HOW TO CHOOSE A STOCK BROKER

A stock broker is a person who takes care of your investments and act as a mediator by selling and buying the shares/stocks you want. Whenever you want to buy or sell your stocks you have to put it in front of a stockbroker and hence, from there on the stockbroker takes care of the matter by following your order and placing them in the market.....

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 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.
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More about Option Call Put tips on google+

WHAT IS PUT OPTION

What is PUT OPTION

If you think a stock price is going to go down, then there are 3 trades that you can make to profit from a rising stock price: 

1. you can sell the stock
2. you can buy put options on the stock, or
3. you can write call options on the stock

Selling stock  huge capital investment i.e.your total capital is @ risk plus u need to cover it cover intraday or supply delivery

Writing call option also need huge margin and risk associated with it is unlimited

Buying put option give u unlimited profit upside and limited risk downside.

Only enemy of put option is time so u should book your profits as early as possible.

Let’s understand using an example. Suppose, today’s date is 25-APR-2012 and you BUY a RELIANCE PUT option (strike=700, EXPIRY  MAY 31) @ Rs. 10  per contract when RELIANCE stock was getting traded at 740. Let’s see what happens after options expiration.

Case I : Reliance stock price greater than the strike price  on expiry day cut-off time

Net loss = Premium paid = Rs. 10 per contract

Case II : Reliance stock price less than strike price (700) on expiry day cut-off time i.e. 640

Net profit = (current price – strike price) - premium = (700-640 ) -10= Rs. 50 per contract

So when you buy a put option you have unlimited profit potential but limited risk or downside.

NIFTY SHORT STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

NIFTY has been trading around 5400 levels for quite some time. We expect it to continue for some more time.

We suggest SHORT STRANGLE STRATEGY for Monday

Nifty SHORT STRANGLE STRATEGY

LEG1: SELL NIFTY  APR 5100 PUT @ 64

LEG2: SELL NIFTY APR 5500 CALL @ 64

CREDIT RECD =(64+64)*50= 6400

OUTLOOK : 5-7 DAYS

CONTINUE TO HOLD WITH SL OF 50 POINTS EITHER SIDE.

Nifty Short Strangle Strategy

Nifty has been in narrow range for some time. We expect it to continue doing so till budget session and forthcoming election outcome.

Nifty short strangle is our pick for coming week

Sell Nifty 5200 put @ 85

Sell Nifty 5600 call @ 67

Total Return  =(85+67)*50=7600

Lower Break Even Point=5048

Higher Break even Point=5752

KEEP SL Of 50 points

Time Frame =7-10 Days

  

BOOK PROFIT IN NIFTY STRANGLE

Nifty Strangle strategy rocks !!!! Book profit ...Book nifty 5400 call @ 200
Total cost Rs 140.