Wednesday, 26 December 2012

NIFTY STRANGLE STRATEGY

Buy Nifty Jan 5900 put @70
Buy Nifty Jan 6000 call @78
COST=148
RISK PER LOT=(70+78)*50=7400
RETURN=UNLIMITED
LOWER BREAK EVEN POINT=5922
HIGHER BREAK EVEN POINT=5970
OUTLOOK  FOR 7-9 DAYS

More about Option Call Put tips on google+

CALL PUT RATIO

The put-call ratio is a popular tool specifically designed to help individual investors gauge the overall sentiment of the market. The ratio is calculated by dividing the number of traded put options by the number of traded call options. As this ratio increases, it can be interpreted to mean that investors are putting their money into put options rather than call options. An increase in traded put options signals that investors are either starting to speculate that the market will move lower, or starting to hedge their portfolios in case of a sell-off...

Wednesday, 19 December 2012

DIFFERENCE BETWEEN CALL AND PUT OPTION

An Options are of two types one is call option and other is put option, let’s look at the differences between call and put option to get a better idea about both of them –
1.    A call option is one which allows the buyer of the option to buy an agreed quantity of stock, while put option is one which allows the buyer of the option to sell agreed quantity of stock
2.    A person who buys call option is bullish on the stock while the seller of call option is bearish on the stock....

Tuesday, 18 December 2012

BOOK PROFIT IN SESAGOA BULL CALL SPREAD

BOOK PROFIT IN SESAGOA BULL CALL SPREAD GIVEN ON  
10 DEC 2012
190 CALL TRADING @ 9
200 CALL TRADING @ 3
NET GAIN 6
COST 3.5
NET PROFIT 2.5*1000 =2500 PER LOT


More about Option Call Put tips on google+

Tuesday, 11 December 2012

SESAGOA OPTION STRATEGY(BULL CALL SPREAD)

LEG1: Buy SESAGOA 190 call @ 6
LEG2: Sell SESAGOA 200 call @ 2.50
Net Risk  =(6-2.50)*1000=3500
OUT LOOK  5-7 Days
Pay off table....