Market Calls

Austral Coke – Scary Buy Signal

Rajandran R — Tue, 09 Mar 2010 14:36:18 PST

Stock CMP : Rs 9.2

NMA Charts of Austral coke shows only 5 trading signal for the past 10 month. And the more recently on March 7th Austral coke shows a buy signal with heavy volumes. Stock had rised more than 40% from it lows in last 3 trading sessions alone. Any risk takers without tracking news,fundamentals,without bothering about loss or gain until next sell signal ?

IEOD Database for Amibroker – 1 Year Data

Rajandran R — Mon, 08 Mar 2010 05:35:44 PST

Download NSE IEOD database for Amibroker for the starting 01 March 2009 to 06 March 2010

File Size : 180 MB

Steps to Setup the IEOD database
1) Download the database from the above mentioned link
2)Extract the Zip file and Save it to the folder c:\Program Files\Amibroker\
3)Open Amibroker
4)Select Open Database from the Menu Bar
5)Select the InvestBullsDB Folder from the folder c:\Program Files\Amibroker\

Bingo you are done!

One can further update the day to day IEOD Database from
http://investbulls.com/download.php?list.40

requires registration with investbulls prior to download the IEOD files

This video could be helpful to you to further update your database in Amibroker

Earning Profits with the Use of Non Directional Trading Strategies -2

narenmt — Sun, 07 Mar 2010 00:41:32 PST

Dear readers,
Here is the Video Recap of Earning Profits with the Use of Non Directional Trading Strategies -1

Let me clarify few things about options to help your trade options better.

Try to gain fundamentals knowledge of options, trading strategies, etc and after ensuring that you have complete knowledge start trading options. Never trade without learning completely about options.
Almost all option strategies involve some degree of risk, decide your risk level and then trade options. Please avoid taking naked option position such as sell call or sell put as they are too risky and involve unlimited risk.
Trading options as a directional bet can be a very complicated money making technique. Buy call or put if you are very sure about the direction of market as market always has surprises. For instance, NIFTY 5300 call was trading @Rs.114.8 in January when NIFTY was 5000 level, now the same call closed at @Rs.16 last week when NIFTY is at same 5000 level. Unlike stocks and futures, you do not need to just get the direction right but you also need to get the volatility and timing right. You may have made a directional forecast in January that NIFTY may touch 5000 in March, but wrong timing, time decay and volatility may turn your trade into loss.
There is no perfect trading strategy which will work in all time. Every market move requires one to use different option strategy. Here is a checklist on few strategies to be employed based on direction/volatility etc.

Outlook	Option strategy
Bullish	Buy call Sell put Bull spread Diagonal Spread
Bearish	Buy put Sell call Bear Spread Diagonal Spread
Neutral	Sell Straddle Sell strangle Long Butterfly Calendar Spread Covered call
Volatile	Buy Straddle Buy Strangle Short Butterfly

Option trading is not for those who wish to create wealth instantly. One needs to have good discipline, time management and proper preparation. It is not like stock trading where one can buy a stock and make profit IF STOCK GOES UP. Option trading involves more of proper risk management and making profit.
Although there is the chance to make a lot of money, you can lose everything in a heartbeat without proper preparation. This means that you need to create a perfect groundwork before trading options and be ready to review and modify your strategies and plans to work with whatever changes the market throws at you.
Trading options is different from trading in stocks future or investing in stocks. It is more like speculating and taking on a business risk with the hope of making a profit from the market fluctuations. If you are ready to take up minimal/pre-planned risk and understand that your trade may go wrong then options trading may be exactly the kind of wealth creation channel that you are looking for. Options trading can be a very rewarding investment if you are careful, CAUTIOUS and aware of everything going on around you. Please do make sure that you research the risks involved and always attempt to learn as much as you can to reduce the possibility of losing money.
Here is an example of NIFTY options trade as requested by Sandew using modified long butterfly:

Type	Strike	Expiration	Price
Short Put	5100	25-Mar-10	94.5
Short Call	5100	25-Mar-10	78.15
Long Put	4900	25-Mar-10	33
Long Call	5200	25-Mar-10	37.1

Max profit: 102.55, Max loss: 97.45, and Return if unchanged: 91.25.

Strategy Graph

(The option trade given in this post is provided for general education and information purposes and therefore should not be considered as recommendation by the author).

Narendar Rathod, Options strategist, www.AssuredGain.com

Idea : Long Term Breakout Stock

Rajandran R — Fri, 05 Mar 2010 13:43:44 PST

I have just two charts with me take a long term buy call in Idea. Lets have a look with the first one. First Chart is as usual my all time favorite long term Breakout GANN Chart of IDEA with long term supports available at Rs59-60 region. and ofcouse the next long term supports are available currently at Rs 108 which decreases with respect to time.

