Friday 15 May 2015

OPTION (CALL & PUT) FREE CALLS FOR MONDAY 18 MAY 2015

BUY VEDL 200 PUT @ 2.80 TGT 4.90/6.70 SL 1.20
BUY REL INFRA 440 CALL @ 8.40 TGT 12.90/16.40 SL 5.2
FOR MORE CALL FILL UP THE FORM GIVEN HERE >>>>>>>>
The calendar spread refers to a family of spreads involving options of the same underlying stock, same strike prices, but different expiration months. They can be created with either all calls or all puts.  Also known as time spread or horizontal spread.
Call Calendar Spread
Using calls, the calendar spread strategy can be setup by buying long term calls and simultaneously writing an equal number of near-month at-the-money or slightly out-of-the-money calls of the same underlying security with the same strike price.
The idea behind the calendar spread is to sell time, which is why calendar spreads are also known as time spreads. The options trader hopes that price of the underlying remains unchanged at expiration of the near month options so that they expire worthless. As the time decay of near month options is at a faster rate than longer term options, his long term options still retain much of their value. The options trader can then either own the longer term calls for less or write some more calls and repeat the process.

Tuesday 12 May 2015

BANKNIFTY OPTION STRANGLE STRATEGY

BUY BANKNIFTY 17000 PUT @ 118
BUY  BANKNIFTY 18500 CALL @ 145
COST=263
TOTAL RISK  = 6575
RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=18763

LOWER BREAK GIVEN POINT=16737
Pay off table: