DLF STRANGLE STRATEGY ROCKS GIVEN ON 19 AUG 2020

DLF 165 CALL ROCKS BOOKED PROFIT @ 9.4 BUY GIVEN @ 3.3 PROFIT 20130 

DLF 155 PUT BUY GIVEN @ 3.5 LOSS OF 11550 

NET PROFIT 8580

GET ROCKING STRANGLE STRATEGY LIVE JOIN US NOW ON WHATSAPP 9039542248 

BEST OPTION CALL PUT TIPS

1. Clear Vision Of Target

We must always remember that reward and risk go hand-in-hand in trading and that we cannot expect to achieve high returns without planning for high risk (i.e. draw-downs). Your objectives and goals will be very specific to you, but they must have the following characteristics to be useful:

Be measurable
Be achievable
Be worthwhile
Be positive 

2. Discipline

This is most important part of option trading. In order to realize the full potential of your trading systems it is critical that you take every trading entry, adjust every stop, and close out every trade as and when your system says you should do

3. Never add to a losing trade

Averaging is Options could prove to be very dangerous as there is always time factor.

FUTURE OPTION TIPS FOR 19 JULY 2012

BUY ICICI BANK 944 CALL OPTION@ 14TG 18,22,25 SL 9

BUY HINDUNILVR FUTURE ABOVE 450 TG 455, 461 SL 444

FUTURE OPTION TIPS FOR 21 JUN 2012

TATASTEEL call given in our NIFTY TIPS made a high of Rs.13.40 today.

BUY NIFTY 5100 CALL ABOVE 75 TG `100 ,125, 140 SL 60

FUTURE OPTION TIPS FOR 19 JUN 2012

BUYTATASTEEL 420 CALL @ 9 TG  14, 17, 20

BUY NIFTY FUTURE ABOVE 5080  TG 5110 ,5140,5170 SL 5050 .

SELL CAIRN INDIA FUTURE BELOW 325 TG 315 SL 332

Petronet Strangle Option Strategy

LEG1: BUY PETRONET 140 CALL @ 2.5

LEG2: BUY PETRONET 130 PUT @ 2.5

COST =5

LOT SIZE =2000       

 RISK PER LOT = 10000

RETURN = UNLIMITED

Read More For Pay off table.......

FUTURE VS OPTION

The main fundamental difference between  Future and option lies in the obligations they put on their buyers and sellers. An option gives the buyer the right, but not the obligation to buy or sell a certain asset at a specific price at any time during the life of the contract. A futures contract gives the buyer the obligation to purchase a specific asset, and the seller to sell and deliver that asset at a specific future date, unless the holder's position is closed prior to expiration.

Aside from commissions, an investor can enter into a futures contract with no upfront cost whereas buying an options position does require the payment of a     Premium. Compared to the absence of upfront costs of futures, the option premium can be seen as the fee paid for the privilege of not being obligated to buy the underlying in the event of an adverse shift in prices. The premium is the maximum that a purchaser of an option can lose.......

FREE FUTURE OPTION TIPS

TO GET FREE FUTURE OPTION TIPS PLS  PROVIDE YOUR MOBILE NUMBER AND NAME IN "GET FREE TIPS FORM " 

OPTION WRITING - 3 MISTAKES

As our markets are becoming mature, the number of option writers is increasing. It is believed than generally 80 % of option buyers loose money so what should we do..Option writing is other way round..

Option writing or in other words option selling means to sell option call and puts for a premium.

But while option selling can be a powerful way to diversify into a non-correlated, non-directional strategy, there is no free lunch. Writing options is one of those strategies that is easy to understand but infinitely more difficult to master.

Experience shows, however, that not doing the wrong things will have as much, if not more, an impact on your portfolio’s ultimate performance than doing all of the right things. Therefore, we can learn a lot from the errors of others. To that end, we’ll explore the three biggest mistakes that option sellers make and, more importantly, discuss simple ways to avoid making them.

OPTION TRADING VS.STOCK CASH

Many traders now a day intend to shift from cash market to option market ,here is a comparison made to make it easy for them.

What is an option?

An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date.

An option is a derivative. That is, its value is derived from something else. In the case of a stock option, its value is based on the underlying stock (equity). In the case of an index option, its value is based on the underlying index (equity).

An option is a security, just like a stock or bond, and constitutes a binding contract with strictly defined terms and properties.