Twiggs Money Flow is one of my another favorite indicator for tracking long term breakout. Most of the time there is a long time breakout if the long term negative got broken. I had used 13 Week Twigg’s Money Flow indicator. As you seen from the weekly chart of IDEA you can see there is a divergence breakout in IDEA. Check how Twigg’s Provides a logical long term breakout here in this following post Twigg’s Breaks Long Term Resistance

Atlast, Here is the chart most of the regular reader of this blog would love. Yes its nma weekly buy signal generated this week for IDEA after closing above Rs61 Charts shown above

Change in Nifty OI Scenario

Rajandran R — Fri, 05 Mar 2010 02:07:37 PST

Change in Open Interest Scenario today. 5100 Calls having higher open interest builtup which inturn indicates heavy call writing in 5100. It is suggested to long nifty only if sustains above 5100

Earning Profits with the Use of Non Directional Trading Strategies -1

narenmt — Wed, 03 Mar 2010 09:04:25 PST

Dear readers,

I would like to thank all readers of this blog for your mails and calls. I am very grateful to Rajandran of Marketcalls.in for his support. In today’s blog, I will divide trading into two basic categories: directional and non-directional and discuss about using non-directional to make profitable options trading.

If you have been trading for a long time, you may know it’s very difficult to predict market. I remember a wonderful quote by Louis Navellier, “Just when you think you are smart, the market will show you just how really dumb you are.” I would like to highlight another quote by William Bernstein, “There are two kinds of investors, be they large or small: those who don’t know where the market is headed, and those who don’t know that they don’t know. Then again, there is a third type of investor – the investment professional, who indeed knows that he or she doesn’t know, but whose livelihood depends upon appearing to know.”

Directional trading: Example: A traders after making detailed technical analysis(Gann, EWT, candle-stick, etc) and buys NIFTY future expecting the NIFTY to bounce above the cost price, reach target and finally book profit IF NIFTY has bounced as predicted. One more trader who also had done detailed technical analysis (Gann, EWT, candle-stick, etc) and predicted that NIFTY would fall, shorts NIFTY future expecting NIFTY to fall below short price, reach target and finally book profit IF nifty had fallen as predicted. These are speculation trades. One can lose huge money in this kind of speculative activity of predicting and trading if he is not managing his risk properly. Market can go expire anywhere above 5200, between 5200 and 5000, or below 5000 or 4600. Predicting where the NIFTY will expire is a difficult task for many of us. On the other hand predicting where the NIFTY will not go is a much easier task that predicting the direction. Non Directional Trading is about making money predicting where the market will not go. Ask yourself, which is easier, to predict where the market will go or to predict where the market won’t go?

Following is the list of non-directional option strategies which works without predicting market direction or neutral option strategies

Bear Put Ladder
Bull Call Ladder
Calendar Spread
Guts
Long Box
Long Call Butterfly
Long Call Condor
Long Call Synthetic Straddle
Long Iron Butterfly
Long Iron Condor
Long Put Butterfly
Long Put Condor
Long Put Synthetic Straddle
Short Call Butterfly
Short Call Condor
Short Guts
Short Iron Butterfly
Short Iron Condor
Short Put Butterfly
Short Put Condor
Short Straddle
Short Strangle
Straddle
Strangle

To be continued….

Narendar Rathod, Options strategist, www.AssuredGain.com

Trade Wisely & Relax

ManshiRT – Setup Free Realtime Datafeed for Amibroker

Rajandran R — Wed, 03 Mar 2010 06:06:31 PST

Here is an amazing realtime datafeed software for Amibroker available at free of cost. This light weight utility Extracts realtime datafeed from Yahoo,ODIN,TT Advance,Keatpro. Also the software has an autobackfill funtionality for NSE,BSE,NASDAQ which sounds little amazing.

Download ManshiRT – Alternative Link

Supporting Softwares Required
1) Dot Net 3.5 Framework SP1
2) VS 2008 redistributable

Its is not recommended to use the Microsoft download mirror to download supporting softwares if you are not using the official version of windows

To know how to install watch out the video for Installation instructions

For more support visit ManshiRT yahoo group

Interactive Ajaxorized Pivot Table

Rajandran R — Tue, 02 Mar 2010 18:50:03 PST

Introducing another trading pet of marketcalls Ajaxorized Pivot table where an user can search the pivot,support and resistance for a particular stock(more than 1200 NSE stocks are included) or Index can retrieve data from the server asynchronously in the background without interfering with the display and behavior of the existing page. Have nice try with the Pivot application. Use the search textbox to search the pivot data for a particular stock. Pivot Data will be updated every day between 6.00P.M-8.P.M

