Friday, 13 June 2014

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.

Monday, 9 June 2014

UNITECH STRANGLE STRATEGY ROCKS....!!!!BOOK PROFIT

Book profit in Unitech 40 Call near 2 contd... to hold the put
Total profit =10200 from the strategy. 
Hope you have booked profit.