AXISBANK STRATEGY ROCKSS BUY GIVEN IN 25 OCT POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/10/axisbank-option-strategy-for-november.html
AXISBANK 800 NOV PUT BOOKED PROFIT NEAR 55 NOW BUY GIVEN @ 26
PROFIT OF 34800
AXISBANK NOV 920 CALL COTINUE TO HOLD AS IT IS FREE OF RISK NOW
BUY 1 LOT SBIN NOV 480 PUT @ 12 AND 580 CALL @ 9
FOR TARGET UPDATE WHATSAPP ON 9039542248
PNB IS DOWN BY 8%
PNB STRATEGY GIVEN IN 27 OCT POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/10/pnb-q4-result-session-strangle-strategy.html
PNB 45 PUT BOOKED PROFIT NEAR 2.5 PROFIT OF 32000
PNB 48 CALL CLOSED @ 0.25 BUY GIVEN @ 0.80 LOSS OF 8800
NET PROFIT 23200
STRATEGY GIVEN IN 25 OCT 2021 POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/10/axisbank-option-strategy-for-november.html
OPTION STRATEGY BOOK PROFIT IN AXISBANK 800 PUT NEAR 50-55
BUY 1 LOT PNB 48 CALL @ 0.80 & PNB 45 PUT @ 0.50
KEEP READING BLOG FOR THE TARGET UPDATE
PAY OFF TABLE
How exactly do options work? We have all heard of call and put options and options trading. But how to trade options and what are the key features of options trading in India. Let us first understand what call options is and then let us get deeper into call options with an example.
What is
a call option?
Options
are financial contracts drawn on an underlying asset, which can be
stocks, commodities, or currencies.
A call
option is a right to buy without an obligation to buy, which means you execute
an option contract when it is profitable.
A call
option is a right to buy without an obligation to buy. So if you have a call
option on TCS then you have the right to buy TCS but no obligation to buy TCS
at a pre-determined price. For example, if you have bought a TCS 1-month 3540
call option at a price of Rs.20. On the settlement day if the price of TCS is
Rs.3700, the option is profitable to you. But if on that date the price of TCS is
Rs.3200 then you are not interested in buying TCS at 3540 when you can buy it in the open market at Rs.3200.
For this right without obligation you pay a premium of Rs.20, which will be
your sunk cost.
A call
option will have a strike price, which is the specific price quoted for the
underlier in the contract and expiration date. Like in the above example, the
strike price of TCS shares is 3540, and the expiry date is 1-month.
To purchase a call option, you need to pay an amount to the
seller/writer, called a premium. If you choose not to exercise the call option,
the seller gets to retain the premium, which in that case will be his profit.
If the call option holder decides to exercise the right in the contract, the
seller is obligated to sell the underlier at the strike price.
The
opposite of a call option is the put options. Put options give the options
holder rights to sell an underlier at a strike price at a forward date. Both
call options and put options trade in the Indian market. Now let's understand
options trading in India.
Key
Takeaways
- Call
options are financial contracts that give the holder rights to buy an underlier
at a strike price on a future date
-
Executing a call option is profitable when the strike price is lower than the
market price at the time of expiry
- A
call option becomes premium when the price of the underlier moves upward in the
market
- The
market price of the call option is called a premium. It is determined based on
two factors: the difference between the spot and strike price of the
underlier and the length of time until the option expires
- Call options are bought for speculations and sold for income purposes
STRATEGY GIVEN IN 20 OCT 2021 TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/10/bankbaroda-option-strategy-for-october.html
BANKBARODA 100 CALL BOOK PROFIT NEAR 2.8-3 BUY GIVEN @ 1.6 PROFIT OF 14040
BANKBARODA 80 PUT EXIT NEAR 0.40 BUY GIVEN @ 0.70 LOSS OF 3510
NET PROFIT 10530
FOR MORE DETAILS WHATSAPP ON 9039542248
Traders with a view on markets and a risk appetite can take exposure to the Nifty by paying just a fraction of the index’s value through Nifty options and futures.
1. What are Nifty futures and options?
Nifty futures are a contract that gives its
buyer or seller the right to buy or sell the Nifty 50 index at a preset price
for delivery at a future date. Nifty options are of two types —call and put
options. A call option on Nifty gives a buyer the right, but not the
obligation, to buy the index at a predetermined price during a specified time
period. Similarly, a Nifty put gives its buyer the right to sell the index. A
seller of the options is obliged to give or take delivery of Nifty from the
buyers. In practice index futures are cash settled, like their European
counterparts.
2. How does a Nifty futures and options
contract work?
Suppose trader A feels Nifty will rise from 18700,
He can buy one lot (75 shares) of Nifty futures by putting a margin at a
fraction of the contract cost. His counterparty trader B sells her Nifty at
that level. If Nifty rises to, say, 18800 A has the right to buy the index at
18700 from the counterparty and sell it to him at 18800, gaining Rs 5000 (100×50).
If the Nifty futures fall to 18600, B sells the futures to A for 18700 even
though Nifty trades at 18600, which means the buyer faces a Rs 100 a share
loss.
Banknifty options on a weekly basis were first introduced a few years back and have become quite popular among traders. The idea was to encourage more traders in the Nifty to give greater depth and to ensure that risk is reduced with lower time to maturity. In the last couple of years, the Nifty weekly bank options have been attracting interest from traders and from retail investors as a low-cost method of trading the Banknifty options. Let us look at some Banknifty trading techniques and how to trade in banknifty weekly options. Let us also look at the best banknifty trading strategy in the current market.
How traders can profit from the use of Weekly Banknifty options?
Unlike the normal Banknifty options that mature on the last Thursday of every month, the Banknifty options have a weekly maturity. Of course, they have a similar lot size for trading consisting of 40 units per lot and the weekly options will mature on the last Thursday of every week. At any point of time, there will 7 weekly options that will be open for trading. Here is how traders can benefit from the use of Weekly Banknifty options.
Weekly banknifty options can be used as a better hedge against short term even risk. Let us understand this point. For example, if there is a Fed meet on Tuesday where the Fed is expected to announce a tapering of its bond buying policy. In that case, the weekly options expiring in that week will react a lot more compared to the monthly option as the context is more immediate. Thus, these weekly banknifty options give the opportunity to hedge risk in a more immediate perspective.
From an exchange perspective and from the trader’s perspective, the weekly options are likely to increase the volumes of trading in the Bank Nifty. For a very long time, the trading and volumes were concentrated largely on the Nifty alone. This weekly option will give an opportunity to expand the gamut to Banknifty options too. That will be an additional hedging tool.
Historically, banknifty has seen twice the volatility of the Nifty and hence hedging becomes a little more complicated. Since the Banknifty is closely related to the ups and downs of the financial system in India and the world, any news tends to get transmitted rapidly. A weekly option on the Banknifty will be able to capture these kinds of volatility much better as the short-term movements will be captured more effectively.
