Tuesday, 30 April 2013

Monday, 29 April 2013

SBIN STRANGLE STRATEGY


SBIN STRANGLE :
BUY SBIN 2400 CALL @ 40 AND 
BUY SBIN 2150 PUT @ 44

LOT SIZE : 125
TOTAL INVESTMENT(40+44)*125=10500
RETURN UNLIMITED

Saturday, 27 April 2013

CALL BACKSPREAD STRATEGY

The call backspread (reverse call ratio spread) is a bullish strategy in options trading that involves selling a number of call options and buying more call options of the same underlying stock and expiration date at a higher strike price. It is an unlimited profit, limited risk options trading strategy that is taken when the options trader thinks that the underlying stock will experience significant upside movement in the near term....

Tuesday, 23 April 2013

BROKERAGE AND TAX

If combine this with the fact that inflation reduces the value of money over time, you are just loosing money if you do not invest wisely without understanding brokerage and inflation. A stockbroker earns a commission on whatever transaction you make. Suppose you make a transaction of Rs.2000, and the stockbroker charges you a 3% commission, then you have to pay the stockbroker Rs.60 for the transaction. So your total investment in the transaction in not Rs.2000. The total investment in the transaction is Rs.2060/-Brokers make money on whatever transaction you make. Whether you buy or sell, brokers will make money. Because brokers basically make money on transactions.....

Wednesday, 17 April 2013

BULLISH OPTION STRATEGIES

BULL CALL SPREAD
For bullish investors who want a nice low risk, limited return strategy without buying or selling the underlying stock, bull call spreads are a great alternative. The bull call spread involves buying and selling the same number of call options at different strike prices.
BULL PUT SPREAD
For bullish investors who want a nice low risk, limited return strategy, bull put spreads are another alternative. The bull put spread involves buying and selling the same number of put options at different strike prices.....

Tuesday, 16 April 2013

MISTAKES TO AVOID WHILE TRADING IN OPTION


5 Mistakes to avoid while trading in option
1. Not having a defined exit plan
2. Trying to make past losses by doubling up
3.Trading illiquid option
4.Waiting too long to buy back short strategies
5.Legging into spread trades

Tuesday, 9 April 2013

STRANGLE STRATEGY:CASH TIME

A short strangle gives  the obligation to buy the stock at strike price A and the obligation to sell the stock at strike price B if the options are assigned. You are predicting the stock price will remain somewhere between strike A and strike B, and the options you sell will expire worthless.
By selling two options, significantly increase the income you would have achieved from selling a put or a call alone. But that comes at a cost. There is  unlimited risk on the upside and substantial down. This strategy is only for the most advanced traders who like to live dangerously .
There are two break-even points:
·         Strike A minus the net credit received.
·         Strike B plus the net credit received.
PROFITS AND LOSSES IN THE STRATEGY:....

Wednesday, 3 April 2013

OPTION STRATEGIES PACKAGE

We have posted a sample strategy Nifty strangle strategy  on our blog. If you wish to get more such rocking!!!(5-7)  strategies in a month join our option strategies package. The traders having lack of time but interested in trading will love this package which gives LOW RISK HIGH RETURNS.
Price of our OPTION STRATEGY PACKAGE :
Monthly:     5000
Quarterly:   10000
Half yearly: 18000
Yearly :      35000
CONTACT @ 9179333088 FOR DETAILS  

CALCULATION OF PROFIT N LOSS IN OPTION TRADING

While it comes to calculation, there are 2 things we have to learn – how to calculate the break even point of an option and how profits/losses are calculate. Let’s go with an example, nifty to understand better how profits and losses are calculated in options trading. The lot size of nifty is 50 shares in number irrespective of call or put. The profit/loss does not depend on the type of call , expiry or strike price. It directly depends only on premium which trader selects while purchasing the option....

Tuesday, 2 April 2013

BOOK PROFIT IN NIFTY STRANGLE STRATEGY

 Buy Nifty 5800 call @40 (sold at 88) and Buy Nifty 5700 put @ 76 (sold at 106) in last post. Net cost was  196 now it is 106 ,Book profit of (196-106)*50=4500 in the strategy given in post.