Wednesday 26 June 2013

OPTION ADJUSTION

Adjusting an option position really is an essential skill for any investor – I would even say it is a mandatory requirement. Properly managing risk by adjusting can help you repair strategies that have gone wrong, limit huge losses or even create additional potential gains As a disclaimer it’s important that you know both HOW to adjust an option trade and that you are aware of the additional broker commissions you will be charged to exit/enter additional contracts. Take your time when adjusting so that you don’t adjust and create an even bigger hole from which to dig out of.
1. What’s the goal?
 Make sure that you are either reducing risk somehow someway or  creating a new strategy that could make you more money.
2. Are you really reducing risk?
Forget for a minute that you are not going to make money if you get into a bad trade.
3. Should you just close out the trade?
This is always one of my 1st considerations. If you’ve made a small profit and things are starting to go south it might be a wise decision to just close out the trade and re-evaluate the market. Don’t let your ego get in the way of making money.
4. How have the market trend  changed?
I’m sure when you entered the trade you had a firm opinion on the market if the trend is changing then is your options strategy structured to profit from the new market Wait to see a medium term change to adjust and remember that 1 day doesn’t make a trend.


Tuesday 25 June 2013

OPTION STRATEGY PACKAGE

We have posted a sample strategy Nifty strangle strategy  on our blog. If you wish to get more such rocking!!!(5-7)  strategies in a month join our option strategies package. The traders having lack of time but interested in trading will love this package which gives LOW RISK HIGH RETURNS.
Price of our OPTION STRATEGY PACKAGE :
Monthly:     5000
Quarterly:   10000
Half yearly: 18000
Yearly :      35000
CONTACT @ 9179333088 FOR DETAILS  

Wednesday 19 June 2013

SHORT STRANGLE STRATEGY

Components
Short one put option with a lower strike price and short one call option at a higher strike price.
Risk / Reward
Maximum Loss: Unlimited as the market moves in either direction.
Maximum Gain: Limited to the net premium received for selling the options....

Tuesday 11 June 2013

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....

Tuesday 4 June 2013

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:...

Thursday 30 May 2013

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

Tuesday 28 May 2013

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....

Tuesday 14 May 2013

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.

Thursday 9 May 2013

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