For 04 JAN 2013 (Option trading strategy)

Intraday Option Trading Strategy

Strategy performance report :

Initial Investment Required: 100000
P/L on 03 Jan 2012
Rank	Buy/Long	Expiry Date	Option Type	Strike Price	Entry price	Exit price	Lot	P/L	Inv
1	WELCORP	31-Jan-13	CE	Not entered
1	CANBK	31-Jan-13	PE	1000	17.75	16.35	1000	-1400	17750
2	DRREDDY	31-Jan-13	PE	1850	27.05	23.05	125	-500	3381.25
3	ULTRACEMCO	31-Jan-13	PE	2050	44.9	58.2	125	1662.5	5612.5
							Total	-237.5	26743.75
								ROI	-0.89%
								ROII	-0.24%
Absolute Strategy Return on initial investment from 13 Nov 2012(%)									2.19%
Recommended Stock's options for intraday Trading Strategy
Rank	Buy/Long	Expiry Date	Option Type	Strike Price	Entry price	Exit price	Lot	P/L	Inv
1	ITC	31-Jan-13	CE	As per rule
2	LICHSGFIN	31-Jan-13	CE	As per rule
3	KOTAKBANK	31-Jan-13	CE	As per rule
1	HINDUNILVR	31-Jan-13	PE	As per rule

Please read strategy rules carefully (mentioned below) first before doing anything and if you have any query or doubt then let me know through relevant comment.To know more about rules leave relevant comment.

Entry time: After market opening time for traders(9:15 AM, IST).
Recommended time for entry: 9:15 AM-9:30 AM, IST.

Lot Size: As per your risk taking ability.

Expiry date: Call/Put option with nearest expiry date.

Strike Price:
To buy call option:  Strike price should be below the opening price of respective stock.

e.g.
Suppose Stock XYZ previous day's closing price is 1000.
Strike prices have difference of 20 at each level.
if XYZ gives opening between 980-1000, then buy Call option with strike price 980.
if XYZ gives opening between 960-980, then buy Call option with strike price 960.

Please do not buy call option, if stock XYZ gives opening above previous day's closing price.

To buy put option: Strike price should be above the opening price of respective stock.

e.g.
Suppose Stock XYZ previous day's closing price is 1000.
Strike prices have difference of 20 at each level.
if XYZ gives opening between 1000-1020, then buy put option with strike price 1020.
if XYZ gives opening between 1020-1040, then buy put option with strike price 1040.

Please do not buy put option, if stock XYZ gives opening below previous day's closing price.

Exit:

Rule 1:If XYZ goes above 1040 in case if you have bought a put option with an strike price of 1020 or If XYZ goes above 1060 in case if you have bought a put option with an strike price of 1040.

Rule 2: Before market closing time for traders (3:30 PM, IST).
Recommended time for exit: 3:15 PM-3:25 PM, IST.