BOOK PROFIT IN NIFTY STRANGLE STRATEGY

Our NIFTY STRANGLE STRATEGY ROCKS!!!!!!!!!!!!!!  NIFTY 5400 CALL made a high of  201  yesterday. BOOK PROFIT in NIFTY 5400 CALL  and keep holding NIFTY 5200 PUT. Keep reading for much such rocking strategies….

OPTION STRATEGY:lets learn butterfly strategy in simple terms

Description 

A butterfly strategy is an option strategy using multiple puts and/or calls to make a bet on future volatility without having to guess in which direction the market will move. The long butterfly spread is a three-leg strategy that is appropriate for a neutral forecast when you expect the underlying stock price to change very little over the life of the options.

For example:A long butterfly strategy is constructed from three sets of either puts or calls having the same expiration date but different exercise prices. For example, with the underlying asset trading at 100, a long butterfly strategy can be built by buying puts at 95 and 105, and selling  twice as many puts at 100, same can be done with calls. If the underlying does not change price by expiry, the puts at 95 and 100 will expire worthless, and the puts at 105 will be worth 5 (from 105-100). If the underlying is greater than 105 at expiration, all the puts expire worthless, and the initial cost of the butterfly is the amount of the loss. If the underlying is less than 95 at expiration, the gain from the purchased put at 105 will offset the losses from the shorted puts at 100, and the loss is again limited to the initial cost of initiating the butterfly strategy. In essence, this is a limited-risk, limited-gain approach to shorting the volatility of the underlying, as the maximum profit comes when the underlying has no volatility at all.....

NIFTY STRANGLE STRATEGY

Volatility is back in market. For coming sessions we recommend Nifty strangle strategy:

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5200 PUT @ 55

LEG2: BUY NIFTY 5400 CALL @ 40

COST =95            

 RISK PER LOT = 4750

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=5495

LOWER BREAK GIVEN POINT=5105

TATASTEEL STRANGLE STRATEGY

 Our Tatasteel  strangle strategy given in post is giving the profit of Rs 4, contd. to hold....

TATASTEEL SHORT STRANGLE STRATEGY

FRIDAY  being a shy day for the market ,followed by a close of 3 days we are giving a short strangle strategy. This strategy is aiming to encash option time value.

SELL TATASTEEL 400 CALL @9

SELL TATASTEEL 400 PUT   @9

TOTAL RETURN=(9+9)*500=9000

FUTURE OPTION TIPS FOR 10 AUG 2012

The SBI 1950 PUT made a high of 63 today, Book profit near Rs. 70 and SBI 2100 CALL  still contd... to hold.

BUY ITC 270 CALL @3.20 TG 4.90 ,6.50 SL 2.

SBI STRANGLE STRATEGY

SBI STRANGLE  STRATEGY

LEG1: BUY SBI 1950  PUT @38

LEG2: BUY SBI 2100 CALL @45

TOTAL RISK  =(38+45)*125=10375

OUT LOOK  5-7 Days.

FUTURE OPTION TIPS FOR 31 JULY 2012

BUY NIFTY FUTURE ABOVE 5140 TG5170, 5200, 5230 SL 5110.

BUY  IDFC FUTURE ABOVE 130 TG 134, 137 SL 126.

SELL INDIACOM FUTURE BELOW 77 TG 76.10, 75.20 SL 78.20

YOU CAN ALSO CHECK  NIFTY TIPS

FUTURE OPTION TIPS FOR 27-07-12

SELL ICICI BANK FUTURE BELOW 915 TG 906,900 SL 925

BUY NIFTY 5200 AUG PUT @ 150 TG 200,220 SL 120

FUTURE OPTION TIPS FOR 26 JULY 2012

NIFTY  STRANGLE  STRATEGY BOOKED @ 100 GIVEN @ 70. FIRST TG ACHIEVED IN LT  @1250 PUT  GIVEN IN LAST POST.

BUY DLF 220 AUG CALL @ 2.70 TG 5.90,7.70 SL 1.50

BUY LT FUTURE ABOVE 1350 TG 1370, 1400 SL 1333.
YOU CAN ALSO CHECK   NIFTY TIPS