Monday, 25 June 2012

Friday, 22 June 2012

FUTURE OPTION TIPS FOR 25 JUN 2012


BUY INDIA INFOLINE (DELIEVERY CASH) ABOVE 64 TG 70 ,74, 80
BUY R POWER FUTURE ABOVE 103 TG 105, 107, 109.
BUY SBIN 2100 PUT @15 TG 28 , 36,42

Wednesday, 20 June 2012

FUTURE OPTION TIPS FOR 21 JUN 2012

TATASTEEL call given in our NIFTY TIPS made a high of Rs.13.40 today.
BUY NIFTY 5100 CALL ABOVE 75 TG `100 ,125, 140 SL 60

Tuesday, 19 June 2012

Monday, 18 June 2012

FUTURE OPTION TIPS FOR 19 JUN 2012


BUYTATASTEEL 420 CALL @ 9 TG  14, 17, 20

BUY NIFTY FUTURE ABOVE 5080  TG 5110 ,5140,5170 SL 5050 .

SELL CAIRN INDIA FUTURE BELOW 325 TG 315 SL 332

Wednesday, 13 June 2012

Petronet Strangle Option Strategy

LEG1: BUY PETRONET 140 CALL @ 2.5
LEG2: BUY PETRONET 130 PUT @ 2.5
COST =5
LOT SIZE =2000       
 RISK PER LOT = 10000
RETURN = UNLIMITED

Read More For Pay off table.......

FUTURE VS OPTION


The main fundamental difference between  Future and option lies in the obligations they put on their buyers and sellers. An option gives the buyer the right, but not the obligation to buy or sell a certain asset at a specific price at any time during the life of the contract. A futures contract gives the buyer the obligation to purchase a specific asset, and the seller to sell and deliver that asset at a specific future date, unless the holder's position is closed prior to expiration.

Aside from commissions, an investor can enter into a futures contract with no upfront cost whereas buying an options position does require the payment of a     Premium. Compared to the absence of upfront costs of futures, the option premium can be seen as the fee paid for the privilege of not being obligated to buy the underlying in the event of an adverse shift in prices. The premium is the maximum that a purchaser of an option can lose.......

Thursday, 7 June 2012

DLF STRANGLE STRATEGY

Market is eyeing RBI for rate cuts which can have major impact on interest rate sensitive stocks. Dlf has seen consolidation in charts. Betting on huge moves either side in this counter can give a good payoff. We recommend long strangle strategy in DLF with a week’s outlook

DLF STRANGLE STRATEGY
LEG1: BUY DLF 180  PUT @3
LEG2: BUY DLF 210 CALL @3
TOTAL RISK  =(3+3)*1000=6000
OUT LOOK  5-7 Days.

FREE FUTURE OPTION TIPS

TO GET FREE FUTURE OPTION TIPS PLS  PROVIDE YOUR MOBILE NUMBER AND NAME IN "GET FREE TIPS FORM " 

Wednesday, 6 June 2012

FUTURE VS OPTION


Here we attempt to explain basic difference between Future and Option Contracts

Premium


While you pay a fee called the "premium" when buying stock options, there are no premiums to be paid in a futures contract. The initial amount of money (known as "Initial Margin") paid when you buy a futures contract is a fraction of the price paid for the underlying stock. While wrinting options you receive premium.


Obligations

Buyers of stock options are not obligated to exercise the rights to buy the underlying stock at all while buyers of futures contracts  or option writers are obligated  settle difference with cash market and pay mark to mark daily.
Liability

Buyers of futures contracts  and option writers are exposed to unlimited liability should prices move against them while buyers of stock options lose only the amount of money used to purchase those stock options.
Expiration

Buyers of futures contracts can carry forward  their position by selling current month contract and buying next month or vice versa. Options expire worthless if the options are out of the money.


Versatility

Options trading is a lot more versatile than futures trading as the unique combination of call options and put options along with the premium on each contract made it possible for options strategies that profit in all directions. Apart from arbitraging, futures trading is basically single directional (you make money only when price moves in one direction).

By now, it should be clear that futures and stock options trading are two totally different things with their own trading characteristics. Futures trading is an important risk management and speculative technique while options trading has evolved to become a stand-alone strategic investment. Futures should never be made a replacement for stock options trading and stock options trading cannot replace Futures as well. Both trading instruments serves different purposes and should find their place in every well diversified portfolio. 

Tuesday, 5 June 2012

BUYING CALL OPTION Vs WRITING PUT OPTION


Buying Option
When you buy call or put option you pay a premium or bet as to stock will move up(in case of call option) or move down (in case of put option). In case of buying option all that is at stake is premium you pay while return can be unlimited. Only constraint is time limit. Stock need to reach beyond strike price before expiry date.

Writing Option
When you write a  call option, you are player banker to someone betting that the price of a stock is going down or vice versa in case of put option.. You receive the "bet" in the form of the options premium earned form the person buying the put options from you. If the stock fails to exceed the strike price of the put options by expiration, the buyer has lost the bet and you keep the "bet" money as profit. In this case, your profit is limited to the "bet" money or options premium you received for selling the put options. While risk can be unlimited.

Friday, 1 June 2012

OPTION WRITING - 3 MISTAKES


As our markets are becoming mature, the number of option writers is increasing. It is believed than generally 80 % of option buyers loose money so what should we do..Option writing is other way round..
Option writing or in other words option selling means to sell option call and puts for a premium.
But while option selling can be a powerful way to diversify into a non-correlated, non-directional strategy, there is no free lunch. Writing options is one of those strategies that is easy to understand but infinitely more difficult to master.
Experience shows, however, that not doing the wrong things will have as much, if not more, an impact on your portfolio’s ultimate performance than doing all of the right things. Therefore, we can learn a lot from the errors of others. To that end, we’ll explore the three biggest mistakes that option sellers make and, more importantly, discuss simple ways to avoid making them.