NIFTY TRADING TIPS: STRADDLE STRATEGY FOLLOW-UP

NIFTY STRADDLE STRATEGY GIVEN ON 24 APRIL 2017

 "BOOK PROFIT IN NIFTY 9200 CALL  NEAR 150"

NIFTY TRADING TIPS: STRADDLE STRATEGY FOR EXPIRY APRIL 2017

NIFTY TRADING TIPS: STRADDLE STRATEGY FOR EXPIRY APRIL 2017

Time to expiration and cost of the option-these are the two factors every options trader struggles with and has to balance. Close to expiration, it's difficult to get the kind of price movement you need for profits, given offsetting time decay. Far from expiration, option premium is quite high.

Close-to-expiration options are quite advantageous for swing trading, however. If you use ATM or even slightly ITM contracts, you get the best of both worlds: high leverage with low cost.

Swing traders usually employ shares of stock to play short-term price movement. Long stock is bought at the bottom of the swing and sold at the top; and shorted stock is sold at the top of the swing and then bought to close at the bottom.

Because shorting stock is expensive and risky, many swing traders only play the upswing side, meaning they miss out on half of all swings. Options solve this problem. In its most basic form, long calls and long puts provide low risk and high leverage, also letting you play upswings and downswings. Risk is limited to the relatively low cost of each option.

Because swing trading is based on a three-to-five-day short-term price movement, soon-to-expire ATM options are ideal, if expiration is going to take place within a couple of weeks. Most of the time value is gone and option premium value is most likely to mirror stock movement in the money.

The strategy is based on the observation that in general, the market over-reacts to news. So if an earnings report is short by one penny, a stock might lose three or four points. Equally, if the earnings come in five cents above, prices could soar. But in both cases, the price move only lasts a day or two before giving back some of the move. This is where swing traders can do well. Recognizing the greed and panic in the market, swing traders remain cool and collected, and play off the exaggerated price movements caused by crowd mentality.

The tendency to overreact is the key to swing trading. Traders who swing trade work opposite of the majority and take advantage of the emotional way others trade. They look for clear reversals of four types:

1. Narrow-range days (NRDs), those days with little or no distance between open and close. The NRD often shows up after a short-term uptrend or downtrend and often precedes a sharp reversal.

2. Reversal days, those sessions that go up after three or more down days, or that go down after three or more up days.

3. Volume spikes, days in which the trading volume is abnormally high. This is a sign that something is changing, usually the direction of price.

4. Price gaps. Gaps in one direction often signal a new move in the same direction.

When any two of these signals happen at the same time, it is a strong reversal signal. This is made even stronger when the turnaround is near resistance (for uptrends about to turn) or support (for downtrends about to turn).

Options close to expiration deserve a close look. Anyone trading options should know exactly how they work; however, options provide many benefits and expose you to potentially fast profits for very little risk.

RELIANCE STRANGLE STRATEGY PROFIT BOOKED

"RELIANCE 1400 CALL HOPE U HAVE BOOKED PROFIT @ 34 CALL GIVEN @ 14 "

RELIANCE STRANGLE STRATEGY FOLLOW-UP

"RELIANCE 1400 CALL BOOK PROFIT NEAR 34-35"

RELIANCE STRANGLE STRATEGY FOR APRIL 2017

"RELIANCE 1400 CALL @ 14"

"RELIANCE 1330 PUT @ 11"

FOR FURTHER UPDATE KEEP READING 
PAY OFF TABLE :-

NIFTY TRADING TIPS: BANKNIFTY REPORT FOR FINANCIAL YEAR 2018

NIFTY TRADING TIPS: BANKNIFTY REPORT FOR FINANCIAL YEAR 2018

NIFTY IRON CONDOR STRATEGY FOR MARCH 2017

As the market is very lackluster so in this kind of market we suggest you iron condor strategy which is limited risk & limited return strategy. 

"BUY NIFTY 8900 CALL @ 177"

"SELL NIFTY 900 CALL @ 93"

"SELL NIFTY 9100 CALL @ 38"

"BUY NIFTY 9200 CALL @ 12"

PAY OFF TABLE :-

How To Trade Risk Reversals

TO GET FREE INDEX & STOCK OPTION INTRA-DAY OR POSITIONAL CALLS FILL UP THE FORM GIVEN HERE>>>>>

A risk reversal is a strategy that involves selling a put and buying a call with the same expiry month. This is also known as a bullish risk reversal. A bearish risk reversal would involve selling a call and buying a put. Today we’re going to examine the bullish risk reversal.

Stocks may be extended short-term and due for a pullback, but if a trader wanted to take a bullish position a risk reversal provides can be a good option.

 BE PREPARED TO TAKE OWNERSHIP

 The key with a bullish risk reversal is that you need to be prepared to buy the underling at the strike of the short put. If the underlying is below the strike price at expiry, the stock will be put to you.

The beauty of the risk reversal is that it takes advantage of the inherent skew in options. Generally, implied volatility is higher for puts than calls.

The beauty of the trade is that you can own upside exposure and get paid if the stock goes nowhere. If the stock falls, you end up taking ownership for a price less than when the risk reversal was initiated.

LAST CHANCE!!!

LAST CHANCE!! NEW RATES OPTION CALL & PUT,OPTION STRATEGY OR FUTURE CALLS ARE NOW @ 8000 PM. 

TO GET AT OLD RATES 6500 PM. PAY NOW. HURRY UP!!

TO PAY CLICK HERE 

FOR MORE DETAILS CALL ON 08982086510

FOLLOW UP FOR STRIP OPTION STRATEGY FOR BUDGET 2017-18

We have given strip option strategy on 30 Jan 2017 for budget 2017-18

"Nifty 8600 put 2 lots we have booked on 1 Jan’ 2017 @ 189"

"Nifty 8700 call was left open by us & at the expiry it has settled at 239"

"BELOW IS THE PROFIT SUMMARY"

SCRIP	STRIKE PRICE	MONTH	OPTION TYPE	RECO	RATE	BOOKED AT	Profit / Loss
NIFTY	8600	FEB	PUT	LONG	114	189	5625
NIFTY	8600	FEB	PUT	LONG	114	189	5625
NIFTY	8700	FEB	CALL	LONG	114	239	9375

RISK: REWARD

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