NIFTY options trading strategies for november 18th november 2011

Hi friends, 

                It is very tempting to be in every fall or rise on nifty options.But that is not the right thing.Once u start making some money in options this is the first mistake u make and probably the biggest which can be once reward but one bad trade can wipe out your entire capital.So its like a casino.

So we are entering into trades we are 100% sure of.No point in catching every rally or fall.

What to do in such situations as i had said we Buy puts 4600 puts if we get nifty break below 5000 and on closing basis must had paid off to many friends.How u identify we are getting nifty closing rite is by making sure even after 3 o clock nifty is staying down else what we see is a sharp move after 3 o clock like yesterday.

what to do in such situations now those who have already buyed puts ,just dont become to comfy about the puts you need to exit as early as possible.I personally feel we will get a bounce back and then we enter into new trade as told by me yesterday.

One more thing for call/put  writers perfect exit point for  writers is 10 rs once u have sold options best is to wait for it to die to level of rs 10 and exit becos after 10 rs there is no point in remaining as options will die slower.

Finally long term strategy if u want to be in markets all the time SELL January call strike 5800 its a safe bet

Our yesterday risky strategy of selling 5500 call and selling 4500 puts is still reaping success but i am not playing it but dont worry i guess we mite end December above 4500

Rest wait for bounce to write calls strike 5400 or to buy PUTS again.

Why i am advising wait is middle zone of any fall is dangerous and sharp spike leaves u with nothing but loss.

So that risky strategy works not matter Ur falling or rising.

Adios amigos.