DLF SHORT STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

Option calls premium have time value in it. Tomorrows trading session is followed by very Long weekend. To en cash this situation we recommend Short Strangle strategy in DLF as it is trading around its average Price.

DLF SHORT STRANGLE STRATEGY

LEG1: SELL DLF 200 PUT@5.70

LEG2: SELL DLF 220 CALL@4.70

CREDIT RECD =(5.70+4.70)*1000=10400

OUT LOOK  5-7 Days

Continue to Hold With SL of 3 Rs

Low Volatility Option Strategy

Low Volatility Options Strategies

Market is in very narrow range. April is generally low volatility month. In such scenario Long Option Traders tend to loose money day by day. Here we present some option strategies for this type of lack luster market.

Low volatility options trading strategies you can use:

Short Puts and Calls – This is the main strategy we use here and by far the most profitable. It’s cheap and you don’t have to enter multiple options making it an easy trade for beginners. With short options you can move your strike price far from the current market forcing the market to make dramatic moves in short time period. You also have positive time decay since you collect the premium up-front and let the option expire worthless at expiration.




   Short Strangle – A combination of short Puts and short Calls. Again a great risk reward type trade because you collect an up-front premium and let the options expire worthless in a flat market.

Long Butterfly Spread – Very complicated and complex option trade. No recommended for beginners! This is a great strategy with limited risk but you have to be dead on in your analysis of where the stock will close at expiration. Sure the risk is capped but if your not right at expiration there’s a 100% chance you will lose money.

BOOK PROFIT IN NIFTY SHORT STRANGLE

BOOK PROFIT IN NIFTY SHORT STRANGLE

NIFTY SHORT STRANGLE BOOK PROFIT

5100 PUT BUY @ 41(SOLD @ 64)

5500 CALL BUY @ 41(SOLD @ 64)

TOTAL PROFIT =2300 PER LOT
http://www.optioncallputtradingtips.blogspot.in/2012/03/nifty-short-strangle-strategy.html

OPTION CALL PUT TRADING

KEYS TO SUCCESS IN OPTION CALL PUT TRADING

1) Don’t Average There is a reason for the expression that ” the trend is your friend.”  Don’t fight it and most of all Don’t assume that it will turn itself around. Averaging down into a losing trade is a sure way to lose your money.

2) Trade when the market goes up and when it goes down. Most traders know how to buy calls. They know how an when to buy  when they believe that the market will go up. But there is an equal amount of money to be made when it goes down. You have to be comfortable investing in both calls and puts. Again look at the trend and if it reverses get out of the trade.

3) Trade logically. Fear based trading is a sure way to lose money. Fear creates paralysis. It keeps you from pulling the trigger and getting out of a trade.

4)Trend: The objective of successful options strategies is to create profit. It is opposite of what many believe. You are not there to buy low and to sell high, but to buy high and to sell higher, or to sell short low and to buy lower. Look at the trend.

5) Sell markets that show the greatest weakness; buy markets that show the greatest strength. Again look at the trend. You are not here just to buy into strong markets. You are here to make a profit either way.

6) Trading is not compulsory:You do not have to be in a trade all the time. There are times when the markets are flat or in a sideways trend. This is not the time to enter a trade. Stay out of the market!

7) No one can predict the market. Your options strategies should always include entry and exit points. Have a stop loss point in mind for each trade before you enter it. This is where most people get it wrong. You must be willing to put exit points in and stop losses as well.

You will win many trades but you will also lose some. No one is infallible. The main thing to remember is that you must trade long enough and minimize your losses enough to continue trading for those big winning trades.

NIFTY SHORT STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

NIFTY has been trading around 5400 levels for quite some time. We expect it to continue for some more time.

We suggest SHORT STRANGLE STRATEGY for Monday

Nifty SHORT STRANGLE STRATEGY

LEG1: SELL NIFTY  APR 5100 PUT @ 64

LEG2: SELL NIFTY APR 5500 CALL @ 64

CREDIT RECD =(64+64)*50= 6400

OUTLOOK : 5-7 DAYS

CONTINUE TO HOLD WITH SL OF 50 POINTS EITHER SIDE.

Book profit in Nifty short strangle

OUT NIFTY SHORT STRANGLE IS GIVING PROFIT OF 50 POINTS .BOOK NOW

Nifty Short Strangle Strategy

Nifty has been in narrow range for some time. We expect it to continue doing so till budget session and forthcoming election outcome.

Nifty short strangle is our pick for coming week

Sell Nifty 5200 put @ 85

Sell Nifty 5600 call @ 67

Total Return  =(85+67)*50=7600

Lower Break Even Point=5048

Higher Break even Point=5752

KEEP SL Of 50 points

Time Frame =7-10 Days

  

BOOK PROFIT IN NIFTY STRANGLE

Nifty Strangle strategy rocks !!!! Book profit ...Book nifty 5400 call @ 200
Total cost Rs 140.

NIFTY OPTION LONG STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

                      

The long strangle, also known as buy strangle or simply "strangle", is a neutral strategy in options trading that involve the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5400 CALL @ 70

LEG2: BUY NIFTY 5000 PUT @ 70

COST =140          

 RISK PER LOT = 7000

RETURN = UNLIMITED

Pay off table

Closing price	Lot size	trading cost	Total Investment	Return from call	return from put	Payoff
4800	50		7000	0	10000	3000
4825	50		7000	0	8750	1750
4850	50		7000	0	7500	500
4875	50		7000	0	6250	-750
4900	50		7000	0	5000	-2000
4925	50		7000	0	3750	-3250
4950	50		7000	0	2500	-4500
4975	50		7000	0	1250	-5750
5000	50		7000	0	0	-7000
5025	50		7000	1250	0	-5750
5050	50		7000	2500	0	-4500
5075	50		7000	3750	0	-3250
5100	50		7000	5000	0	-2000
5125	50		7000	6250	0	-750
5150	50		7000	7500	0	500
5175	50		7000	8750	0	1750
5200	50		7000	10000	0	3000
5225	50		7000	11250	0	4250
5250	50		7000	12500	0	5500
5275	50		7000	13750	0	6750
5300	50		7000	15000	0	8000
5325	50		7000	16250	0	9250
5350	50		7000	17500	0	10500
5375	50		7000	18750	0	11750
5400	50		7000	20000	0	13000
5425	50		7000	21250	0	14250
5450	50		7000	22500	0	15500
5475	50		7000	23750	0	16750
5500	50		7000	25000	0	18000
5525	50		7000	26250	0	19250
5550	50		7000	27500	0	20500
5575	50		7000	28750	0	21750
5600	50		7000	30000	0	23000