Options vs. Stocks

Similarities:

1) Listed Options are securities, just like stocks.
2) Options trade like stocks, with buyers making bids and sellers making offers.
3) Options are actively traded in a listed market, just like stocks. They can be bought and sold just like any other security.Differences:
1) Options are derivatives, unlike stocks (i.e, options derive their value from something else, the underlying security
2) Options have expiration dates, while stocks do not.
3)There is not a fixed number of options, as there are with stock shares available.
4)Stockowners have a share of the company, with voting and dividend rights. Options convey no such rights.

for more insights u can read http://optioncallputtradingtips.blogspot.in/2012/05/call-option-put-option.html

Option Call Put Strategy

Option Call Put Strategy

Options provide  liberty to make profits in almost every kind of market provided  u judge it correctly. Option strategies in this post are categorized as per market conditions

Bullish strategies

Bullish options strategies are employed when the options trader expects the underlying stock price to move upwards. It is necessary to assess how high the stock price can go and the time frame in which the rally will occur in order to select the optimum trading strategy.

The most bullish of options trading strategies is the simple call buying strategy used by most novice options traders.

Stocks seldom go up by leaps and bounds. Moderately bullish options traders usually set a target price for the bull run and utilize bull spreads to reduce cost. (It does not reduce risk because the options can still expire worthless.) While maximum profit is capped for these strategies, they usually cost less to employ for a given nominal amount of exposure. The bull call spread and the bull put spread are common examples of moderately bullish strategies.

Mildly bullish trading strategies are options strategies that make money as long as the underlying stock price does not go down by the option's expiration date. These strategies may provide a small downside protection as well. Writing out-of-the-money covered calls is a good example of such a strategy.

Bearish strategies

Bearish options strategies are employed when the options trader expects the underlying stock price to move downwards. It is necessary to assess how low the stock price can go and the time frame in which the decline will happen in order to select the optimum trading strategy.

The most bearish of options trading strategies is the simple put buying strategy utilized by most novice options traders.

Stock prices only occasionally make steep downward moves. Moderately bearish options traders usually set a target price for the expected decline and utilize bear spreads to reduce cost. While maximum profit is capped for these strategies, they usually cost less to employ. The bear call spread and the bear put spread are common examples of moderately bearish strategies.

Mildly bearish trading strategies are options strategies that make money as long as the underlying stock price does not go up by the options expiration date. These strategies may provide a small upside protection as well. In general, bearish strategies yield less profit with less risk of loss.

Neutral or non-directional strategies

Neutral strategies in options trading are employed when the options trader does not know whether the underlying stock price will rise or fall. Also known as non-directional strategies, they are so named because the potential to profit does not depend on whether the underlying stock price will go upwards or downwards. Rather, the correct neutral strategy to employ depends on the expected volatility of the underlying stock price.

Examples of neutral strategies are:

Guts - sell in the money put and call

Butterfly - buy in the money and out of the money call, sell two at the money calls, or vice versa

Straddle - holding a position in both a call and put with the same strike price and expiration. If the options have been bought, the holder has a long straddle. If the options were sold, the holder has a short straddle. The long straddle is profitable if the underlying stock changes value in a significant way, either higher or lower. The short straddle is profitable when there is no such significant move.

Strangle - the simultaneous buying or selling of out-of-the-money put and an out-of-the-money call, with the same expirations. Similar to the straddle, but with different strike prices.

WHAT IS PUT OPTION

What is PUT OPTION

If you think a stock price is going to go down, then there are 3 trades that you can make to profit from a rising stock price: 

1. you can sell the stock
2. you can buy put options on the stock, or
3. you can write call options on the stock

Selling stock  huge capital investment i.e.your total capital is @ risk plus u need to cover it cover intraday or supply delivery

Writing call option also need huge margin and risk associated with it is unlimited

Buying put option give u unlimited profit upside and limited risk downside.

Only enemy of put option is time so u should book your profits as early as possible.

Let’s understand using an example. Suppose, today’s date is 25-APR-2012 and you BUY a RELIANCE PUT option (strike=700, EXPIRY  MAY 31) @ Rs. 10  per contract when RELIANCE stock was getting traded at 740. Let’s see what happens after options expiration.

Case I : Reliance stock price greater than the strike price  on expiry day cut-off time

Net loss = Premium paid = Rs. 10 per contract

Case II : Reliance stock price less than strike price (700) on expiry day cut-off time i.e. 640

Net profit = (current price – strike price) - premium = (700-640 ) -10= Rs. 50 per contract

So when you buy a put option you have unlimited profit potential but limited risk or downside.

Nifty Short Strangle Strategy

Nifty has been in narrow range for some time. We expect it to continue doing so till budget session and forthcoming election outcome.

Nifty short strangle is our pick for coming week

Sell Nifty 5200 put @ 85

Sell Nifty 5600 call @ 67

Total Return  =(85+67)*50=7600

Lower Break Even Point=5048

Higher Break even Point=5752

KEEP SL Of 50 points

Time Frame =7-10 Days