BULLISH TRADING STRATEGIES

Bullish Trading Strategies

Bullish strategies in options trading are employed when the options trader expects the underlying stock price to move upwards. It is necessary to assess how high the stock price can go and the timeframe in which the rally will occur in order to select the optimum trading strategy. 

Very Bullish

The most bullish of options trading strategies is the simple call buying strategy used by most novice options traders.

Moderately Bullish

In most cases, stocks seldom go up by leaps and bounds. Moderately bullish options trader usually set a target price for the Bull Run and utilizes bull spreads to reduce risk. While maximum profit is capped for these strategies, they usually cost less to employ.

Mildly Bullish

Mildly bullish trading strategies are options strategies that make money as long as the   underlying stock price does not go down on options expiration date. These strategies usually provide a small downside protection as well. Writing out-of-the-money covered calls is one example of such a strategy.

 

 

 

OPTION STEATGEY : BULL CALL SPREAD

Bull Call Spread

• In a bull call spread strategy; an investor will simultaneously buy call options at a specific strike price and sell the same number of calls at a higher strike price. Both call options will have the same expiration month and underlying asset. This type of strategy is often used when an investor is bullish and expects a moderate rise in the price of the underlying asset.
  

  

  
  

• Bull call spreads can be implemented by buying an at-the-money call option while simultaneously writing a higher striking out-of-the-money call option of the same underlying security and the same expiration month.
  

OPTION CALLS TYPE

Short-Term Call Options

When an option trader buys a call option, trader has the right to buy the underlying at strike price before expiration. Keep in mind that just because the option trader has the right to buy the stock, doesn’t mean that trader has to necessarily do so. The call option just like a put option can be sold anytime up until expiration for a profit or loss

Bull Call Spreads

When implementing a bull call spread, an option trader purchases a call option at one strike and sells the same number of calls on the same stock at a higher strike with the same expiration date.

By implementing a bull call spread, traders can hedge their bets limiting the potential loss. This is the advantage when comparing to purchasing a call outright. Remember that there are no sure-fire ways to make money by using options. However, knowing and understanding the strategy is a good way to limit losses.

Long-Term Call Options

The long call option strategy is the most basic option trading strategy whereby the options trader buys call options with the belief that the price of the underlying security will rise significantly beyond the strike price before the option expiration date.

HOW TO TRADE IN OPTION CALL & PUT

Definition of option

The right, but not the obligation, to buy or sell specific amount of a given stock,  index, at a specified price  during a specified period of time.

The price of the option depends on the price of the underlying, plus a risk premium.

Medium of exchange for options contracts allowing the holder the right to sell or buy an underlying commodity on an open market. The option contracts define the trading limitations of the market, including the option type and the expiration date.

Options are derivatives, which mean their value is derived from the value of an underlying investment. Most frequently the underlying investment on which an option is based is the equity shares in a publicly listed company. Options are traded on securities marketplaces among institutional investors, individual investors, and professional traders and trades can be for one contract or for many. Fractional contracts are not traded.

PAIN VANILLA SAIL OPTION STRATEGY

OPTION STRATEGY:  BUY SAIL 60 CALL @ 1.8

TOTAL INVESTMENT=7200

Butterfly Spread

All the strategies up to this point have required a combination of two different positions or contracts. In a butterfly spread options strategy, an investor will combine both a bull spread strategy and a bear spread strategy, and use three different strike prices. For example, one type of butterfly spread involves purchasing one call (put) option at the lowest (highest) strike price, while selling two call (put) options at a higher (lower) strike price, and then one last call (put) option at an even higher (lower) strike price.

COVERED LONG HEDGE WITH OPTION STRATEGY

Today we offer you Sbin Long Future strategy covered with long Put.In light of expected RBI policy we believe this strategy will give you high upside potential with limited down side risk.
You buy stock because you’re bullish and expect the stock's price to go up. Since you’re bullish, chances are you aren’t too preoccupied with the downside. But as we all know, markets can shift quickly. Puts are a handy tool to help lock in profits on your existing positions in the event of a sudden reversal. This is the strategy which is ideal in this case.  
1ST LEG 

"Buy SBIN Future Jun @ 280"

2ND LEG

"Buy SBIN Jun 280 Put @ 10"

REL INFRA CALL ROCK..!!!!!!!! ACHIEVED 1ST TGT

REL INFRA CALLS GIVEN IN LAST POST ROCKS..!!!! ACHIEVED 1^ST TGT... PROFIT PER LOT IS 9000.....

FOR MORE ROCKING CALLS KEEP READING & FILL-UP THE FORM GIVEN HERE>>>>>>>

OPTION (CALL & PUT) FREE CALLS FOR MONDAY 18 MAY 2015

BUY VEDL 200 PUT @ 2.80 TGT 4.90/6.70 SL 1.20

BUY REL INFRA 440 CALL @ 8.40 TGT 12.90/16.40 SL 5.2

FOR MORE CALL FILL UP THE FORM GIVEN HERE >>>>>>>>

The calendar spread refers to a family of spreads involving options of the same underlying stock, same strike prices, but different expiration months. They can be created with either all calls or all puts.  Also known as time spread or horizontal spread.

Call Calendar Spread

Using calls, the calendar spread strategy can be setup by buying long term calls and simultaneously writing an equal number of near-month at-the-money or slightly out-of-the-money calls of the same underlying security with the same strike price.

The idea behind the calendar spread is to sell time, which is why calendar spreads are also known as time spreads. The options trader hopes that price of the underlying remains unchanged at expiration of the near month options so that they expire worthless. As the time decay of near month options is at a faster rate than longer term options, his long term options still retain much of their value. The options trader can then either own the longer term calls for less or write some more calls and repeat the process.

BANKNIFTY OPTION STRANGLE STRATEGY

BUY BANKNIFTY 17000 PUT @ 118

BUY  BANKNIFTY 18500 CALL @ 145

COST=263

TOTAL RISK  = 6575

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=18763

LOWER BREAK GIVEN POINT=16737

Pay off table: