Friday, 3 June 2016

BANKNIFTY WEEKELY EXPIRY STRANGLE STRATEGY

BUY 1 LOT
"BANKNIFTY 17800 9 JUN CALL@ 110"
"BANKNIFTY 17400 9 JUN PUT@ 107"
KEEP READING FOR TARGET UPDATES...

Friday, 27 May 2016

RELIANCE FUTURE & OPTION COMBO STRATEGY FOR JUNE'2016

"BUY 1 LOT RELIANCE FUTURE @ 970"
"1 LOT RELIANCE 960 PUT @ 19 "
"1 LOT RELIANCE 980 CALL @ 21"
FOR FURTHER UPDATES KEEP READING....

Wednesday, 4 May 2016

FUTURE & OPTION COMBO STRATEGY FOR MAY'2016

"SELL HINDALCO FUTURE @ 92.5" 
"BUY HINDALCO 92.5 CALL @ 4"
"BUY HINDALCO 92.5 PUT @ 4"
FOR TGT UPDATES KEEP READING...

Saturday, 23 April 2016

Friday, 22 April 2016

OBLIGATIONS OF AN OPTION SELLER

UNDERSTANDING ASSIGNMENT RISK
Option sellers collect a cash premium. That's the primary reason that investors sell an option. When that option expires worthless, the cash premium represents the option seller's profit, but it does involve some risk of losing money. Pretty simple stuff.
Similarly, traders may sell an option as part of a spread position. Once again, collecting a cash premium drives the sale. However, this time, the cash collected is used as a hedge, or a trade that offsets the risk of owning another position. Hedging is a bit more complex than simply selling an option. For example, when you buy one call option (hoping for the stock to rally), you can sell a different option, collect some cash, and reduce the sum of money at risk -- just in case your expected rally does not occur. The concept is easy to understand once you learn to understand how options work.) About options for beginners will help.
Options do not always expire worthless, and it is essential that every option trader understands what happens when the option does not expire worthless.
Whenever you sell (write) an option that you do not already own, you become legally obligated to honor the terms of the option contract sold.
WHAT ARE THOSE OBLIGATIONS?
The call seller agrees to sell 100 shares of the underlying stock to the call owner. The trade occurs at the option strike price.  This obligation remains in effect until the option expires.
The put seller agrees to buy 100 shares of the underlying stock from the put owner. The trade occurs at the option strike price.  This obligation remains in effect until the option expires.
 WHAT TRIGGERS THE OBLIGATIONS?
The obligations are only theoretical until something happens that triggers the process. Call owners have the right to force the option seller to honor his/her obligations by exercising those rights. As soon as the call owner instructs his/her broker to exercise, the option seller's obligations are triggered.  Note that the option seller cannot force the option owner to exercise. That decision rests entirely with the option owner who bought the option and paid cash to own the right to exercise.

Tuesday, 12 April 2016

Saturday, 9 April 2016

NIFTY STRADDLE STRATEGY FOR APRIL 2016

"BUY1 LOT NIFTY 7550 CALL @ 110"
"BUY 1 LOT NIFTY 7550 PUT @79"
TOTAL INVESTMENT 14175
PAY OF TABLE :-

IS COVERED CALL WRITING FOR YOU?

ONE BASIC STRATEGY
Covered call writing is a very popular option strategy and is especially well suited for people who are first learning how options work. Once you gain a fairly good understanding of the basic concepts involving options and understand the risk and rewards associated with owning stocks, that is a good time to consider adopting this strategy.
However, there is more to this simple strategy that is apparent at first glance. It is important to understand why an investor would want to write covered calls. Thus, you want to know about the philosophy. Next it is essential to know about the risk, or what can go wrong when you buy stock and sell one call option for each 100 shares owned.
NOTE: The name of the strategy comes from the fact that the stock owner is covered -- if and when he/she is ever assigned an exercise notice on the short call option. In other words, if assigned, the trader already owns the shares and can deliver (sell) them to the person who exercised the option.
IS COVERED CALL WRITING (CCW) FOR YOU?
·         CCW is a strategy for the investor who does not believing in trying to time the market. As long as you are willing to have your cash invested in the specific stock (or index), it is a reasonable idea to own the stock and write the calls. However, if you never want to sell the stock and if your intention is to hold for a long time, then this is not a suitable strategy.
·         CCW is for the investor who wants a higher probability of earning a profit with every trade, even when the profit is limited. Clarification: The profit is earned more frequently than the trader who simply buys stock and does not hedge the position by selling a call option.