RCOM STRANGLE STRATEGY

Buy RCom 130 call @ 1.60

Buy RCom 120 put @ 1.60

COST =3.20 

RISK PER LOT = 6400

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=133.2

LOWER BREAK GIVEN POINT=116.8

Pay off table:

BOOK PROFIT IN NIFTY STRANGLE

BOOK PROFIT IN NIFTY STRANGLE BOOK NIFTY 6300 CALL NEAR 100 HOLD 6100 PUT

NIFTY STRANGLE STRATEGY

Buy Nifty 6100 put @55

Buy Nifty 6300 call @47

COST =102 

RISK PER LOT = 5100

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=6402

LOWER BREAK GIVEN POINT=5098

Pay off table:...

WHY ARE OPTIONS BETTER THAN FUTURES

First of all, both options and futures are derivatives and leverage instruments and are therefore inherently riskier than simply trading stocks itself. Also, both options trading and futures trading can be equally risky if your ability to produce fairly accurate analysis and outlook of their underlying asset is no good. 

Now, comparing options trading and futures trading, I would say that for beginners, Options Trading is less risky than Futures Trading for a number of reasons. 

Firstly, bigger rewards comes with bigger risks. Futures trading is capable of producing return on investment and leverage far greater than can be attained in options trading 

Secondly, when you buy call and put option, your maximum risk is limited only to the amount of money you used when buying those options. The worst that can happen is that your prediction is totally wrong and the options simplyexpire  worthless. You don't lose more money than that. However, in futures trading, you are subjected to unlimited liability and will be expected to "top up" your daily losses by the end of each day in what is known as a margin call. This daily loss continues as long as the stock continues to go in the wrong direction..............

TRADING AND INVESTING

Trading typically refers to purchasing and marketing stocks or other monetary instruments for shorter periods of time, typically less than a few months. It is something that is done without much preparation or research i.e. It is said to be trading when someone purchases and sell stocks and mutual funds at will..

Investing traditionally refers to purchasing and marketing stocks or other monetary instruments for a long period of time, typically ranging over several years.....

HOW TO CHOOSE STOCKS FOR DIVIDEND

Financing in shares that paying for dividends is solely the greatest financial decisions a stakeholder can step to make. These funds not only present a prospect to amplify net value from growing share prices, they also can assist harmonize an investor’s income for several years. So long as an investor is scrupulous about choosing these investment options, there is meagre supplementary menace over the long-standing. Stock Dividends can be outstanding as a source of steady income, while you still get to uphold the stock shares for further income. There is also sensitivity that companies, which can pay for dividends, are usually steadier....

BOOK PROFIT IN TATA MOTORS OPTION STRATEGY

BOOK PROFIT IN TATAMOTORS 360 PUT  GIVEN @ 3.25 NEAR 10 AND  CONTINUE TO HOLD CALL TILL NEXT FOLLOW UP.

TATAMOTORS STRANGLE STRATEGY

BUY TATAMOTORS 360 PUT @ 3.25

BUY TATAMOTORS 410 CALL @ 2.90

COST =6.15   

RISK PER LOT = 6150

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=416.15

LOWER BREAK GIVEN POINT=353.85

Pay off table:....

BEAUTY OF COMBINATIONAL STRATEGIES

The reason I’ve sought to bring your attention to the various strategies is to show how each strategy is such a unique tool. Much like hydrogen and oxygen combine to form a unique substance (water), putting options together into various combinations results in some amazingly unique risk/reward profiles.

Buy an at-the-money call or a put and the chances are good that you will loose all your money (stops notwithstanding). However, buy a straddle (both a call and a put at the same strike price and expiration month) and the possibility of losing all your money is practically nil (the underlying would have to finish precisely on the strike price)......

IBREALEST OPTION STRATEGY ROCKS !!!!!!!!!!!! BOOK FULL PROFIT

IBREALEST 75 call hope u have booked profit @ 2.5 ,now book profit in 65 Put near 1.5
Total Profit in strategy is 9600.Hope you have booked full profit

IBREALEST STRANGLE STRATEGY UPDATE

 IBREALEST 75 call given @ .70  book profit near 2.4-2.5.and continue to  hold the put till next follow up.

IBREALEST STRANGLE STRATEGY

Buy IBREALEST 75 call @.70

Buy IBREALEST 65 put @.90

COST =1.6   

RISK PER LOT = 6400

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=76.6

LOWER BREAK GIVEN POINT=63.4

Pay off table:....

