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.
Thursday 1 November 2012
Wednesday 31 October 2012
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+
Saturday 27 October 2012
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.
Thursday 25 October 2012
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
Tuesday 23 October 2012
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....
Saturday 20 October 2012
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.
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.
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...
Thursday 11 October 2012
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
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
Saturday 29 September 2012
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
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.
Tuesday 25 September 2012
PANTALOONR STRANGLE STRATEGY
STRANGLE STRATEGY IN PANTALOONR :
BUY PANTALOONR 220 CALL @2 AND PANTALOONR 200 PUT @2.50
BUY PANTALOONR 220 CALL @2 AND PANTALOONR 200 PUT @2.50
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