Disclaimer : The Application is only for those whom based on pivot points . And the aim is to make the searchability for the any kind stock pivots more easier instead of calculating the values manually

Nifty Shorter term and long term GANN Overview

Rajandran R — Tue, 02 Mar 2010 08:46:42 PST

Shorter Term GANN Charts

Shorter term GANN Shows resistance near 5040-5050 region. And when looking into the long term GANN Charts I’ve had drawn the charts with two possibilities. The first chart is by drawing from the lows of march 2009 to the major supports which shows that the long term supports are near 4800. And the second long term charts are drawn between march 2009 lows to dec 2009 high’s which indicates long term resistance near 5050(check on the below charts- just kissing the resistance line increases w.r.t time) and the long term GANN Supports for the second possibilites lies near 4260 zone. But both the charts indicate a target zone of 4260-4300 if nifty breaks 4800 on EOD basis.

Long Term GANN1

Long Term GANN1(1st Possibilites) Chart shows possibilites of new high’s above 5050 on EOD basis and Supports at 4800

Long Term GANN2

Long Term GANN(2nd Possibilites) Chart showing Support near 4260 and resistance near 5050

Zero Cost Collar Options strategy – Insurance for your stocks

narenmt — Tue, 02 Mar 2010 07:25:59 PST

Zero cost collar or zero cost option is an option technique to safeguard the gains obtained on holding stocks. This is very simple option strategy which can be used safely to protect the profit accrued on holding stocks. This can be used by investors who do not wish to trade intraday or positional trades and invest in blue-chip stocks for long-term gain. Most of us buy insurance for our life but fail to buy insurance for stocks which we hold for long-term investment. In case if you own a stock that has increased considerably in value since you bought it? You may book profit or wait for more upside but you don’t wish to sell that stock as you feel that is more upside potential if one holds for longer duration. At the same, you want to insure your stocks from any crash, collar is the best strategy to insure your stocks without any cost and insure you in case if the stock price falls drastically. Using collars you can preserve or “lock in” profit on your stock while allowing you to benefit from additional upside gains. In effect, you can place a “collar” around your stock which limits downside risk while taking advantage of upside movement with little or no cost.

Definition: A collar is an options trading strategy that is constructed by holding shares of the underlying stock while simultaneously buying protective puts and selling call options against that holding. The puts and the calls are both out-of-the-money options having the same expiration month and must be equal in number of contracts.

Let’s discuss this strategy with example: There are two parts to creating a costless collar. The first step is to protect or lock in your profit. This is done by purchasing a put contract on the stock you own. A put contract gives you the right to sell the underlying shares of stock. For example, if you own 100 shares of Infosys currently trading at Rs.2640 per share that cost you Rs.1500 per share, you have an (unrealized) gain of Rs. 1, 14,000. He can sell INFOSYSTCH 2700 CE @32.50 and buy INFOSYSTCH 2550 PE @23.35.

There are three possible scenarios when the options expire:

If the Infosys stock price is above the Rs.2709.15 (2700 call written) one can sell the sell them and come out position with decent gain from stock(Rs.1,20, 915).

If the Infosys stock price drops anywhere below the 2550 (strike price on the put bought) one can exercise the put and gain profit from the put bought. His profit is unlimited based on extent of fall (if falls to Rs.2400, he can make Rs.15, 823) from the put and hold the stock.

If the Infosys stock price is between the two strike prices(2700 and 2550) at the expiration date, both options expire unexercised, and the investor is left with the share whose value is that stock price, plus the cash gained from selling the call option, minus the price paid to buy the put option.(Rs.9015)

Infosys price on expiry	Action	Gain
Above 2709.15	Sell stocks and make gain.	Rs.1, 20, 915(@2709.15)
Below 2550	Exercise put option	Rs.15, 823 @2400
Unchanged(2550-2700)	Call expires worthless, loss in put	Rs.9015(selling 2700 call)

Happy trading options

Narendar Rathod, Options strategist, www.AssuredGain.com

Market Calls

Austral Coke – Scary Buy Signal

Related Readings and Observations

IEOD Database for Amibroker – 1 Year Data

Related Readings and Observations

Earning Profits with the Use of Non Directional Trading Strategies -2

Related Readings and Observations

Idea : Long Term Breakout Stock

Related Readings and Observations

Change in Nifty OI Scenario

Related Readings and Observations

Earning Profits with the Use of Non Directional Trading Strategies -1

Related Readings and Observations

ManshiRT – Setup Free Realtime Datafeed for Amibroker

Related Readings and Observations

Interactive Ajaxorized Pivot Table

Related Readings and Observations

Nifty Shorter term and long term GANN Overview

Related Readings and Observations

Zero Cost Collar Options strategy – Insurance for your stocks

Related Readings and Observations