hi friends,
Dont panic.This is what happens in middle zone.That's y i had said long time back that when in middle zone enter with very less capital than ur normally trades.We get wide moves on one side followed by very reversal moves at the same time.The same thing happens in consolidation or sideways moves.
So what mistakes people make often is that they enter in sideways and get stuck and they make a trade to counter that trade and gets stuck.So this will be nice learning for you.
Again we need to keep dates in mind 20 December is deadline for buyers.We can't hold call buy for more than 20 December just to give sellers our time premium.
Now u must had got why did i just had recommended 5200 call write in middle zone.such whipsaw's can be tolerated by buyers.
so 5200 call writers continue to hold.
5100 ,5200 call buyers also continue to hold.But now don't wait for more confirmations 5150 hit and start buying 5400 puts or 5300 puts and writers can start selling 5500 CALL.
I was hoping that Nifty would come upto 5150 for me to buy puts. However, the 61.8% retracement @5105 or so has ended this rally.
ReplyDeleteNow I neither have puts or calls. Can I buy calls in dips ?
Sir,
ReplyDeleteI have 4800 DEC PE Buy.What should I do.
@nifty:- if you are reading my blog then understand that we are in middle zone and we are still not knowing where we are heading.So just wait for a good opportunity.Middle zone is not a buyers zone.
ReplyDelete@jugal:- Same logic whether we are in sideways or we are starting a new downtrend is not confirmed u can just hold and take 5100 break on upside as a stop loss,that only i can say.
ReplyDeleteThanks for excellent advice.
ReplyDelete