NIFTY STRAP STRATEGY GIVEN ON 27 DEC 2016

BOOKED BOTH THE CALLS

NIFTY 8050 CALL  1 LOT BOOKED @ 60 (BOUGHT @ 20 )

2ND LOT NIFTY 8050 CALL BOOKED @55 (BOUGHT @ 20)

TOTAL RISK : RETURN 

6000 : 8625 
WE ARE GIVING SOME AMAZING OFFERS ON THE PACKAGES TODAY IS THE LAST DAY FOR THE "OFFER"
TO GET MORE DETAILS PLZ CALL ON 07225909997

NIFTY STRAP STRATEGY UPDATE

BOOK 1 LOT NIFTY 8050 CALL NEAR 60

NIFTY STRAP STRATEGY FOR F & O EXPIRY

"BUY 2 LOT NIFTY 8050 CALL @ 20 AND

 1 LOT 8050 PUT @ 40"

TO GET TGT UPDATE CALL ON 

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IBREALEST STRANGLE STRATEGY DEC 2016

TO GET LIVE MARKET OPTION CALLS FILL UP THE FORM GIVEN HERE>>>>

 "BUY 1 LOT IBREALEST 60 PUT @ .9-1"

"1 LOT IBREALEST 80 CALL @ 1-1.1"

PAY OF TABLE :-

IN TURBULENT TIMES LIKE THIS OPTION IS BEST TOOL

TO GET ROCKING OPTION INTRADAY & POSITIONAL CALLS FILL UP THE FORM GIVEN HERE >>>>>>

What if you do not know which direction a stock will move in, but you have the sense it will move dramatically one way or the other? There is an options strategy for that, too. It is called a strap strategy, which we have given in our last post in that we have booked all the 3 legs in huge profits.

TOTAL RISK: RETURN 
32200: 59500 

More specifically, it is called a long strap strategy - buying 1 put and 2 call option on the same underlying asset, exercise price and expiration date. For more details visit http://optioncallputtradingtips.blogspot.in/2016/11/rocking-option-strap-strategy.html Whether the stock moves one way or the other, the investor profits, but the stock has to move enough to pay off the premiums on both options. Essentially, the investor is betting on volatility. 

ROCKING OPTION STRAP STRATEGY

HINDALCO STRAP STRATEGY GIVEN ON 3 NOV 2016
BOOKED ALL THE LEGS
HINDALCO 175 CALL  1 LOT BOOKED @ 6 (BOUGHT @ 3.3 )
HINDALCO 150 PUT BOOKED @  3.5 (BOUGHT @ 2.6 )
2ND LOT HINDALCO 175 CALL BOOKED @7.5 (BOUGHT @ 3.3 )

TOTAL RISK : RETURN 
32200 : 59500

OPTION STRAP STRATEGY CALL OPTION FOLLOW UP

 BOOK 2ND LOT HINDALCO 175 CALL NEAR 7.4-7.5 .

OPTION STRAP STRATEGY PUT OPTION FOLLOW UP

"BOOK 1 LOT HINDALCO 150 PUT NEAR 3.5"

HOLD 1 CALL NOW

OPTION STRAP STRATEGY CALL OPTION FOLLOW UP

HINDALCO STRAP STRATEGY GIVEN IN LAST POST 

BOOK 1 LOT HINDALCO 175 CALL NEAR CMP.

HOLD 1 CALL AND 1 PUT

OPTION STRAP STRATEGY FOR NOV 2016

"BUY 2 LOTS HINDALCO 175 CALL @ 3.3"
"AND 1 LOT HINDALCO 150 PUT @ 2.55"
FOR TGT UPDATE KEEP READING
PAY OF TABLE -:

NIFTY EXPIRY STRATEGY FOLLOW UP

FOLLOW UP FOR NIFTY STRATEGY GIVEN YESTERDAY 
2 LOTS NIFTY 8600 PUT BOOKED @ 55 (BOUGHT @ 28 ) 
NET PROFIT =(55-28)*2 = 54
NIFTY 8600 CALL WAS EXITED @ COST PRICE 
NET PROFIT = 54 * 75= 4050
RISK  : REWARD
 5250 : 9300

