IBREALEST OPTION STRATEGY ROCKS !!!!!!!!!!!! BOOK FULL PROFIT

IBREALEST 75 call hope u have booked profit @ 2.5 ,now book profit in 65 Put near 1.5
Total Profit in strategy is 9600.Hope you have booked full profit

SBIN STRANGLE STRATEGY

SBIN STRANGLE :

BUY SBIN 2400 CALL @ 40 AND 

BUY SBIN 2150 PUT @ 44

LOT SIZE : 125

TOTAL INVESTMENT(40+44)*125=10500

RETURN UNLIMITED

HEROMOTOCO STRANGLE STRATEGY

As we have noticed the upward move of the index in past days and we expect this pace to be continued.

We recommend HEROMOTOCO STRATEGY for coming trading sessions.

HEROMOTOCO STRANGLE STRATEGY

LEG1: BUY HEROMOTOCO 1850 CALL @ 25

LEG2: BUY HEROMOTOCO 1850 PUT @ 30

COST =55             

 RISK PER LOT = 6875

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=1905

LOWER BREAK GIVEN POINT=1795

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.

FUTURE OPTION TIPS FOR 20 JULY 2012

SELL TATAMOTORS 220 PUT OPTION @ 1.70 AND SELL TATAMOTORS 230 CALL OPTION @ 2 SL 5.5 (when cumulative price cross 5.5)

NIFTY STRANGLE STRATEGY

Market has been in very narrow range last week. We are expecting nifty to be volatile in this week. For coming sessions we recommend Nifty strangle strategy.options are cheap due to range bound sessions.The risk reward ratio in this strategy is very attractive.

LEG1: BUY NIFTY 5200 PUT @ 40

LEG2: BUY NIFTY 5300 CALL @ 30

COST =70            

 RISK PER LOT = 3500

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=5370

LOWER BREAK GIVEN POINT=5130

OUT LOOK  5-7 Days.

CALL GIVEN OF SBIN IS ROCKING!!!

Our SBIN 2100 PUT Rocks!!  Two targets achieved in SBIN call given in our last post 

FUTURE OPTION TIPS FOR 25 JUN 2012

BUY INDIA INFOLINE (DELIEVERY CASH) ABOVE 64 TG 70 ,74, 80

BUY R POWER FUTURE ABOVE 103 TG 105, 107, 109.

BUY SBIN 2100 PUT @15 TG 28 , 36,42

TIP FOR 20 JUN 2012

TIP FOR 20 JUN 2012 

BUY ITC FUTURE ABOVE 250 TG 255,258,262 SL 245

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 " 

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. 

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 TIPS

To get option tips CLICK HERE 
OR
fill form given to the side of this post.

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.

GET OPTION CALL PUT TIPS ON MOBILE

TO GET OPTION CALL PUT TIPS ON MOBILE

CLICK HERE

PLS FILL  YOUR NAME AND MOBILE NUMBER IN FREE TRIAL FORM

More about Option Call Put tips on google+

OPTION CALL PUT STRATEGY

OPTION CALL PUT STRATEGY

.

Nifty is being trading in a range bound session since a long time, a break out is  at this point. We suggest nifty strangle strategy  is as follows

.

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5200 PUT @ 70

LEG2: BUY NIFTY 5400 CALL @ 45

COST =115          

 RISK PER LOT = 5750

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=5515

LOWER BREAK GIVEN POINT=5085

Pay off table

Strike Price	Call Option Price	Strike Price	Call Option Price	Strike rate	Closing price	Lot size	net investment	Total Investment	Payoff
5400	45	5200	70	50	4550	50	5750	5750	26750
5400	45	5200	70	50	4600	50	5750	5750	24250
5400	45	5200	70	50	4650	50	5750	5750	21750
5400	45	5200	70	50	4700	50	5750	5750	19250
5400	45	5200	70	50	4750	50	5750	5750	16750
5400	45	5200	70	50	4800	50	5750	5750	14250
5400	45	5200	70	50	4850	50	5750	5750	11750
5400	45	5200	70	50	4900	50	5750	5750	9250
5400	45	5200	70	50	4950	50	5750	5750	6750
5400	45	5200	70	50	5000	50	5750	5750	4250
5400	45	5200	70	50	5050	50	5750	5750	1750
5400	45	5200	70	50	5100	50	5750	5750	-750
5400	45	5200	70	50	5150	50	5750	5750	-3250
5400	45	5200	70	50	5200	50	5750	5750	-5750
5400	45	5200	70	50	5250	50	5750	5750	-5750
5400	45	5200	70	50	5300	50	5750	5750	-5750
5400	45	5200	70	50	5350	50	5750	5750	-5750
5400	45	5200	70	50	5400	50	5750	5750	-5750
5400	45	5200	70	50	5450	50	5750	5750	-3250
5400	45	5200	70	50	5500	50	5750	5750	-750
5400	45	5200	70	50	5550	50	5750	5750	1750
5400	45	5200	70	50	5600	50	5750	5750	4250
5400	45	5200	70	50	5650	50	5750	5750	6750
5400	45	5200	70	50	5700	50	5750	5750	9250
5400	45	5200	70	50	5750	50	5750	5750	11750
5400	45	5200	70	50	5800	50	5750	5750	14250
5400	45	5200	70	50	5850	50	5750	5750	16750
5400	45	5200	70	50	5900	50	5750	5750	19250
5400	45	5200	70	50	5950	50	5750	5750	21750
5400	45	5200	70	50	6000	50	5750	5750	24250
5400	45	5200	70	50	6050	50	5750	5750	26750
5400	45	5200	70	50	6100	50	5750	5750	29250
5400	45	5200	70	50	6150	50	5750	5750	31750
5400	45	5200	70	50	6200	50	5750	5750	34250

The long options strangle is an unlimited profit, limited risk strategy that is taken when the options trader thinks that the underlying stock will experience significant volatility in the near term. Long strangles are debit spreads as a net debit is taken to enter the trade.