Tuesday, 24 September 2013

DLF STRANGLE STRATEGY

Buy DLF 125 OCT put @6
Buy DLF 160 OCT call @ 6
COST =12   
 RISK PER LOT = 13000
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=172
LOWER BREAK GIVEN POINT=113..

Saturday, 21 September 2013

HOW TO TRADE IN OPTION NEAR EXPIRY

Theta changes at an exponential rate. In English, that means that the time value of any options you’re holding will decay more quickly the closer those options are to expiration. If you’re an option buyer, that means you want the move in the underlying to happen sooner rather than later, because even if you’re right about the direction of an underlying, those long calls you bought last month might still be losers even if your stock makes a big move today, because once you’re close to expiration there will be very little time premium left in those calls....

Thursday, 5 September 2013

LONG BUTTERFLY STRATEGY

Short two calls at the middle strike, and long one call each at the lower and upper strike.  The upper and lower strikes (wings) must both be equidistant from the middle strike (body), and all the options must be the same expiration.
Max Loss
The maximum loss would occur should the underlying stock be outside the wings at expiration.
Max Gain
The maximum profit would occur should the underlying stock be at the middle strike at expiration. 
 Profit/Loss
The potential profit and loss are both very limited.  In essence, a butterfly at expiration has a minimum value of zero and a maximum value equal to the distance between either wing and the body.  An investor who buys a butterfly pays a premium somewhere between the minimum and maximum value, and profits if the butterfly's value moves toward the maximum as expiration approaches.....

Thursday, 29 August 2013

RELIANCE STRANGLE STRATEGY UPDATE


We have booked  820 put  @ 48 earlier and booked 840 call @ 9.30 today. So net profit of 6875 is  made in this strategy .Hope you have booked this strategy.

Thursday, 22 August 2013

BOOK PROFIT IN RELIANCE STRATEGY

RELIANCE STRANGLE STRATEGY UPDATE:
Reliance 820 put book profit near 47-48.

Saturday, 17 August 2013

RELIANCE STRANGLE STRATEGY

Buy Reliance 820 put  @ 15
Buy Reliance 840 call @ 15
Cost=30
Risk per lot =7500
Return=Unlimited
Upper break given point=870
Lower break given point=790
Pay off table....

Tuesday, 13 August 2013

POSITION TRADING

POSITION TRADING: that trading method is used when the trader is going to make a decision within a given context or certain criteria while INTRADAY TRADING is strictly mechanical.
A Position Trader is going to hold his position for a long time frame from months to years. It’s really a safe way of investing with a relatively small amounts of capital.
DISADVANTAGE OF POSITION TRADING
Your trades might take months and the profits will only barely be able to cover your cost of overhead.
Day Trader:  This type of trader is more skilled and flexible as Intraday trading requires experience – lots of it – especially focusing on order entry techniques and a deep understanding of exit points as he is trying to make profits from a small change in prices with rapid trades during the trading day.
And usually he tries to close all his positions before the market closes and doesn’t leave any open positions overnight Intraday traders base their trades on strategies such as Swing trading, arbitrage, candlestick patterns and trend lines.....

Thursday, 1 August 2013

CALENDAR OPTION SPREAD

The calendar spread refers to a family of spreads involving options of the same underlying stock, same strike prices, but different expiration months. They can be created with either all calls or all puts.  Also known as time spread or horizontal spread.
Call Calendar Spread
Using calls, the calendar spread strategy can be setup by buying long term calls and simultaneously writing an equal number of near-month at-the-money or slightly out-of-the-money calls of the same underlying security with the same strike price.
The idea behind the calendar spread is to sell time, which is why calendar spreads are also known as time spreads. The options trader hopes that price of the underlying remains unchanged at expiration of the near month options so that they expire worthless. As the time decay of near month options is at a faster rate than longer term options, his long term options still retain much of their value. The options trader can then either own the longer term calls for less or write some more calls and repeat the process....

Thursday, 25 July 2013

Gold no longer a safe heaven – A major shift from precious metal to “Just a commodity”

Keep converting your useless physical Gold inventory to different asset classes or just cash
“The mind is its own place, and in itself can make a heaven of hell, a hell of heaven.”Nature created human and human destroying nature, that’s a bitter truth we are all living with . We often see documentaries, news articles, presentations or activities/movements to save nature , or just to spread awareness.“Mount Everest” – highest peak of Himalaya , once unconquered and considered invincible. One gentleman from New Zealand , Sir Edmund Percival Hillary reached the peak for the first time and opened the gate of a new destruction In ancient history, this precious metal , which was far from the reach of common people, was found only in possession of Emperors ....

Wednesday, 24 July 2013

FUTURE OPTION CALLS ON MOBILE

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