TO GET SUCH ROCKING CALLS FILL UP THE FORM GIVEN HERE >>>>>>>

MAYFLY NIFTY EXPIRY STRATEGY

"BUY 2 LOTS NIFTY 8600 PUT @ 14  AND 1 LOT 8600 CALL @ 28"

FOR BOOKING RATES PLEASE GIVE US A CALL OR MISSED CALL ON 08982086510

PETRONET PLAIN VANILLA STRATEGY FOR OCT 2016

"BUY PETRONET 420 CALL @ 3.2 TG 5.9/8.4"

FOR MORE UPDATES KEEP READING 

SBIN CONDOR STRATEGY FOR OCT 2016

"BUY SBIN 255 CE @ 11"

"SELL SBIN 260 CE @ 8"

"SELL SBIN 265 CE @ 5.8"

"BUY SBIN 270 CE @ 4"

PAY OFF TABLE - :

WANNA TRADE IN MONETARY POLICY???

TO GET THE NIFTY, BANKNIFTY & STOCK OPTION CALL FOR MONETARY POLICY

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FOR MORE DETAILS CALL 08982086510

IN TURBULENT TIMES LIKE THIS OPTION IS BEST TOOL

TO GET ROCKING OPTION INTRADAY & POSITIONAL CALLS FILL UP THE FORM GIVEN HERE >>>>>>

What if you do not know which direction a stock will move in, but you have the sense it will move dramatically one way or the other? There is an options strategy for that, too. It is called a straddle, which we have given day before yesterday for sep 2016 f & o expiry specially on our other blog http://niftytipsniftylevels.blogspot.in/2016/09/straddle-strategy-for-nifty-expiry.html & exactly market moved on our word & we have booked it in huge profit. 

More specifically, it is called a long straddle - buying a put and a call on the same underlying asset, exercise price and expiration date. Whether the stock moves one way or the other, the investor profits, but the stock has to move enough to pay off the premiums on both options. Essentially, the investor is betting on volatility. 

DEAD TILL THE FED - WAIT FOR THE REACTION AND KEEP OVERNIGHTS TO A MINIMUM

To get options  less risky & properly hedged calls fill up the form given here>>>>>

The market tried to rally today and when buyers ran out of gas the downside was tested. Trading volumes were low and we can expect the same tomorrow. We are “dead till the Fed”.Best option is to trade in option call & put with properly hedged calls. No one is expecting a rate hike tomorrow, but hawkish comments could pave the way for a December increase. If this pans out, the market will not like the tone and we are likely to breach the 100-day moving average. September is typically a weak month and we could even test the 200-day moving average. If the rhetoric is more benign, the market is likely to rally.

HOW TO TRADE IN INDEX OPTIONS

An index option is the same as equity or stock option, except the underlying asset is an index instead of a stock. Just like an equity call option, an index call option is the right to buy the underlying index. And just like equity put option, an index put option is the right to sell the underlying index.

In other words, an index option is a security that allows the owner to buy or sell an index at a specified price by a specified date. It is an "option" because the owner does not "have to" exercise the option, but rather decides based on the price of the underlying if they want to exercise it. Index options are defined by the following 4 characteristics:

• There is an underlying index
• There is an expiration date of the option
• There is a strike price of the option
• The option is either the right to buy or the right to sell (call and put, respectively)

The difference between calls and puts is the owner of an index call option has the right to BUY an index at a certain price. The owner of a put option has the right to SELL an index at a certain price.

FUTURE OPTION HEDGING STRATEGY

BUY 1 LOT RCOM FUTURE @ 54.6 & 
BUY 1 LOT RCOM  55 PUT @ 3
KEEP READING FOR MORE UPDATES
TO SUBSCRIBE THIS PACKAGE CALLS US 08982086510

FUTURE OPTION HEDGING STRATEGY UPDATE

LEG 1 RELINFRA FUTUREBOOK PROFIT NEAR 612

PROFIT FROM FUTURE 15600
LOSS FROM PUT 7800
NET PROFIT 7800 IN JUST 1 DAY WITH LOW RISK OF 7800

WE HAVE LAUNCHED NEW PACKAGE OF FUTURE OPTION HEDGING STRATEGY TO KNOW MORE UPDATE ABOUT THIS PACKAGE CONTACT 08982086510 

