FUTURE & OPTION TRADING TIPS FOR 23 DEC 2015

BUY BANKNIFTY 16500 PUT @ 78 TG 100/145

BUY BHARTIARTL FUTURE ABOVE 324 TG 326.4/328.5 SL 320.55

Nifty slipped 48points or 0.6 percent at 7786. Total call put ratio in nifty option is   0.83   & in stock option is 0.48. Most active call in stock option is Reliance 1000 call and Rcom 90 call while Axis bank 440 put was most active put option

COVERED LONG HEDGE WITH OPTION STRATEGY

Today we offer you Sbin Long Future strategy covered with long Put.In light of expected RBI policy we believe this strategy will give you high upside potential with limited down side risk.
You buy stock because you’re bullish and expect the stock's price to go up. Since you’re bullish, chances are you aren’t too preoccupied with the downside. But as we all know, markets can shift quickly. Puts are a handy tool to help lock in profits on your existing positions in the event of a sudden reversal. This is the strategy which is ideal in this case.  
1ST LEG 

"Buy SBIN Future Jun @ 280"

2ND LEG

"Buy SBIN Jun 280 Put @ 10"

BINARY OPTION STRATEGIES & MANAGEMENT

As an entertaining and interesting trading method, binary option trading is becoming popular among the investors day by day.

A lot of binary option strategies are available which the traders use in order to succeed in trade. The basic concepts of all binary option strategies are the same although different investors follow different strategies. As opposed to other trades, binary option trading offers only two probable outcomes, loss or gain.

In binary option trading the turnover is fast which is yielded by calls and puts. Because of this if a good binary option strategy is used, traders would see most of their investments bringing high returns.

There are some basic strategies followed by all traders concerning the binary option strategy guide. The first one is the pairing up of an “in the money” call and money put. That’s why you can still earn money if the spot price is between the two prices at the expiration.

Another useful strategy in binary option trading is the pairing the put with a call into a hedge and double position. This binary option strategy helps to make very high profits.

Binary option betting strategy is another very popular strategy. In this strategy an investor uses a pull or call option if an unexpected move occurs on the market. This strategy is based on the fact that people put positions on indicators which have large scale impacts on the market prices.

Strategies to Help You Get Started with Binary Options Trading

It should come as no surprise that binary options trading is fast emerging as a great alternative  investment channel and a genuine one at that. With real estate prices taking in 2008 and witnessing huge fluctuations ever since, people all around have been looking to find new ways to invest their personal finances.

Binary options trading has been gaining steam in the recent times as more & more people are reading about the simplicity of the binary options trading and the potential return on investment. The fact that it can be done completely online has also seen a lot of work from home moms and even working professionals experiment with binary options trading in spare time. While binary options trading is definitely becoming a viable investment vehicle, there are some risks to binary options trading just like any other investment. Therefore, it always helps to learn the right strategies for binary options trading before you jump into it.

Here are some binary options trading strategies that should come in handy if you want to start with binary options trading:-

HOW TO PICK GOOD STOCK

In India the volume of investments has somehow depleted in the past 3 years. This market situation leaves extremely fragile scope for any bloopers as far as the common private investor is concerned. The intermittent slowdowns have brought the stock market to a situation where there is always a danger of a double dip; something which small traders and investors can hardly afford at this juncture. Hence, it is absolutely necessary for them to strategies and plan their tactics before making any investment decisions. And this is possible only when they know how to pick good stocks, based on serious and factual knowledge of the market, its history and its current trends.

How to Pick Good Stocks: Strategies and Contours

• The most important thing to remember before making any kind of investment is the current financial scenario of the investment destination- whether it is bank accounts, fixed deposits or in our case; the stock market. These do not operate in a financial vacuum and are notorious for their illusive speculativeness and other malpractices. Reading, understanding, observing and internalizing market trends is an art- an art which can be perfected only after years of practice, patience and fortitude. It is no child’s play and small investors with no experience of stock trading can be easy target for frauds. Hence, it is extremely necessary that the investor keeps an eye on the share market, learns its operational norms, peculiar institutional behavior and uninsured risks. Only after the investor, with or without the help of professional advisors, executes this plan of action can he/she hope to make any headway in terms of profits.

BENEFITS AND RISKS OF OPTION TRADING

You may be wondering  why would an investor want to get involved with complicated options, when they could just go out and buy or sell the underlying equity? There are a number of reasons such as:

• An investor can profit on changes in an equities market price without ever having to actually put up the money to buy the equity. The premium to buy an option is a fraction of the cost of buying the equity outright.
• When an investor buys options instead of equity, the investor stands to earn more per dollar invested - options have "leverage."
• Except in the case of selling uncovered calls or puts, risk is limited. In buying options, risk is limited to the premium paid for the option - no matter how much the actual stock price moves adversely in relation to the strike price.

Now thing comes in our mind that if option given these benefits, why wouldn't everyone just want to invest with options? Options have characteristics that may make them less attractive for certain investors.

IFCI BULL CALL SPREAD OPTION STRATEGY

OPTION CALL PUT STRATEGY

Here we present you Bull call spread option trading strategy which is explained in detail in our earlier post http://optioncallputtradingtips.blogspot.in/ This is very short term strategy with current expiry outlook

IFCI BULL CALL SPREAD STRATEGY

LEG1: BUY IFCI 35 MAY CALL OPTION @.80

LEG2: SELL IFCI 37.5 MAY CALL OPTION @ .20

COST =4800       

 RISK PER LOT = (.80-.20)*8000=4800

MAX RETURN 15200

Pay off table

Strike Price	Call Option Price	Strike Price	Call Option Price	Strike rate	Closing price	Lot size	Payoff
35	0.8	37.5	0.2	0.25	33.5	8000	-4800
35	0.8	37.5	0.2	0.25	33.75	8000	-4800
35	0.8	37.5	0.2	0.25	34	8000	-4800
35	0.8	37.5	0.2	0.25	34.25	8000	-4800
35	0.8	37.5	0.2	0.25	34.5	8000	-4800
35	0.8	37.5	0.2	0.25	34.75	8000	-4800
35	0.8	37.5	0.2	0.25	35	8000	-4800
35	0.8	37.5	0.2	0.25	35.25	8000	-2800
35	0.8	37.5	0.2	0.25	35.5	8000	-800
35	0.8	37.5	0.2	0.25	35.75	8000	1200
35	0.8	37.5	0.2	0.25	36	8000	3200
35	0.8	37.5	0.2	0.25	36.25	8000	5200
35	0.8	37.5	0.2	0.25	36.5	8000	7200
35	0.8	37.5	0.2	0.25	36.75	8000	9200
35	0.8	37.5	0.2	0.25	37	8000	11200
35	0.8	37.5	0.2	0.25	37.25	8000	13200
35	0.8	37.5	0.2	0.25	37.5	8000	15200
35	0.8	37.5	0.2	0.25	37.75	8000	15200
35	0.8	37.5	0.2	0.25	38	8000	15200
35	0.8	37.5	0.2	0.25	38.25	8000	15200
35	0.8	37.5	0.2	0.25	38.5	8000	15200
35	0.8	37.5	0.2	0.25	38.75	8000	15200
35	0.8	37.5	0.2	0.25	39	8000	15200
35	0.8	37.5	0.2	0.25	39.25	8000	15200
35	0.8	37.5	0.2	0.25	39.5	8000	15200
35	0.8	37.5	0.2	0.25	39.75	8000	15200

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