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.

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...

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

LOWER BREAK EVEN POINT=5606

HIGHER BREAK EVEN POINT=5896

STOPLOSS WHEN CUMULATIVE PRICE GOES TO 230

OUTLOOK  FOR 7-9 DAYS

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 

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.

PANTALOONR STRANGLE STRATEGY

STRANGLE STRATEGY IN PANTALOONR :
BUY PANTALOONR 220 CALL @2 AND PANTALOONR 200 PUT @2.50

FREE OPTION CALL PUT TIPS

To get FREE OPTION CALL PUT TIPS please fill the form on right side of your screen

BOOK PROFIT IN HEROMOTOCO STRATEGY

Our HEROMOTOCO STRANGLE STRATEGY given  is giving profit of RS 24 per lot and contd… to hold. The call  was given @25 is trading at @79 now, put is on hold.

HEROMOTOCO STRANGLE STRATEGY

As we have noticed the upward move of the index in past days and we expect this pace to be continued.

We recommend HEROMOTOCO STRATEGY for coming trading sessions.

HEROMOTOCO STRANGLE STRATEGY

LEG1: BUY HEROMOTOCO 1850 CALL @ 25

LEG2: BUY HEROMOTOCO 1850 PUT @ 30

COST =55             

 RISK PER LOT = 6875

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=1905

LOWER BREAK GIVEN POINT=1795

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