We have booked 820 put @ 48 earlier and booked 840 call @ 9.30 today. So net profit of 6875 is made in this strategy .Hope you have booked this strategy.
Thursday 29 August 2013
Thursday 22 August 2013
BOOK PROFIT IN RELIANCE STRATEGY
RELIANCE STRANGLE STRATEGY UPDATE:
Reliance 820 put book profit near 47-48.
Reliance 820 put book profit near 47-48.
Saturday 17 August 2013
RELIANCE STRANGLE STRATEGY
Buy Reliance 820 put @ 15
Buy Reliance 840 call @ 15
Cost=30
Risk per lot =7500
Return=Unlimited
Upper break given point=870
Lower break given point=790
Pay off table....
Tuesday 13 August 2013
POSITION TRADING
POSITION TRADING: that trading
method is used when the trader is going to make a decision within a given
context or certain criteria while INTRADAY TRADING is
strictly mechanical.
A Position Trader is going to
hold his position for a long time frame from months to years. It’s really a
safe way of investing with a relatively small amounts of capital.
DISADVANTAGE OF POSITION TRADING
Your trades might take months and the profits will only barely be able
to cover your cost of overhead.
Day Trader: This type of trader is more skilled and
flexible as Intraday trading requires experience – lots of it – especially
focusing on order entry techniques and a deep understanding of exit points as
he is trying to make profits from a small change in prices with rapid trades
during the trading day.
And usually he tries to close all his positions before the market closes
and doesn’t leave any open positions overnight. Intraday traders base their
trades on strategies such as Swing trading, arbitrage,
candlestick patterns and trend lines.....
Thursday 1 August 2013
CALENDAR OPTION SPREAD
The
calendar spread refers to a family of spreads involving options of the
same underlying stock, same
strike prices, but
different expiration months. They can be created
with either all calls or
all puts. Also known
as time spread or horizontal spread.
Call Calendar Spread
Using
calls, the calendar spread strategy can be setup by buying long term calls and simultaneously writing an equal number of
near-month at-the-money or
slightly out-of-the-money calls
of the same underlying security with
the same strike price.
The
idea behind the calendar spread is to sell time, which is why calendar spreads
are also known as time spreads. The options trader hopes that price of the
underlying remains unchanged at expiration of the near month options so that
they expire worthless. As the time decay of near month options is at a faster
rate than longer term options, his long term options still retain much of their
value. The options trader can then either own the longer term calls for less or
write some more calls and repeat the process....
Subscribe to:
Posts (Atom)