FUTURE OPTION HEDGING STRATEGY

Leg 1  Buy Relinfra Future @600

Leg 2 Buy Relinfra 600 put@6

 For more update keep reading

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OPTION STRATEGY AUG 2016: NIFTY LONG STRADDLE

 " BUY 1 LOT NIFTY 8700 CALL @ 142" 
AND  
"NIFTY 8700 PUT @ 110"
FOR TGT UPDATE KEEP READING 

TATASTEEL STRAP STRATEGY ROCKS!!! GOOD PROFIT ONLY FROM CALL

TATASTEEL STRATEGY UPDATE
Total cost=19.5
BOOKED 2 LOTS OF  TATASTEEL 350 CALL @16.5
Total return from call  =(33-11.6=13.5) i.e.42800
Put contd... to hold

STRAP OPTION STRATEGY BOOK PROFIT

TATASTEEL 350 CALL BOOK BOTH THE LOT @ 16-16.5

CONTINUE TO HOLD PUT 

STRAP OPTION STRATEGY FOR JULY'2016

"BUY 2 LOTS TATASTEEL 350 CALL@ 5.80" 

&

"BUY 1 LOT TATASTEEL 330 PUT@ 7.90"
Pay off Table

Strike Price	Call Option Price	Strike Price	Call Option Price	Closing price	Return from call	return from put	gross return	payoff
350	5.8	330	7.9	300	0	60000	60000	16605
350	5.8	330	7.9	305	0	50000	50000	6605
350	5.8	330	7.9	310	0	40000	40000	-3395
350	5.8	330	7.9	315	0	30000	30000	-13395
350	5.8	330	7.9	320	0	20000	20000	-23395
350	5.8	330	7.9	325	0	10000	10000	-33395
350	5.8	330	7.9	330	0	0	0	-43395
350	5.8	330	7.9	335	0	0	0	-43395
350	5.8	330	7.9	340	0	0	0	-43395
350	5.8	330	7.9	345	0	0	0	-43395
350	5.8	330	7.9	350	0	0	0	-43395
350	5.8	330	7.9	355	20000	0	20000	-23395
350	5.8	330	7.9	360	40000	0	40000	-3395
350	5.8	330	7.9	365	60000	0	60000	16605
350	5.8	330	7.9	370	80000	0	80000	36605
350	5.8	330	7.9	375	100000	0	100000	56605
350	5.8	330	7.9	380	120000	0	120000	76605
350	5.8	330	7.9	385	140000	0	140000	96605
350	5.8	330	7.9	390	160000	0	160000	116605
350	5.8	330	7.9	395	180000	0	180000	136605
350	5.8	330	7.9	400	200000	0	200000	156605

STRAP OPTION STRATEGY FOR JULY'2016

"BUY 2 LOTS TATASTEEL 350 CALL@ 5.80" 

&

"BUY 1 LOT TATASTEEL 330 PUT@ 7.90"

TIMING IS ESSENCE WHEN BUYING CALL OPTION

Timing is of great essence in the stock market. Same applies to the derivatives market too, especially since you have multiple options. So when do you buy a call option?
To maximize profits, you buy at lows and sell at highs. A call option helps you fix the buying price. This indicates you are expecting a possible rise in the price of the underlying assets. So, you would rather protect yourself by paying a small premium than make losses by shelling a greater amount in the future.

You thus anticipate a rise in the stock markets, i.e., when market conditions are bullish.

Timing is of great essence in the stock market. Same applies to the derivatives market too, especially since you have multiple options. So when do you buy a call option?

To maximize profits, you buy at lows and sell at highs. A call option helps you fix the buying price. This indicates you are expecting a possible rise in the price of the underlying assets. So, you would rather protect yourself by paying a small premium than make losses by shelling a greater amount in the future.

You thus anticipate a rise in the stock markets, i.e., when market conditions are bullish.

BANKNIFTY WEEKELY EXPIRY STRANGLE STRATEGY

BUY 1 LOT
"BANKNIFTY 17800 9 JUN CALL@ 110"
"BANKNIFTY 17400 9 JUN PUT@ 107"
KEEP READING FOR TARGET UPDATES...

