Neutral options trading strategies are employed when the options
trader does not know whether the underlying stock price will rise or fall. Also known as non-directional strategies,
they are so named because the potential to profit does not depend on whether
the underlying stock price will go upwards or downwards. Rather, the correct
neutral strategy to employ depends on the expected volatility of the underlying
stock price....
Thursday, 31 October 2013
Monday, 21 October 2013
Thursday, 10 October 2013
RELIANCE STRANGLE STRATEGY
BUY RELIANCE 840 PUT
@ 14
BUY RELIANCE 900 CALL @14
COST=28
RISK PER LOT=7000
RETURN= UNLIMITED
UPPER BREAK EVEN POINT=928
LOWER BREAK EVEN POINT=812
Pay off table:...
Wednesday, 9 October 2013
STOCK TRADING AND BEST STOCK ADVISORY SERVICE
Are
you worried about the falling prices in stocks Then you should not worry as you need to know how to get profit from a falling
stock. Everybody has a different concept when it comes to
making money in the stock market.
One of the most common strategies to make money is to buy shares when the price
is low and selling them at a high price when it rises. This is known as stock trading.
Get A Good
Survey From The Market
Know About
Different Concepts
Buy And Sell
Stocks
Tuesday, 24 September 2013
DLF STRANGLE STRATEGY
Buy DLF 125 OCT put @6
Buy DLF 160 OCT call @ 6
COST =12
RISK PER LOT =
13000
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=172
LOWER BREAK GIVEN POINT=113..
Saturday, 21 September 2013
HOW TO TRADE IN OPTION NEAR EXPIRY
Theta changes at
an exponential rate. In English, that means that the time value of any options
you’re holding will decay more quickly the closer those options are to
expiration. If you’re an option buyer, that means you want the move in the
underlying to happen sooner rather than later, because even if you’re right
about the direction of an underlying, those long calls you bought last month
might still be losers even if your stock makes a big move today, because once
you’re close to expiration there will be very little time premium left in those
calls....
Thursday, 5 September 2013
LONG BUTTERFLY STRATEGY
Short two calls at the middle strike, and long one call each
at the lower and upper strike. The upper and lower strikes (wings) must
both be equidistant from the middle strike (body), and all the options must be
the same expiration.
Max
Loss
The maximum loss would occur should the underlying stock be
outside the wings at expiration.
Max
Gain
The maximum profit would occur should the underlying stock
be at the middle strike at expiration.
Profit/Loss
The potential profit and loss are both very limited. In
essence, a butterfly at expiration has a minimum value of zero and a maximum
value equal to the distance between either wing and the body. An investor
who buys a butterfly pays a premium somewhere between the minimum and maximum
value, and profits if the butterfly's value moves toward the maximum as
expiration approaches.....
Thursday, 29 August 2013
RELIANCE STRANGLE STRATEGY UPDATE
We have booked 820 put @ 48 earlier and booked 840 call @ 9.30 today. So net profit of 6875 is made in this strategy .Hope you have booked this strategy.
Thursday, 22 August 2013
BOOK PROFIT IN RELIANCE STRATEGY
RELIANCE STRANGLE STRATEGY UPDATE:
Reliance 820 put book profit near 47-48.
Reliance 820 put book profit near 47-48.
Saturday, 17 August 2013
RELIANCE STRANGLE STRATEGY
Buy Reliance 820 put @ 15
Buy Reliance 840 call @ 15
Cost=30
Risk per lot =7500
Return=Unlimited
Upper break given point=870
Lower break given point=790
Pay off table....
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