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.....

MISTAKES TO AVOID WHILE TRADING IN OPTION

5 Mistakes to avoid 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

STRANGLE STRATEGY:CASH TIME

A short strangle gives  the obligation to buy the stock at strike price A and the obligation to sell the stock at strike price B if the options are assigned. You are predicting the stock price will remain somewhere between strike A and strike B, and the options you sell will expire worthless.

By selling two options, significantly increase the income you would have achieved from selling a put or a call alone. But that comes at a cost. There is  unlimited risk on the upside and substantial down. This strategy is only for the most advanced traders who like to live dangerously .

There are two break-even points:

·         Strike A minus the net credit received.

·         Strike B plus the net credit received.

PROFITS AND LOSSES IN THE STRATEGY:....

OPTION STRATEGIES PACKAGE

We have posted a sample strategy Nifty strangle strategy  on our blog. If you wish to get more such rocking!!!(5-7)  strategies in a month join our option strategies package. The traders having lack of time but interested in trading will love this package which gives LOW RISK HIGH RETURNS.

Price of our OPTION STRATEGY PACKAGE :

Monthly:     5000

Quarterly:   10000

Half yearly: 18000

Yearly :      35000

CONTACT @ 9179333088 FOR DETAILS  

CALCULATION OF PROFIT N LOSS IN OPTION TRADING

While it comes to calculation, there are 2 things we have to learn – how to calculate the break even point of an option and how profits/losses are calculate. Let’s go with an example, nifty to understand better how profits and losses are calculated in options trading. The lot size of nifty is 50 shares in number irrespective of call or put. The profit/loss does not depend on the type of call , expiry or strike price. It directly depends only on premium which trader selects while purchasing the option....

BOOK PROFIT IN NIFTY STRANGLE STRATEGY

 Buy Nifty 5800 call @40 (sold at 88) and Buy Nifty 5700 put @ 76 (sold at 106) in last post. Net cost was  196 now it is 106 ,Book profit of (196-106)*50=4500 in the strategy given in post.

NIFTY SHORT STRANGLE STRATEGY

SELL 5800 Apr call  @ 88

SELL 5700 Apr put @ 108

TOTAL RETURN=(88+108)*50= 9800

LOWER BREAK EVEN POINT=5712

HIGHER BREAK EVEN POINT=5808..

BOOK PROFIT IN IDFC STRANGLE STRATEGY

IDFC STRANGLE STRATEGY given on 1 march, IDFC 160 call given @ 1.6 hope you have  booked  profit near 4.5 (i.e. profit of  3800) yesterday keep put contd… to hold

BOOK PROFIT IN IDFC STRANGLE STRATEGY

IDFC STRANGLE STRATEGY given on 1 march, IDFC 160 call given @ 1.6

 made a high of 3.6 today you can book profit near 4.5, keep put contd… to hold

IDFC STRANGLE STRATEGY

LEG1: BUY IDFC 160 CALL @1.60

LEG2: BUY IDFC 130 PUT @1

COST =2.60        

Total risk=5330

Return=unlimited

Pay off table: