VEDL OPTION STRANGLE STRATEGY FPR APRIL 2021

BUY  1 LOT VEDL 280 CALL @ 1.9 AND 220 PUT @ 1.8 

TO GET TARGET UPDATE WHATSAPP ON 9039542248 

PAY OFF TABLE :-

POWERGRID PLAIN VANILLA STRATEGY FOR APRIL 2021

"BUY 1 LOT POWERGRID 200 PUT @ 2" 

TO GET LIVE CALLS WHATSAPP ON 9039542248

OPTION CALL PUT TIPS ROCKS

TIPS GIVEN IN TODAY'S POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/04/buy-2-lots-nifty-14900-8-apr-call-41.html

NIFTY 14900 8 APR CALL ROCKS ACHIEVED TARGET 55 BUY GIVEN @ 41 PROFIT 2100

 ITC 220 CALL ROCKS ACHIEVED TARGET 4.5 BUY GIVEN @ 3.6 PROFIT 2880

NATIONALUM 65 CALL ROCKS ACHIEVED TARGET 1.4 BUY GIVEN @ 1 PROFIT 6800

NET PROFIT 11780

OPTION CALL PUT TIPS FOR 6APRIL 2021

• "BUY 2 LOTS NIFTY 14900 8 APR CALL @ 41 TARGET 55" 

• "BUY 1 LOT ITC 220 CALL @ 3.6-3.7 TARGET 4.5"  

• "BUY 1 LOT NATIONALUM 65 CALL @ 1 TARGET 1.4"

DLF OPTION STRANGLE STRATEGY BOOK PUT OPTION

STRATEGY GIVEN IN TODAY'S POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/04/dlf-option-strangle-strategy-for-april.html

DLF 250 PUT BOOK PROFIT @ 4.5 BUY GIVEN @ 2.5 PROFIT OF 6600

DLF 320 CALL KEEP HOLDING TILL FOLLOW UP

FOR MORE STRATEGY WHATSAPP ON 9039542248

DLF OPTION STRANGLE STRATEGY FOR APRIL 2021

BUY 1 LOT DLF 250 PUT @ 2.5 AND 320 CALL @ 3.5

PAY OFF TABLE :- 

What Are Some Of The Mistakes People Make That Are Destroying Their Financial Lives?

Buying insurance policies for investment purpose: Have you invested your money in insurance plan to get a return in future? Big mistake! Out of 100 people I have spoken, 95 have made this mistake.. Very few people understand the difference between term plan, endowment plan, etc.

Not able to crack the credit card mystery: Are you paying the minimum amout due on your credit card payment? If yes, you are trapped in credit card mystery. On the other side, very few people really enjoy the benefits like free lounge access, buy one get one movie ticket, etc.

No idea about the power of compounding: Everyone has come across the formula of compounding but very few people really understand its power. This is the reason people do not start saving early and hence lose out on the power of compounding. Albert Einstein said that power of compounding is the eighth wonder of the world.

Buying stocks based on tips without any knowledge: You will find every Tom, Dick and Harry giving stock tips over Facebook, Whatsapp and TV. Unfortunately, a lot of people fall in a trap of these people and invest money without any knowledge. What is the end result? They lose everything!

Becoming a victim of lifestyle inflation: Moving from 2bhk to 3bhk just because you have got a good hike, upgrading your car because you have got some bonus are some of the examples of lifestyle inflation destroying financial lives.

Buying things just because they are on discount: From Amazon’s “Great Indian Sale” to Flipkart’s “The Big Billion Days”, everyone is encashing on the weakness of Indians buying things just because it is on discount. Funny thing is now you will find such sales every other month.

Getting tempted to go for an exotic vacation : just because someone put a post on Facebook and Instagram: Instagram and Facebook are introduced as Social Media Platform but they are actually destroying the entire social fabric. Friends are jealous of each other. Most of them are just social media friends. Facebook and Instagram are more of a marketing platform where people post stuff just to get some likes and companies promote their product and services.

Spending a bomb on weekend parties: 5 days work and 2 days party: This is the new culture in India. Pubs are jam-packed on weekends where people would spend a bomb on drinks. By the end of the month, they are left with no money.

No track of cash flow: Very few people keep a track of their expenses. Most of them just don’t know where the money is gone.

No emergency budget: Not having any extra money in the case of an emergency results in embarrassing situations of borrowing money from friends and relative. Some people even break their investments and make a big mistake.

No medical insurance: I have seen people losing out the lifetime savings just because they did not take medical insurance. One accident can shatter all financial dreams. Better be insured. Healthcare cost is rising and it is impossible to manage it without insurance.

No financial plan: People do not know why they need to save money because they don’t know their financial goals.

No diversification: Some people would invest all their money in real estate, some would invest all the money in gold, some would just keep it in the locker, some would invest all the money in the stock market. Very few people understand the right way of diversifying the investments.

Spending all the hard earned money on children marriage: Thanks to our hypocritic society! People save their entire life just to spend all the money on random relatives who only bother about the food and arrangements. What is the topic of discussion at weddings? “Sharma ji ne to unki beti ko car gift kari. (Mr Sharma has gifted a car to his daughter)”. “Mehta ji ne unki beti ko 50 tola sona diya” (Mr Mehta has gifted 500-gram gold to his daughter.)

Buying excessive gold only to keep it in the locker: Gold worth lakhs is kept in lockers only to be used once or twice a year. This is resulting in the money getting blocked and hence not getting any returns on it.

An extremely conservative approach with investment: Traditionally, people have been risk-averse. They would just have an FD and live on 6–7% annual interest. Some would just keep the cash at home.

Lack of clarity between asset and liability: Having a car is not an asset because it consumes fuel and has a maintenance cost. Its price will only depreciate in the future. Car is a necessity but people spend a lot of money and even take the loan to buy a luxury car over and above their budget.

Considering frugal as cheap: A lot of people confuse economic spending with being cheap. An economic spender does not compromise with quality but does his research well enough to buy the product or service at the lowest rate.

Procrastinating investment decisions: “I will invest from tomorrow”. But the problem is that tomorrow never comes.

Spending a lot of money on fancy stuff: A fancy car, a fancy house, a fancy watch, a fancy vacation. People want fancy stuff and willing to pay a premium irrespective of the value it generates.

Lack of patience: “I can’t wait for my wealth to grow. I want to double my investments in 6 months. I need to invest in the stock market.” A lot of people lose their lifetime of savings because they don’t have the patience to understand the investment option and would blindly trust anyone with their investment.

Depending upon others for investment decisions: “I don’t know anything about investment. Please manage my money.” Unfortunately, a lot of people are dependent upon others with their hard earned money. This is the reason we have a lot of self-proclaimed experts giving stock market tips.

Getting too greedy with investment: People blindly invest their money in penny stocks, day trading, futures and options. They eventually lose all their hard earned money. What is the root cause? GREED 

Lack of disciplined investment: Instead of spending what is left after investing, people invest what is left after spending. This results in indisciplined investment.

Root Cause: Lack of knowledge about personal financial management!

SRTRANSFIN OUR TARGET ACHIEVED

SRTRANSFIN  ACHIEVED 1ST TARGET 1438 BUY GIVEN @ 1433 

PROFIT OF 4000

CALL GIVEN IN TODAY'S POST @ 10.32 AM TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/03/blog-post_31.html

SRTRANSFIN FUTURE LEVEL FOR 31 MARCH 2021

 BUY SRTRANSFIN FUTURE 2 LOTS ABOVE 1433 TARGET  1438-  1444 STOPLOSS  1430

Buying A Put V/S Selling A Call: How To Decide

Many F&O traders normally are confused between buying a put option versus selling a call option. Broadly both are bearish strategies and the difference between a call and put option is that while the former is a right to buy the later is a right to sell. Obviously when you buy an option your risk is limited to the premium you pay. That is because your loss is limited to the premium paid while your profits can be unlimited. On the other hand, when sell an option, your income is limited to the option premium received but the losses can be technically unlimited. Let us understand the difference between a call and a put with example. Let us also understand how to trade in call and put options, both on the buy side and the sell side.

Call and put option with a live example
 Let us assume that the current market price of Tata Steel in the spot market is Rs.695/-
ContractCall PremiumPut PremiumITM or OTMNovember 680 Call24.00-ITMNovember 680 Put-7.00OTMNovember 720 Call7.50-OTMNovember 720 Put-28.20ITM  
An In-the-Money (ITM) option is one that has intrinsic value and time value. Take the case of the 680 Call Option on Tata Steel. The Call is currently quoting at Rs.24, of which Rs.15 is explained by the intrinsic value of call option (695-680). The balance Rs.9 is the time value. In case of the 680 put, the intrinsic value is zero and so the entire Rs.7 is explained by time value of money.
Let us come to the 720 strike. The 720 Put is currently quoting at Rs.28.20. Of this Rs.25 is explained by intrinsic value (720-695) and the balance Rs.3.20 is explained by time value of money. In case of the 720 call the entire Rs.7.50 is the time value of money.
What determines the economics of buying a put versus selling call?
As we have already seen, you buy put option when you expect sharp downsides in the stock. Therefore, you bet by limiting your risk to the option premium and play for the downside in the stock. You sell call option when you expect that the upsides for the stock are limited. You are indifferent to whether the stock is stable or goes down as long as the stock does not go above the strike price. Before getting into how to trade in call and put options, let us first understand the difference between call and put positions with the example above.
Let us now consider 2 investors viz. Alpha and Beta. Alpha is an aggressive investor who believes that with the metals cycle already overpriced, Tata Steel price should correct. He expects the price to correct to Rs.640 in the next 1 week. He can sell the Tata Steel 680 call and get a maximum profit of Rs.24, which is a good profit on his margin. However, Alpha is taking on a very huge risk here. Since Alpha has sold the 680 Call at Rs.24, he is only covered up to Rs.704. Any price above that will result in unlimited losses for Alpha. The better option will be buying the 680 November Put option. If the price touches Rs.640, then he makes a profit of Rs.33/- (40-7). In a worst case scenario if the Tata Steel stock goes up to any level, his loss is limited only to Rs.7/- share.
Now, let us consider the case of Beta who is more conservative. Beta is of the view that the stock may be hovering in a range. While downsides are open, its upside is limited to Rs.720. The best option for Beta is to sell the 720 call. Buying the 720 put may be too expensive and buying the 680 put may be too out of the money. Selling the 720 call will give him a premium of Rs.7.50 and serve his view.
Buying a put option versus selling a call option: How to decide?
Your decision whether you should buy a put option or sell a call option will be broadly guided by the following 4 considerations:

Are you having an affirmative view on the stock or index going down? In that case it makes more sense for you to buy the put option. Your downside risk will be limited to the option premium paid and your profits in case the stock falls will be unlimited.

Are you having a cautiously non-affirmative view on the stock? In this case you are only confident that the stock price is unlikely to rise beyond a point. You are indifferent to whether the stock price goes down or stays stagnant at current levels. In such cases, it makes eminent sense to sell the call at the strike where you believe the stock to top out. You can also sell a lower call for higher premium but that is taking on unnecessary risk.

Can you pay the margins for the trade? When you buy a put option, your total liability is limited to the option premium paid. That is your maximum loss. However, when you sell a call option, the potential loss can be unlimited. Hence your margining will be exactly like how the margins are imposed on futures. Be prepared for higher capital outlay in this case.

Lastly, are you playing for a rise in volatility or fall in volatility in the market? If you are playing for a rise in volatility, then buying a put option is the better choice. However, if you are betting on volatility coming down then selling the call option is a better choice.

How to trade put and call options is all about knowing the difference between call and put options in terms of risk and return potential. Your choice can actually be a simple one.