Friday 16 March 2018

Iron Condor Vs Iron Butterfly? Which Is better?


These are both short Vega trades, meaning that they benefit from volatility lowering, however, the structure is different and the pros and cons of each are different.
The Iron Condor is perhaps the most popular option spread trade. The structure is selling a call vertical and a put vertical out of the money, usually by several strikes. This is what you might call a “strangle”.
Which is Better?
The Iron Condor would be better than the more narrow strike Iron Butterfly. The downside of using an Iron Condor is that when it does go against you, it is more difficult to repair and/or you can lose more money because you took in less premium, by selling options that were further from the money.
Overall, though, it does have a good probability of profit greater than that of the Iron Butterfly.
The Iron Butterfly is also a trade that benefits from lowering volatility. It is structured by selling an at-the-money call vertical and an at-the-money put vertical with varying long wing widths.
Risk-To-Reward
The Iron Butterfly has more narrow structures than the Iron Condor, however, it has a better risk-to-reward, because your return can be so much higher on-the-money at risk than with the Iron Condor.
This is because you received more premium selling the at-the-money options. Because it has this greater risk/reward, the Iron Butterfly can be put on in a wider range of markets, both lower volatility and higher volatility.
Volatility
Even though it is short volatility, it still performs well, even in lower volatility markets because of the risk reward.
Of course, both of these trades, require that the price stay inside of a range for the trade to be profitable. The Iron Condor gives you more room and the Iron Butterfly gives you less room for the price to roam. However, overall in most markets, I preferred the Iron Butterfly, because of the increase risk reward.


Friday 23 February 2018

OPTION STRATEGY FOR RELCAPITAL

Option strategy
 BUY 1 LOT RELCAPITAL 480 CALL @ 17-18 
 AND
 BUY 1 LOT 440 PUT @ 12-13 

For targets and follow up stay tuned..........

Thursday 15 February 2018

How To make money with PUT Options

The Basic Put Option 
A put option provides an investor with the right, but not the obligation to sell a stock at a specific price.This price is known as the strike, or exercise price.
If you believe a specific stock or market will go downwards in near future you buy plain put option for that particular stock or index.The price of this option moves opposite to underlying security price.

Writing Put Options for Income
Buying a put option is similar to going short on a stock, or profiting from a fall in the stock price.  However, an investor can also short, or write a put option.  This lets him or her receive income in the form of receiving the option price and the hope is the stock remains above the strike price.  If the stock falls below the strike price, the put writer has the obligation to buy the stock (because it is effectively “put” to him or her) from the put option holder.  Again, this occurs if the stock price falls below the exercise price.
When writing put options, the investor who is short is betting that the stock price will remain above the exercise price during the term of the option.  When this happens, the investor is able to keep the premium and earn income from the strategy.
Combining One Put with Another Option 
To create  a more advanced strategy and demonstrate the use of put options in practice, consider combining a put option with a call option.   This strategy is known as a straddle and consists of buying a put option as well as going long a call option.  In this case, the investor is speculating that the stock is going to have a relatively significant move either up or down. 
For example, assume a stock trades at Rs 1000.  The straddle strategy can be relatively straightforward and consist of purchasing both the put and call at a strike price of 1000.  Two long options are purchased with the same expiration date and a profit is reached if either the stock moves up or down by more than the cost to purchase both options. 

Looking at an actual stock,  shares of Reliance recently traded around 1000 per share.  A call option trades at Rs 14 and a put option trades at Rs 15 for a total cost of Rs 28 for a single contract.  In this case, the stock would have to move up past Rs 1028 for the call option to start to pay off and below Rs 972 for the put strategy to start to pay off.

Friday 2 February 2018

NIFTY STRAP STRATEGY BOOKED PROFIT

"NIFTY 10900 PUT HOPE U HAVE BOOKED PROFIT @ 190  PROFIT OF 6375 IN JUST 1 LOT.
FOR NEXT UPDATE KEEP READING...
TO GET LIVE OPTION STRATEGY WHATSAPP ON 9039542248 

NIFTY STRAP STRATEGY BOOK PROFIT

"NIFTY 10900 PUT BOOK PROFIT IN 10900 PUT NEAR 190 BUY GIVEN @ 105 "
TO GET LIVE CALLS FOR FUTURE/OPTIONS PLEASE FILL UP THE FORM GIVEN HERE>>>
OR WHATSAPP ME ON 09039542248


Monday 29 January 2018

Monday 8 January 2018

Monday 1 January 2018

RELCAPITAL STRANGLE STRATEGY FOR JAN 2018

"BUY 1 LOT RELCAPITAL 620 CALL @ 26
AND
BUY 1 LOT RELCAPITAL 580 PUT @ 19"
PAY OFF TABLE :-