NIFTY STRANGLE STRATEGY

Buy Nifty Jan 5900 put @70

Buy Nifty Jan 6000 call @78

COST=148

RISK PER LOT=(70+78)*50=7400

RETURN=UNLIMITED

LOWER BREAK EVEN POINT=5922

HIGHER BREAK EVEN POINT=5970

OUTLOOK  FOR 7-9 DAYS

More about Option Call Put tips on google+

CALL PUT RATIO

The put-call ratio is a popular tool specifically designed to help individual investors gauge the overall sentiment of the market. The ratio is calculated by dividing the number of traded put options by the number of traded call options. As this ratio increases, it can be interpreted to mean that investors are putting their money into put options rather than call options. An increase in traded put options signals that investors are either starting to speculate that the market will move lower, or starting to hedge their portfolios in case of a sell-off...

DIFFERENCE BETWEEN CALL AND PUT OPTION

An Options are of two types one is call option and other is put option, let’s look at the differences between call and put option to get a better idea about both of them –

1.    A call option is one which allows the buyer of the option to buy an agreed quantity of stock, while put option is one which allows the buyer of the option to sell agreed quantity of stock

2.    A person who buys call option is bullish on the stock while the seller of call option is bearish on the stock....

BOOK PROFIT IN SESAGOA BULL CALL SPREAD

BOOK PROFIT IN SESAGOA BULL CALL SPREAD GIVEN ON  
10 DEC 2012
190 CALL TRADING @ 9
200 CALL TRADING @ 3
NET GAIN 6
COST 3.5
NET PROFIT 2.5*1000 =2500 PER LOT

More about Option Call Put tips on google+

SESAGOA OPTION STRATEGY(BULL CALL SPREAD)

LEG1: Buy SESAGOA 190 call @ 6

LEG2: Sell SESAGOA 200 call @ 2.50

Net Risk  =(6-2.50)*1000=3500

OUT LOOK  5-7 Days

Pay off table....

BOOK PROFIT IN NIFTY STRADDLE STRATEGY

NIFTY STRADDLE STRATEGY ROCKS!!!!!!!!!

Nifty 5600 straddle strategy given on 19 nov 2012 composed of 5600 put @ 50 and 5600 call @ 45.

Nifty closed at 5825 today. The total cost of this strategy was 95.

Return from 5600 call = 5825-5600=225

Return from 5600 put= 0

Profit per lot is (225-95)=130.

Total   profit given by this strategy is 130  per lot. Hope u have booked profit.
To get direct strategies like this please fill this form---->

More about Option Call Put tips on google+

HOW TO PUT STOP LOSS IN OPTION?

A stop loss is an order placed with a broker to sell a security when it reaches a certain price and is designed to limit an investor's loss . A good stop based on closing prices is one that is placed 3% below a rising trend line. The stop is triggered only if the stock closes at or below the stop....

COVERED CALL OPTION

Selling the call obligates you to sell stock you already own at strike price  if the option is assigned. One can run this strategy after they have already seen nice gains on the stock. Often, they will sell out-of-the-money calls, so if the stock price goes up, they are willing to part with the stock and take the profit....

HEDGING FUTURE WITH OPTION

Hedging in common words is insuring against a negative event. This doesn't prevent a negative event from happening, but if it does happen and you're properly hedged, the impact of the event is reduced.
 HEDING FUTURE WITH OPTION

 1.Note the size of your futures position and buy a corresponding number of options.....

NIFTY LONG STRADDLE STRATEGY

Buy Nifty 5600 call @45

Buy Nifty 5600 put @50

More about Option Call Put tips on google+

PAY OFF TABLE

OPTION BUYING V/S WRITING

Definition of  Buy-Write

Option buying means buying a put option and option writing means selling a put option. Option buying has limited risk where as option writing has as much risk as future.

OPTION BUYING V/S OPTION WRITING

1.Buying options - limited loss, unlimited profits where as Writing options - limited profits, unlimited losses 

2.Option writers have a significantly higher chance of making money as compared to option buyers......

DIWALI 2012 PICKS

1.PANTALOON R

   Buy  around 198 tg 259

   Expected returns= 23.55%

 2.ALEMBIC PHARMA

   Buy  around 68 tg 99-100

   Expected returns=32%...

BOOK PROFIT IN IDFC STRATEGY

IDFC strategy given on 25 oct 2012 is  giving  profit of  3.1 Hope you have booked profit. IDFC 160 NOV call is trading at 10  and  IDFC 170 NOV  call is trading at 4.65 now.More about Option Call Put tips on google+

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+

HOW TO HEDGE FUTURE WITH OPTION

      I.            Buy corresponding number of options as your Future positions. For example, if you have a position size of five futures contracts, purchase five corresponding options to completely hedge your position. Also, make sure the expiration month of the options you purchase matches the expiration date of the futures contracts you own.

