OPTION TRADING TIPS: derivative trading tips

Showing posts with label derivative trading tips. Show all posts

Wednesday, 31 October 2012

BOOK PROFIT IN IDFC BULL CALL SPREAD STRATEGY

IDFC strategy given on 25 oct 2012 is giving current profit of 1.1 contd to hold ...Book profit when you get profit of Rs 3. IDFC 160 NOV call is trading at 7.30 and IDFC 170 NOV call is trading at 3.20 now.More about Option Call Put tips on google+

Monday, 24 September 2012

FREE OPTION CALL PUT TIPS

To get FREE OPTION CALL PUT TIPS please fill the form on right side of your screen

Tuesday, 21 August 2012

TATASTEEL STRANGLE STRATEGY

Our Tatasteel strangle strategy given in post is giving the profit of Rs 4, contd. to hold....

Thursday, 16 August 2012

TATASTEEL SHORT STRANGLE STRATEGY

FRIDAY being a shy day for the market ,followed by a close of 3 days we are giving a short strangle strategy. This strategy is aiming to encash option time value.

SELL TATASTEEL 400 CALL @9

SELL TATASTEEL 400 PUT @9

TOTAL RETURN=(9+9)*500=9000

FUTURE OPTION TIPS FOR 10 AUG 2012

The SBI 1950 PUT made a high of 63 today, Book profit near Rs. 70 and SBI 2100 CALL still contd... to hold.

BUY ITC 270 CALL @3.20 TG 4.90 ,6.50 SL 2.

Tuesday, 24 July 2012

FUTURE OPTION TIPS FOR 25 JULY 2012

NIFTY STRANGLE STRATEGY MADE A HIGH OF 94 TODAY, BOOK @ 100.

THE CALL GIVEN OF NIFTY 5200 PUT HAS ALSO ACHIEVED ITS FIRST TG, THE CALL OF J P ASSOSIATES GIVEN IN OUR LAST POST HAS ALSO ACHIEVED ITS TG’S.

BUY TITAN FUTURE ABOVE 230 TG 236, 242, 246 SL 226.

BUY LT AUG 1250 PUT @ 13 TG 16, 21 SL 7.

Saturday, 21 July 2012

FUTURE OPTION TIPS FOR 23 JULY 2012

BUY UNITECH FUTURE ABOVE 24 TG 25.5, 27.70, 28.90 SL 22.80

SELL JP ASSOSIATES FUTURE BELOW 72 TG 76.20, 75.10, 74.50 SL 78.30

BUY NIFTY 5200 CALL @40 TG 60, 85 ,100 SL 20

Wednesday, 18 July 2012

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

Wednesday, 13 June 2012

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

Here we attempt to explain basic difference between Future and Option Contracts

Premium

While you pay a fee called the "premium" when buying stock options, there are no premiums to be paid in a futures contract. The initial amount of money (known as "Initial Margin") paid when you buy a futures contract is a fraction of the price paid for the underlying stock. While wrinting options you receive premium.

Obligations

Buyers of stock options are not obligated to exercise the rights to buy the underlying stock at all while buyers of futures contracts or option writers are obligated settle difference with cash market and pay mark to mark daily.

Liability

Buyers of futures contracts and option writers are exposed to unlimited liability should prices move against them while buyers of stock options lose only the amount of money used to purchase those stock options.

Expiration

Buyers of futures contracts can carry forward their position by selling current month contract and buying next month or vice versa. Options expire worthless if the options are out of the money.

Versatility

Options trading is a lot more versatile than futures trading as the unique combination of call options and put options along with the premium on each contract made it possible for options strategies that profit in all directions. Apart from arbitraging, futures trading is basically single directional (you make money only when price moves in one direction).

By now, it should be clear that futures and stock options trading are two totally different things with their own trading characteristics. Futures trading is an important risk management and speculative technique while options trading has evolved to become a stand-alone strategic investment. Futures should never be made a replacement for stock options trading and stock options trading cannot replace Futures as well. Both trading instruments serves different purposes and should find their place in every well diversified portfolio.

Tuesday, 29 May 2012

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

Friday, 3 February 2012

NIFTY OPTION LONG STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

The long strangle, also known as buy strangle or simply "strangle", is a neutral strategy in options trading that involve the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5400 CALL @ 70

LEG2: BUY NIFTY 5000 PUT @ 70

COST =140

RISK PER LOT = 7000