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
Monday, 24 September 2012
FREE OPTION CALL PUT TIPS
To get FREE
OPTION CALL PUT TIPS please fill the form on right side of your screen
Friday, 21 September 2012
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.
Saturday, 15 September 2012
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
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