Guest Post By Raju Lillaney - 2

You can use the following factors to decide when to buy a Call/ Put Option.

You can use the following factors to decide when to buy a Call Option. FUNDAMENTAL:  P/E RATIO ABOVE 18 INDICATES THAT MARKET IS BECOMING OVERBOUGHT/BELOW 15 IT BECOMES OVERSOLD(RANGE 12 TO 26) TECHNICALS: RSI ABOVE 70 INDICATES OVERBOUGHT/BELOW 30 INDICATES OVERSOLD(EXTREME RANGE FROM 80/20) CLOSING PRICE ABOVE/BELOW 50DMA/200DMA/52WK-H/L(+/-10%)WILL INDICATE OVERBOUGHT/OVERSOLD IF 2 OR 3 FACTORS ARE IN THE ABOVE RANGE WE CAN DECIDE TO BUY/SELL ACCORDINGLY IT WILL BE BETTER IF WE START WITH PUT/CALL IN THE FIRST ATTEMPT BEFORE MOVING TO NEXT STEP OF SHORT/LONG ON NIFTY