RELIANCE COMBO STRATEGY UPDATE

"RELIANCE FUTURE BOOK PROFIT 990"
KEEP READING FOR NEXT UPDATE

RELIANCE FUTURE & OPTION COMBO STRATEGY FOR JUNE'2016

"BUY 1 LOT RELIANCE FUTURE @ 970"

"1 LOT RELIANCE 960 PUT @ 19 "

"1 LOT RELIANCE 980 CALL @ 21"

FOR FURTHER UPDATES KEEP READING....

HINDALCO FUTURE & OPTION COMBO STRATEGY PROFIT BOOKING

HINDALCO FUTURE OPTION STRATEGY GIVEN IN LAST POST
"BOOK HINDALCO FUTURE @ 89"
"BOOK HINDALCO 92.5 PUT NEAR 6"
 CONTINUE TO HOLD CALL

FUTURE & OPTION COMBO STRATEGY FOR MAY'2016

"SELL HINDALCO FUTURE @ 92.5" 

"BUY HINDALCO 92.5 CALL @ 4"

"BUY HINDALCO 92.5 PUT @ 4"

FOR TGT UPDATES KEEP READING...

PALIN VANILA OPTION 2 STEP STRATEGY

"BUY 2 LOTS TATAMOTORS 420 CALL @ 5 "

FOR TGT UPDATE KEEP READING....

OBLIGATIONS OF AN OPTION SELLER

UNDERSTANDING ASSIGNMENT RISK

Option sellers collect a cash premium. That's the primary reason that investors sell an option. When that option expires worthless, the cash premium represents the option seller's profit, but it does involve some risk of losing money. Pretty simple stuff.

Similarly, traders may sell an option as part of a spread position. Once again, collecting a cash premium drives the sale. However, this time, the cash collected is used as a hedge, or a trade that offsets the risk of owning another position. Hedging is a bit more complex than simply selling an option. For example, when you buy one call option (hoping for the stock to rally), you can sell a different option, collect some cash, and reduce the sum of money at risk -- just in case your expected rally does not occur. The concept is easy to understand once you learn to understand how options work.) About options for beginners will help.

Options do not always expire worthless, and it is essential that every option trader understands what happens when the option does not expire worthless.

Whenever you sell (write) an option that you do not already own, you become legally obligated to honor the terms of the option contract sold.

WHAT ARE THOSE OBLIGATIONS?

The call seller agrees to sell 100 shares of the underlying stock to the call owner. The trade occurs at the option strike price.  This obligation remains in effect until the option expires.

The put seller agrees to buy 100 shares of the underlying stock from the put owner. The trade occurs at the option strike price.  This obligation remains in effect until the option expires.

 WHAT TRIGGERS THE OBLIGATIONS?

The obligations are only theoretical until something happens that triggers the process. Call owners have the right to force the option seller to honor his/her obligations by exercising those rights. As soon as the call owner instructs his/her broker to exercise, the option seller's obligations are triggered.  Note that the option seller cannot force the option owner to exercise. That decision rests entirely with the option owner who bought the option and paid cash to own the right to exercise.

NIFTY STRADDLE STRATEGY PROFIT BOOKING

NIFTY STRADDLE STRATEGY GIVEN ON APRIL 09, 2016

"NIFTY 7550 CALL BOOK PROFIT NEAR 220 CALL GIVEN @110"

CONTINUE TO HOLD 7550 PUT OPTION

TO GET SUCH STRATEGIES ON UR MOBILE PLZ FILL THE FORM GIVEN HERE>>>>>

NIFTY STRADDLE STRATEGY FOR APRIL 2016

"BUY1 LOT NIFTY 7550 CALL @ 110"
"BUY 1 LOT NIFTY 7550 PUT @79"
TOTAL INVESTMENT 14175
PAY OF TABLE :-

IS COVERED CALL WRITING FOR YOU?

