Tuesday, 25 February 2014

Always Chose Liquid Counters to Trade Options

Simply put, liquidity is all about how quickly a trader can buy or sell something without causing a significant price movement. A liquid market is one with ready, active buyers and sellers at all times.Here’s another, more mathematically elegant way to think about it: Liquidity refers to the probability that the next trade will be executed at a price equal to the last one.Stock markets are generally more liquid than their related options markets for a simple reason: Stock traders are all trading just one stock, but the option traders may have dozens of option contracts to choose from. Stock traders will flock to just one form of DLF stock, for example, but options traders for DLF have perhaps six different expirations and a plethora of strike prices to choose from. More choices by definition means the options market will probably not be as liquid as the stock market.Of course,

Friday, 14 February 2014

BOOK PROFIT IN TATASTEEL STRANGLE STRATEGY

 Tatasteel 360 put  given @  3.5 ,book profit near 8…
Total profit=(8-6.5)*1000=1500

Hope you have booked profit in strategy.

Tuesday, 11 February 2014

TATASTEEL STRANGLE STRATEGY

Buy Tatasteel 420 call @   3
Buy Tatasteel 360 put @  3.5
COST =6.5
RISK PER LOT = 6500
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=426.5
LOWER BREAK GIVEN POINT=353.5
Pay off table:...

Thursday, 6 February 2014

GRAB THE OFFER BEFOR IT EXPIRES

HURRY UP!!!!!!!! ONLY 2 DAYS LEFT FOR THE OFFER
OPTION CALLS REVISED TO 5000 PM TO GET @OLD PRICE 4000 JOIN BEFORE  SATURDAY 08 FEB 14.
TO PAY DIRECT ON WEBSITE VISIT OUR http://richerconsultancy.com/Payment.html

GIVE A CALL ON +919826586510 FOR DISCOUNT ON QUATERLY PACKAGE OR  VISIT OUR WEBSITE http://richerconsultancy.com/

Wednesday, 5 February 2014

PUT CALL 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. 
An increasing ratio is a clear indication that investors are starting to move toward instruments that gain when prices decline rather than when they rise. Since the number of call options is found in the denominator of the ratio, a reduction in the number of traded calls will result in an increase in the value of the ratio. This is significant because the market is indicating that it is starting to dampen its bullish outlook. ,.....

Monday, 3 February 2014

Booking Profit is Important

What if you get out too early and leave some upside on the table......

This is the classic trader’s worry. Here’s the best counterargument I can think of: What if you make a profit more consistently, reduce your incidence of losses, and sleep better at night? Trading with a plan helps you establish more successful patterns of trading and keeps your worries more in check
Whether you are buying or selling options, an exit plan is a must. Determine in advance what gains you will be satisfied with on the upside. Also determine the worst-case scenario you are willing to tolerate on the downside. If you reach your upside goals, clear your position and take your profits. Don’t get greedy. If you reach your downside stop-loss, once again you should clear your position. Don’t expose yourself to further risk by gambling that the option price might come back.
The temptation to violate this advice will probably be strong from time to time. Don’t do it. You must make your plan and then stick with it. Far too many traders set up a plan and then, as soon as the trade is placed, toss the plan to follow their emotions.

Saturday, 1 February 2014

HOW TO CHOOSE A STOCK BROKER

A stock broker is a person who takes care of your investments and act as a mediator by selling and buying the shares/stocks you want. Whenever you want to buy or sell your stocks you have to put it in front of a stockbroker and hence, from there on the stockbroker takes care of the matter by following your order and placing them in the market.....