Thursday 29 November 2012

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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Tuesday 27 November 2012

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....