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

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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...

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....

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

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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....

BOOK PROFIT IN NIFTY STRADDLE STRATEGY

NIFTY STRADDLE STRATEGY ROCKS!!!!!!!!!

Nifty 5600 straddle strategy given on 19 nov 2012 composed of 5600 put @ 50 and 5600 call @ 45.

Nifty closed at 5825 today. The total cost of this strategy was 95.

Return from 5600 call = 5825-5600=225

Return from 5600 put= 0

Profit per lot is (225-95)=130.

Total   profit given by this strategy is 130  per lot. Hope u have booked profit.
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HOW TO PUT STOP LOSS IN OPTION?

A stop loss is an order placed with a broker to sell a security when it reaches a certain price and is designed to limit an investor's loss . A good stop based on closing prices is one that is placed 3% below a rising trend line. The stop is triggered only if the stock closes at or below the stop....

COVERED CALL OPTION

Selling the call obligates you to sell stock you already own at strike price  if the option is assigned. One can run this strategy after they have already seen nice gains on the stock. Often, they will sell out-of-the-money calls, so if the stock price goes up, they are willing to part with the stock and take the profit....

HEDGING FUTURE WITH OPTION

Hedging in common words is insuring against a negative event. This doesn't prevent a negative event from happening, but if it does happen and you're properly hedged, the impact of the event is reduced.
 HEDING FUTURE WITH OPTION

 1.Note the size of your futures position and buy a corresponding number of options.....

NIFTY LONG STRADDLE STRATEGY

Buy Nifty 5600 call @45

Buy Nifty 5600 put @50

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PAY OFF TABLE