  II.            Select a strike price that fits your accepted level of risk tolerance. When you purchase an option, you must specify a strike price. The closer the strike price is to the current futures price, the more expensive the option.

FREE OPTION TIPS ON MOBILE

http://optioncallputtradingtips.blogspot.in/2012/05/get-free-option-call-put-tips-on-mobile.html

More about Option Call Put tips on google+

                  

IDFC BULL CALL SPREAD STRATEGY

Here we present you Bull call spread option trading strategy which is explained in detail in our earlier post http://optioncallputtradingtips.blogspot.in/

IDFC BULL CALL SPREAD STRATEGY

LEG1: BUY IDFC  160 NOV CALL OPTION @ 5.10

LEG2: SELL IDFC 170  NOV CALL OPTION @ 2.2

COST =5800          

 RISK PER LOT = (5.10-2.2)*2000=5800

MAX RETURN 14200

Pay off table

THINGS TO KEEP IN MIND WHILE TRADING OPTIONS

Below given are the DO’S while trading in options

1.Always deal with the market intermediaries registered with Sebi/Exchanges

2.Provide complete and correct email address and mobile number while opening                   trading / demat account.

3.Trade wisely ,create your own trading strategy depending upon the conclusions drawn from the various sources.

4.Insist on a Contract Note for every trade....

BEST TIME TO TRADE IN OPTION

Timing is essential in all financial trades. With option  the fluctuations may be the whole thing! The most appropriate investment saying for it might be, "Buy at the right time"! For example, you may be certain that an asset will rise in value. You are correct, and the asset rises in value during the day, week, etc. But as it was rising it had a few moments of backtracking. If you bought a binary option for the asset to rise, but you timed it for the short period when it lost a bit of value on its way up, you will lose money on the option even though your analysis was completely correct, long term.

Information that Affects Timing

The following points are items that can affect a traders timing:

·         Company earnings reports

·         Government reports

·         Political or social unrest

·         Sudden introduction of a competitive product

·         Volatility. If the asset is being traded more widely than usual, it often indicates strong market sentiment for the asset to continue moving in the same direction for a while.

To calculate the average monthly range one  will need access to reliable historical prices. For any stock, you can get historical open, high, low and closing prices for a given date range. This will give you all the key numbers that will be used in the calculation - the high and the low for each trading day. The average monthly range is nothing more than an average price within which the market fluctuates in a given month between its high and its low.

Timing the Different Types of Option...

NIFTY SHORT STRANGLE STRATEGY

FRIDAY  being a shy day for the market , we are giving a short strangle strategy. This strategy is aiming to en cash option time value.

SELL  Nifty 5700 call @94

SELL Nifty  5800 put @96
TOTAL RETURN=(94+96)*50= 9500

LOWER BREAK EVEN POINT=5606

HIGHER BREAK EVEN POINT=5896

STOPLOSS WHEN CUMULATIVE PRICE GOES TO 230

OUTLOOK  FOR 7-9 DAYS

BEST OPTION CALL PUT TIPS

1. Clear Vision Of Target

We must always remember that reward and risk go hand-in-hand in trading and that we cannot expect to achieve high returns without planning for high risk (i.e. draw-downs). Your objectives and goals will be very specific to you, but they must have the following characteristics to be useful:

Be measurable
Be achievable
Be worthwhile
Be positive 

2. Discipline

This is most important part of option trading. In order to realize the full potential of your trading systems it is critical that you take every trading entry, adjust every stop, and close out every trade as and when your system says you should do

3. Never add to a losing trade

Averaging is Options could prove to be very dangerous as there is always time factor.

PANTALOONR STRANGLE STRATEGY

STRANGLE STRATEGY IN PANTALOONR :
BUY PANTALOONR 220 CALL @2 AND PANTALOONR 200 PUT @2.50

FREE OPTION CALL PUT TIPS

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

BOOK PROFIT IN HEROMOTOCO STRATEGY

Our HEROMOTOCO STRANGLE STRATEGY given  is giving profit of RS 24 per lot and contd… to hold. The call  was given @25 is trading at @79 now, put is on hold.

