RELIANCE STRATEGY UPDATE

RELIANCE OPTION STRATEGY 

Book CALL @ 27-28 and PUT contd… to hold. 

LONG STRANGLE STRATEGY

Components

Long one put option with a lower strike price and long one call option at a higher strike price.

Risk / Reward

Maximum Loss: Limited to the total premium paid for the call and put options.

Maximum Gain: Unlimited as the market moves in either direction.

Characteristics

When to use: When you are bullish on volatility but are unsure of market direction....

RELIANCE STRANGLE STRATEGY

BUY RELIANCE 820 CALL @11

BUY RELIANCE 760 PUT @11

COST =22     

 RISK PER LOT = 5500

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=842

LOWER BREAK GIVEN POINT=738

PAY OFF TABLE:...

NIFTY SHORT STRANGLE STRATEGY

SELL NIFTY 6000 PUT  @54

SELL NIFTY 6200 CALL @59

TOTAL RETURN=(54+59)*50= 5650

LOWER BREAK EVEN POINT=6141

HIGHER BREAK EVEN POINT=6054

OUTLOOK  FOR 7-9 DAYS

ADVANTAGES AND DISADVANTAGES OF ONLINE AND OFFLINE TRADING

The introduction of the Internet has surprisingly changed our way of life as a society. It has defined the way we do business and the way we correspond. The Internet has opened many opportunities for online trading. The financial industry revolves around the Internet. Every thing is just a few clicks away. This makes online trading most convenient. But there are still investors who prefer the old fashion way of offline trading and they mainly prefer offline trading for security reasons. Of course, online trading has many pros. There are several wonderful reasons to invest online and consider online trading.

1. Money saving opportunities
The amount of money you save depends primarily on the online brokerage firm that you choose. 2. Instant online access –One can gain instant access to your account, the value of your portfolio updates immediately before your eyes....

Features of Offline trading:

 1.Call or visit the broking firm and trade.

2.Transfer funds online as well as via cheque

3.Shares can be transferred online if account is with same broker else can deliver   manually too.

4.Trading limits can be flexible depending on the relationship with the broker.

5.Can’t view real time quotes, would have to depend on the dealer.

6.Tele-confirmation of trades.

7.Contract notes can be viewed online as well as can be received offline via courier

8.Accounts, balances, portfolio etc can be viewed online as well as on request can be received via courier.

9.Higher brokerage/commission costs.

BOOK PROFIT IN SBI STRANGLE STRATEGY

SBI strangle strategy given in post  gives good return….

We have  booked put at 70 and call at 44.

Total return=14250 i.e.  there is net profit of  3750 .

Hope you have booked profit

Benefits of Online trading:

 1.Trade from almost anywhere.

2.Transfer funds online from anywhere.

3.Shares are transferred to and fro online. (as compulsory one has to open a demat account with the same broker he wants to trade online with)

4.Can trade only to the extent of credit in the trading account.

5.Absolutely Real time stock quotes....

WHAT IS INFLATION

Inflation is defined as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase in the average level of prices in Goods and services. Inflation happens when there are less Goods and more buyers, this will result in increase in the price of Goods, since there is more demand and less supply of the goods.

Inflation causes increase of Interest

Inflation can be recognized as a combination of 4 factors :....

A SYNTHETIC SHORT PUT

A synthetic short put is created when long stock position is combined with a short call of the same series. It is so named because the established position has the same profit potential a short put.

The covered call is a popular example of a synthetic short put.

 When to Use

1.In bearish momentum  but want limited risk.......