Thursday, 29 August 2013

RELIANCE STRANGLE STRATEGY UPDATE


We have booked  820 put  @ 48 earlier and booked 840 call @ 9.30 today. So net profit of 6875 is  made in this strategy .Hope you have booked this strategy.

Thursday, 22 August 2013

Saturday, 17 August 2013

RELIANCE STRANGLE STRATEGY

Buy Reliance 820 put  @ 15
Buy Reliance 840 call @ 15
Cost=30
Risk per lot =7500
Return=Unlimited
Upper break given point=870
Lower break given point=790
Pay off table....

Tuesday, 13 August 2013

POSITION TRADING

POSITION TRADING: that trading method is used when the trader is going to make a decision within a given context or certain criteria while INTRADAY TRADING is strictly mechanical.
A Position Trader is going to hold his position for a long time frame from months to years. It’s really a safe way of investing with a relatively small amounts of capital.
DISADVANTAGE OF POSITION TRADING
Your trades might take months and the profits will only barely be able to cover your cost of overhead.
Day Trader:  This type of trader is more skilled and flexible as Intraday trading requires experience – lots of it – especially focusing on order entry techniques and a deep understanding of exit points as he is trying to make profits from a small change in prices with rapid trades during the trading day.
And usually he tries to close all his positions before the market closes and doesn’t leave any open positions overnight Intraday traders base their trades on strategies such as Swing trading, arbitrage, candlestick patterns and trend lines.....

Thursday, 1 August 2013

CALENDAR OPTION SPREAD

The calendar spread refers to a family of spreads involving options of the same underlying stock, same strike prices, but different expiration months. They can be created with either all calls or all puts.  Also known as time spread or horizontal spread.
Call Calendar Spread
Using calls, the calendar spread strategy can be setup by buying long term calls and simultaneously writing an equal number of near-month at-the-money or slightly out-of-the-money calls of the same underlying security with the same strike price.
The idea behind the calendar spread is to sell time, which is why calendar spreads are also known as time spreads. The options trader hopes that price of the underlying remains unchanged at expiration of the near month options so that they expire worthless. As the time decay of near month options is at a faster rate than longer term options, his long term options still retain much of their value. The options trader can then either own the longer term calls for less or write some more calls and repeat the process....