SBIN OPTION STRATEGY UPDATE

Update of SBI strangle strategy given in post--- SBIN 1800 PUT BOOK PROFIT NEAR 49-50 .

INFY RESULT GOOD OR BAD

No other stock traded on the Indian bourses reacts consistently the way Infosys does. A swing of 8-10% on the result day is normal for the stock.The ‘long strangle’ option strategy (buying an out of the money call and similar number of out of the money puts) is something that most option traders practices on Infosys’ result day. The build of position in the stock is the main reason for the stock movement.
 

This quarter the ‘calls’ have won. Infosys surprised the market by announcing better than expected numbers resulting in the stock shooting over 11%. However, the devil is in the details. While the market has reacted sharply to the numbers, it is the consistency of these numbers that is key for the long term revival of sentiments in the stock....

CURRENCIES MEASURED IN TERMS OF DOLLAR

Currencies always trade in pairs because the value of each currency is measured against that of another currency, yeilding a rate of exchange for the currency pair. The primary reason that most currencies trade in the forex market against the U.S. Dollar goes back to Bretton Woods agreement made near the end of the Second World War.After that devastating global war, the United States was the only major country which emerged relatively strong economically after the costly conflict compared to the other significant nations of the world.Despite proposals for the creation of a neutral global reserve currency called the bancor, pressures prevailed for the U.S. Dollar to be chosen as the world's reserve currency at the Bretton Woods conference held in New Hampshire in 1944, just before the end of the war....

SBI STRANGLE STRATEGY

Buy SBI 2000 call @25

Buy SBI 1800 put @ 21

COST =46    

 RISK PER LOT = 5750

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=2046

LOWER BREAK GIVEN POINT=1734

Pay off table...

Rupee opens flat at 60.11 per dollar

The Indian rupee opened flat at 60.11 per dollar versus 60.13 yesterday. "The rupee could be weak on overnight dollar strengthening. The range for the day is seen between 60.10-60.40.Demand from oil importers and the much expected inflows for the HUL open offer led to rupee volatility yesterday. The rupee could be weak on overnight dollar strengthening.

COMPARISON BETWEEN DERIVATIVE AND EQUITY TRADING

In derivatives trading, traders can hold long or short positions for more than 1 day whereas in equity trading, short sell tradings are supposed to square off before the market closing on the same day. Traders must not carry forward their short positions in any way, denying which results in penalty around 20% in auction market Apart, these tips are divided into indexes and stocks. As said in our previous article, virtual scrips like nifty, bank nifty, cnx IT ect., are called as index stocks where as companies which exist in real are said to be stock scrips....

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.

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  

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....

RELIANCE STRATEGY UPDATE

RELIANCE OPTION STRATEGY 

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