ONE BASIC STRATEGY
Covered call writing is a very popular option strategy and is especially well suited for people who are first learning how options work. Once you gain a fairly good understanding of the basic concepts involving options and understand the risk and rewards associated with owning stocks, that is a good time to consider adopting this strategy.
However, there is more to this simple strategy that is apparent at first glance. It is important to understand why an investor would want to write covered calls. Thus, you want to know about the philosophy. Next it is essential to know about the risk, or what can go wrong when you buy stock and sell one call option for each 100 shares owned.
NOTE: The name of the strategy comes from the fact that the stock owner is covered -- if and when he/she is ever assigned an exercise notice on the short call option. In other words, if assigned, the trader already owns the shares and can deliver (sell) them to the person who exercised the option.
IS COVERED CALL WRITING (CCW) FOR YOU?
·         CCW is a strategy for the investor who does not believing in trying to time the market. As long as you are willing to have your cash invested in the specific stock (or index), it is a reasonable idea to own the stock and write the calls. However, if you never want to sell the stock and if your intention is to hold for a long time, then this is not a suitable strategy.
·         CCW is for the investor who wants a higher probability of earning a profit with every trade, even when the profit is limited. Clarification: The profit is earned more frequently than the trader who simply buys stock and does not hedge the position by selling a call option.

WHAT IS RISK?

DEFINING RISK FOR TRADERS

Options were designed as risk-reducing tools, yet most people begin trading options by adopting high-risk strategies.

Why does that happen?

·         Overconfidence. Traders tend to concentrate on profits and ignore the chance of losing money.

·         Some strategies "feel" safe. When investing a small sum, traders ignore the fact that they will lose money at least 90% of the time.

·         It is easy to forget that a string of small losses adds up.

·         Traders do not look at risk in enough detail.

DEFINING RISK

The term "risk" can be defined from different points of view:

A dictionary tells us that risk is 

·         A situation involving exposure to danger. For traders, that danger is a monetary loss.

·         The possibility that something bad or unpleasant (such as an injury or a loss) will happen.

·         The potential of losing something of value, compared with the potential to gain something of value. 

As a trader, I recommend using the last definition because it forces you to consider what you have to gain and compare it with what you have to lose.

In other words, do not make a trade when risk is too high for the potential gain.

INTRODUCTION TO CALENDAR SPREADS

TIME SPREADS

DEFINITION: A calendar spread is a position with two options; buy one option and sell another. Both options are calls or both are puts, with the same underlying asset and strike price, but different expiration dates.  Buying the option that expires later, is BUYING the calendar spread.  Buying the option that expires earlier, is SELLING the calendar spread. Traders almost always buy calendars because the margin requirement is steep for sellers (For margin considerations, the short option is considered to be naked, or unhedged). 

At one time, it was common to refer to calendar spreads as 'time spreads.'

Example 

     Buy 10 IBM Jul 18 '14 100 calls
     Sell 10 IBM Jun 20 '14 100 calls

The calendar is commonly used when the trader believes that the:

·         Underlying stock will be priced near the strike price at, or near, expiration. 

·         Implied volatility of the longer-term option will increase over the lifetime of the trade.

Note: The options do not have to expire in consecutive weeks or months.

The distance between expiration dates is immaterial; the only requirements for a calendar spread are that the underlying asset and strike price are identical.

How does the calendar earn a profit? 

The calendar spread takes advantage of the fact that options with shorter lifetimes decay more quickly than options with longer lifetimes. Thus, all else being equal, as time passes both options lose value, but the spread value increases.

The world is not quite that simple.  If the rate of time decay were the only factor, calendars would be profitable almost all the time.  Other factors affect the calendar spread. The two primary factors are:

1. STOCK PRICE. The calendar reaches is highest value when the underlying stock is priced exactly at the strike price as expiration arrives. The data in the table below illustrates the point.

ASSUMPTIONS: IBM is $XXX per share; date: Jun 18, 2014, 4:00 PM ET;  Implied Volatility is 45.

NOTE: When IBM is $100 or less, the Jun 100 call expires worthless and the value of the Jul 100 call is the value of the calendar spread.

When IBM is above $100, the Jun call is in the money.  For the values in the table, assume that the IBM Jun 100 call is bought at parity (the option's intrinsic value, or the amount by which it's in the money) and the IBM Jul 100 call is sold at it's value.

 

IBM Price	88	92	96	100	104	108	112
Jun 100	$0.00	$0.00	$0.00	$0.00	$4.00	$8.00	$12.00
Jul 100	$0.93	$1.80	$3.13	$4.97	$7.32	$10.13	$13.31
Spread	$0.93	$1.80	$3.13	$4.97	$3.32	$2.13	$1.31

 Look at the data in the bottom row.  The value of the spread is highest when the stock is near the strike price and steadily decreases as the stock moves away from the strike in either direction.