Wednesday 26 December 2012

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

More about Option Call Put tips on google+

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...