Many write to me about option trading. Starting today, I want to go with some live example. I will try to go with my pre-defined strategies and I will also share potential profit loss at the end of the day or before opening.
US market is able to close above the low of March 16, 2011 hence we can risk saying a possible bottom up with the creation of opposite hammer (same failed in Nifty case). Tomorrow (November 22, 2011) I expect a gap down opening for Nifty. I believe Nifty will try to move up once bottom up at around 4730
Buy Nifty Call of 4600 Strike Price when Nifty will be around 4750. If opened at this price then wait for Nifty to move past this level and trade above this level for at least 15 min. Nifty will trade with negative bias with a good chance of technical bounce.
Follow my comments for actual buy price and stop loss.
Option TIP#1: Always be with second strategy handy, do not choose to average your option as a ready made strategy. Buying opposite option is far better than to average your loosing bet.
my golden rule