in the last hour of trading. let us wait and see.

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if we bought it at MACD signal

if we bought it at MACD signal the target price will be

Rs 94.50 i hope this target will also be achieved.

regarding stop loss, through my exp., in this method for the last 2 months, even if the market travel in opposite direction, within the closing time, the price will come back to our buying price.

so , if the target is not achieved , we should wait till the end of the day.

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there will be downside after european market opening

there will be downside after european market opening, untill then nifty will be in the range

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target achieved

Rs 91.80. target achieved at 12.23 pm, when the market touched 5460 mark.

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MACD signal target also achieved 94.50

MACD signal target also achieved 94.50

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Profit booking chart for August 10th

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Profit booking chart for August 10th

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Profit booking chart for August 10th

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August 11 no trade initiated, as there is no signal

August 11 no trade initiated, as there is no signal, it will be risky, because market may go up or down, there is no sure signal. MACD suggest me to buy in the begin 9.05 am, so, the market should go to 5499. but as other asian markets are down, i am in doubt whether to buy a call option or not, so i don't buy any option as of now. but my intuition says market will end down today, but tommorrow or day after, market may again touch the 5500 mark.

chart

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August 11 : Bought 5400 Call option for Rs 95.90

August 11 : Bought 5400 Call option for Rs 95.90 when the market is at 5459 10.52 am

I bought it because a double bottom formed their. previously in the morning opening i was in a doubt, but now i think the upper band of BB will be touched by today evening or by tommorrow morning

Buying price : Rs 95.90 + Rs 2.8 = 98.7
Target price : 7 % of BP - Rs 105.60

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Market should again go back to altest 5460 levels

Market should again go back to altest 5460 levels,

the call option 5400 bought yesterday is still in open position, you can average it here at

Rs 55.50 + 2.8

or you can wait for 5450 levels, get out there.

If average here : Rs 58.3 + 95.90 = Rs 77.10

Which is most likely possible to achieve.

So, wait , don't panic

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Target Rs 82.50

Target Rs 82.50 ( 7 % profit of 77.10 ) , we can exit wait for the target, if by tommorrow it is not achievable, we can decide at that time

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Touched a peak of 80.15 but target not achieved yet

Touched a peak of 80.15 but target not achieved yet, we can wait till tommorrow or monday to book the profit.

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Aug 13th profit booked at 82.50

Aug 13th profit booked at 82.50 in the morning trade .

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