IT'S TIME TO TRADE WITH PLAIN VANILLA RATHER THAN COMPLEX STRATEGIES

Due to low volatility in the market we decided to trade plain vanilla strategies instead of complex option strategies
 here is the summery traded this week 

15 NOV  2018 

SIEMENS 920 CALL BUY GIVEN @ 37 BOOKED @ 54

RISK :  18500: : RETURN : 27000

16 NOV 2018

SIEMENS 960 CALL BUY GIVEN @ 34 BOOKED @ 49 

RISK :  17000: : RETURN : 24500

19 NOV 2018 

RELINFRA 340 CALL BUY GIVEN 10.4 BOOKED @ 25 

RISK :  13520 : : RETURN : 33800

FOR SUCH STRATEGIES JOIN US NOW FOR MORE DETAILS CONTACT ON WHATSAPP 9039542248

Short Butterfly

The short butterfly is a neutral strategy like the long butterfly but bullish on volatility. It is a limited profit, limited risk options trading strategy. There are 3 striking prices involved in a short butterfly spread and it can be constructed using calls or puts. 

SHORT BUTTERFLY CONSTRUCTION

Ø  SELL 1 ITM CALL

Ø  BUY 2 ATM CALLS

Ø  SELL 1 OTM CALL

Short Call Butterfly

Using calls, the short butterfly can be constructed by writing one lower striking in-the-money call, buying two at-the-money calls and writing another higher striking out-of-the-money call, giving the trader a net credit to enter the position.

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OPTION TRADING STRATEGIES : HOW TO USE THEM FOR MAKING PROFIT IN ANY MARKET SITUATION

 How to Use Option Trading Strategies in any Market Situation

Option strategies are implemented by combining one or more option positions and possibly an underlying stock position.

In other words, a trading strategy is a calculated way of using options singly or in a combination, in order to make a profit from market movements.

Option strategies can give you a greater profit with less risk compared with the traditional buying and selling of stock.

One vitally important thing to consider when investing is when to get out and how. An effective exit strategy needs to be decided upon in advance, and stuck to without allowing emotions to sway you.

There are many types of option trading strategies that can be applied, depending on your opinion, or ‘prediction,’ of which direction the underlying stock is going to move.

A guideline for picking the right stocks to go with the right options strategies is available by reading “Options Strategies for Different Stock Styles”. The various stock movements are taken into account – bullish and bearish – as well as major moves, or slower, moderate moves, in either direction - and a strategy that can be applied to each of these movements.

HURRY....!!!!!!! NEW YEAR OFFER ON OPTION PACKAGE

"HAPPY GUDI PADWA & VERY HAPPY NEW YEAR...!!!!!"

(The Holy festival which marks the beginning of the New Year, new month and new day for Hindus)
New year offer....
10 % discount  on monthly package of option i.e 4500 for direct payment please visit ... http://www.richerconsultancy.com/payment-conditions.html
or call  +91-9826586510

LONG STRANGLE STRATEGY

Components

Long one put option with a lower strike price and long one call option at a higher strike price.

Risk / Reward

Maximum Loss: Limited to the total premium paid for the call and put options.

Maximum Gain: Unlimited as the market moves in either direction.

Characteristics

When to use: When you are bullish on volatility but are unsure of market direction....

5 MISTAKES WHILE TRADING IN OPTION

1.Not having a defined exit plan

2.Trying to make past losses by doubling up

3.Trading illiquid option

4.Waiting too long to buy back short strategies

5.Legging into spread trades

CALL BACKSPREAD STRATEGY

The call backspread (reverse call ratio spread) is a bullish strategy in options trading that involves selling a number of call options and buying more call options of the same underlying stock and expiration date at a higher strike price. It is an unlimited profit, limited risk options trading strategy that is taken when the options trader thinks that the underlying stock will experience significant upside movement in the near term....

BULLISH OPTION STRATEGIES

BULL CALL SPREAD

For bullish investors who want a nice low risk, limited return strategy without buying or selling the underlying stock, bull call spreads are a great alternative. The bull call spread involves buying and selling the same number of call options at different strike prices.

BULL PUT SPREAD

For bullish investors who want a nice low risk, limited return strategy, bull put spreads are another alternative. The bull put spread involves buying and selling the same number of put options at different strike prices.....

IFCI STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

IFCI  is extremely volatile these days. Annulized volatility of IFCI is above 91.We suggest strangle strategy in IFCI to make most of this situation.

                      

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.

IFCI STRANGLE STRATEGY

LEG1: BUY IFCI 25 CALL @ .75

LEG2: BUY IFCI 20 PUT @ .85

COST =12800     

 RISK PER LOT = (.75+.85)*80000=12800

RETURN = UNLIMITED

LOWER BREAK EVEN POINT :18

HIGHER BREAK EVEN POINT 27

Pay off table

Closing price	Lot size	trading cost	Total Investment	Return from call	return from put	Payoff
17	8000		12800	0	24000	11200
17.5	8000		12800	0	20000	7200
18	8000		12800	0	16000	3200
18.5	8000		12800	0	12000	-800
19	8000		12800	0	8000	-4800
19.5	8000		12800	0	4000	-8800
20	8000		12800	0	0	-12800
20.5	8000		12800	0	0	-12800
21	8000		12800	0	0	-12800
21.5	8000		12800	0	0	-12800
22	8000		12800	0	0	-12800
22.5	8000		12800	0	0	-12800
23	8000		12800	0	0	-12800
23.5	8000		12800	0	0	-12800
24	8000		12800	0	0	-12800
24.5	8000		12800	0	0	-12800
25	8000		12800	0	0	-12800
25.5	8000		12800	4000	0	-8800
26	8000		12800	8000	0	-4800
26.5	8000		12800	12000	0	-800
27	8000		12800	16000	0	3200
27.5	8000		12800	20000	0	7200
28	8000		12800	24000	0	11200
28.5	8000		12800	28000	0	15200
29	8000		12800	32000	0	19200
29.5	8000		12800	36000	0	23200
30	8000		12800	40000	0	27200
30.5	8000		12800	44000	0	31200
31	8000		12800	48000	0	35200
31.5	8000		12800	52000	0	39200

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.