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

BOOK PROFIT IN NIFTY STRANGLE STRATEGY

Our NIFTY STRANGLE STRATEGY ROCKS!!!!!!!!!!!!!!  NIFTY 5400 CALL made a high of  201  yesterday. BOOK PROFIT in NIFTY 5400 CALL  and keep holding NIFTY 5200 PUT. Keep reading for much such rocking strategies….

OPTION STRATEGY:lets learn butterfly strategy in simple terms

Description 

A butterfly strategy is an option strategy using multiple puts and/or calls to make a bet on future volatility without having to guess in which direction the market will move. The long butterfly spread is a three-leg strategy that is appropriate for a neutral forecast when you expect the underlying stock price to change very little over the life of the options.

For example:A long butterfly strategy is constructed from three sets of either puts or calls having the same expiration date but different exercise prices. For example, with the underlying asset trading at 100, a long butterfly strategy can be built by buying puts at 95 and 105, and selling  twice as many puts at 100, same can be done with calls. If the underlying does not change price by expiry, the puts at 95 and 100 will expire worthless, and the puts at 105 will be worth 5 (from 105-100). If the underlying is greater than 105 at expiration, all the puts expire worthless, and the initial cost of the butterfly is the amount of the loss. If the underlying is less than 95 at expiration, the gain from the purchased put at 105 will offset the losses from the shorted puts at 100, and the loss is again limited to the initial cost of initiating the butterfly strategy. In essence, this is a limited-risk, limited-gain approach to shorting the volatility of the underlying, as the maximum profit comes when the underlying has no volatility at all.....

NIFTY STRANGLE STRATEGY

Volatility is back in market. For coming sessions we recommend Nifty strangle strategy:

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5200 PUT @ 55

LEG2: BUY NIFTY 5400 CALL @ 40

COST =95            

 RISK PER LOT = 4750

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=5495

LOWER BREAK GIVEN POINT=5105

TATASTEEL STRANGLE STRATEGY

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

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.

SBI STRANGLE STRATEGY

SBI STRANGLE  STRATEGY

LEG1: BUY SBI 1950  PUT @38

LEG2: BUY SBI 2100 CALL @45

TOTAL RISK  =(38+45)*125=10375

OUT LOOK  5-7 Days.

FUTURE OPTION TIPS FOR 31 JULY 2012

BUY NIFTY FUTURE ABOVE 5140 TG5170, 5200, 5230 SL 5110.

BUY  IDFC FUTURE ABOVE 130 TG 134, 137 SL 126.

SELL INDIACOM FUTURE BELOW 77 TG 76.10, 75.20 SL 78.20

YOU CAN ALSO CHECK  NIFTY TIPS

FUTURE OPTION TIPS FOR 27-07-12

SELL ICICI BANK FUTURE BELOW 915 TG 906,900 SL 925

BUY NIFTY 5200 AUG PUT @ 150 TG 200,220 SL 120

FUTURE OPTION TIPS FOR 26 JULY 2012

NIFTY  STRANGLE  STRATEGY BOOKED @ 100 GIVEN @ 70. FIRST TG ACHIEVED IN LT  @1250 PUT  GIVEN IN LAST POST.

BUY DLF 220 AUG CALL @ 2.70 TG 5.90,7.70 SL 1.50

BUY LT FUTURE ABOVE 1350 TG 1370, 1400 SL 1333.
YOU CAN ALSO CHECK   NIFTY TIPS

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 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

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)

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

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

FUTURE OPTION TIPS FOR 21 JUN 2012

TATASTEEL call given in our NIFTY TIPS made a high of Rs.13.40 today.

BUY NIFTY 5100 CALL ABOVE 75 TG `100 ,125, 140 SL 60

TIP FOR 20 JUN 2012

TIP FOR 20 JUN 2012 

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

FUTURE OPTION TIPS FOR 19 JUN 2012

BUYTATASTEEL 420 CALL @ 9 TG  14, 17, 20

BUY NIFTY FUTURE ABOVE 5080  TG 5110 ,5140,5170 SL 5050 .

SELL CAIRN INDIA FUTURE BELOW 325 TG 315 SL 332

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.......

DLF STRANGLE STRATEGY

Market is eyeing RBI for rate cuts which can have major impact on interest rate sensitive stocks. Dlf has seen consolidation in charts. Betting on huge moves either side in this counter can give a good payoff. We recommend long strangle strategy in DLF with a week’s outlook

DLF STRANGLE STRATEGY

LEG1: BUY DLF 180  PUT @3

LEG2: BUY DLF 210 CALL @3

TOTAL RISK  =(3+3)*1000=6000

OUT LOOK  5-7 Days.

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 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

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

 For Getting Option Tips regularly pls fill free tips form on right side of blog