BOOK PROFIT IN SBI STRANGLE STRATEGY

SBI strangle strategy given in post  gives good return….

We have  booked put at 70 and call at 44.

Total return=14250 i.e.  there is net profit of  3750 .

Hope you have booked profit

Benefits of Online trading:

 1.Trade from almost anywhere.

2.Transfer funds online from anywhere.

3.Shares are transferred to and fro online. (as compulsory one has to open a demat account with the same broker he wants to trade online with)

4.Can trade only to the extent of credit in the trading account.

5.Absolutely Real time stock quotes....

WHAT IS INFLATION

Inflation is defined as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase in the average level of prices in Goods and services. Inflation happens when there are less Goods and more buyers, this will result in increase in the price of Goods, since there is more demand and less supply of the goods.

Inflation causes increase of Interest

Inflation can be recognized as a combination of 4 factors :....

A SYNTHETIC SHORT PUT

A synthetic short put is created when long stock position is combined with a short call of the same series. It is so named because the established position has the same profit potential a short put.

The covered call is a popular example of a synthetic short put.

 When to Use

1.In bearish momentum  but want limited risk.......

5 MISTAKES WHILE TRADING IN OPTION

1.Not having a defined exit plan

2.Trying to make past losses by doubling up

3.Trading illiquid option

4.Waiting too long to buy back short strategies

5.Legging into spread trades

BOOK PART PROFIT IN SBIN STRANGLE

SBIN STRANGLE UPDATE:BOOK PROFIT IN SBIN 2150 PUT NEAR 75-77 HOLD 2400 CALL-

SBIN STRANGLE STRATEGY

SBIN STRANGLE :

BUY SBIN 2400 CALL @ 40 AND 

BUY SBIN 2150 PUT @ 44

LOT SIZE : 125

TOTAL INVESTMENT(40+44)*125=10500

RETURN UNLIMITED

CALL BACKSPREAD STRATEGY

The call backspread (reverse call ratio spread) is a bullish strategy in options trading that involves selling a number of call options and buying more call options of the same underlying stock and expiration date at a higher strike price. It is an unlimited profit, limited risk options trading strategy that is taken when the options trader thinks that the underlying stock will experience significant upside movement in the near term....

BROKERAGE AND TAX

If combine this with the fact that inflation reduces the value of money over time, you are just loosing money if you do not invest wisely without understanding brokerage and inflation. A stockbroker earns a commission on whatever transaction you make. Suppose you make a transaction of Rs.2000, and the stockbroker charges you a 3% commission, then you have to pay the stockbroker Rs.60 for the transaction. So your total investment in the transaction in not Rs.2000. The total investment in the transaction is Rs.2060/-Brokers make money on whatever transaction you make. Whether you buy or sell, brokers will make money. Because brokers basically make money on transactions.....

BULLISH OPTION STRATEGIES

BULL CALL SPREAD

For bullish investors who want a nice low risk, limited return strategy without buying or selling the underlying stock, bull call spreads are a great alternative. The bull call spread involves buying and selling the same number of call options at different strike prices.

BULL PUT SPREAD

For bullish investors who want a nice low risk, limited return strategy, bull put spreads are another alternative. The bull put spread involves buying and selling the same number of put options at different strike prices.....