FUTURE BASIS

The basis reflects the relationship between cash price and futures price. (In futures trading, the term "cash" refers to the underlying product). The basis is obtained by subtracting the futures price from the cash price.

The basis can be a positive or negative number. A positive basis is said to be "over" as the cash price is higher than the futures price. A negative basis is said to be "under" as the cash price is lower than the futures price....

HURRY...DIWALI OFFER

Diwali Bumper Offer on Options Pack!!!!!!

Options(Stock & Nifty) @ 3500 PM Actual price Likely to be 5000 After Diwali…….Hurry Up…..For Details Contact +919826586510

Or Visit www.richerconsultancy.com

NEUTRAL STRATEGIES

Neutral options trading strategies are employed when the options trader does not know whether the underlying stock price will rise or fall. Also known as non-directional strategies, they are so named because the potential to profit does not depend on whether the underlying stock price will go upwards or downwards. Rather, the correct neutral strategy to employ depends on the expected volatility of the underlying stock price....

BOOK PROFIT IN DLF STRATEGY

DLF STRANGLE STRATEGY

 Book Profit  in DLF OCT 160 call @14.

DLF 160  Oct  call was given @ 6  

RELIANCE STRANGLE STRATEGY

BUY RELIANCE 840 PUT @ 14

BUY RELIANCE 900 CALL @14

COST=28

RISK PER LOT=7000

RETURN= UNLIMITED

UPPER BREAK EVEN POINT=928

LOWER BREAK EVEN POINT=812

Pay off table:...

STOCK TRADING AND BEST STOCK ADVISORY SERVICE

Are you worried about the falling prices in stocks  Then you should not worry as you need to know how to get profit from a falling stock. Everybody has a different concept when it comes to making money in the stock market. One of the most common strategies to make money is to buy shares when the price is low and selling them at a high price when it rises. This is known as stock trading.

Get A Good Survey From The Market

Know About Different Concepts

Buy And Sell Stocks

Look For A Stock Consultancy Service best one like http://www.richerconsultancy.com/

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..

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....

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.....

RELIANCE STRANGLE STRATEGY UPDATE

RELIANCE STRANGLE STRATEGY ROCKS!!!!!!!!.

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.

BOOK PROFIT IN RELIANCE STRATEGY

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

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....

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.....

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....

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 ....

FUTURE OPTION CALLS ON MOBILE

OPTION CALL PUT TIPS ON MOBILE

TO GET FREE OPTION CALL PUT TIPS ON MOBILE

CLICK HERE

PLS FILL  YOUR NAME AND MOBILE NUMBER IN FREE TRIAL FORM 

TIME DECAY IN OPTION

The ratio of the change in an option's price to the decrease in time to expiration. Since options are wasting assets, their value declines over time. As an option approaches its expiry date without being in the money, its time value declines because the probability of that option being profitable is reduced. Time decay is a crucial component traders consider when deciding when/where to buy sell options.....

IMPACT OF RISING DOLLAR ON ECONOMY

All eyes are on the rupee which has fallen in value against the US dollar. It has racked up macroeconomic issues concerning the slow economic growth, corporate earnings and market volatility. It is the common man who is going to hit the most.The falling rupee and the rising dollar can be translated into more expensive foreign holidays, educations or products. 

The Fast Moving Consumer Goods like soaps and shampoos require imported raw material. The cost pressure on companies will lead them to revise the prices of their products. The prices of pulses and oil which are largely imported are going to see a rise in prices....

BANKING LICENSE:26 IN QUEUE

A banking license is a prerequisite for a financial institutionthat wants to provide  services. Under most jurisdictions the fundamental banking activities, such as taking deposits from the general public are exclusive to holders of a banking license. A non banking servicesis an institution that provides financial services without meeting the legal definition of a bank, such as holding a banking license

Licenses are typically issued by the banking regulatory body in which the bank is established. There is a relatively long and complicated procedure that goes into the application. This procedure will also depend on the type of bank license that you wish to apply for. Licensing is generally broken down into different categories, while each category has a different specialization, and a different time frame involved in the banking license application process....

SBIN OPTION STRATEGY UPDATE

Update of SBI strangle strategy given in post--- SBIN 1800 PUT BOOK PROFIT NEAR 49-50 .

INFY RESULT GOOD OR BAD

No other stock traded on the Indian bourses reacts consistently the way Infosys does. A swing of 8-10% on the result day is normal for the stock.The ‘long strangle’ option strategy (buying an out of the money call and similar number of out of the money puts) is something that most option traders practices on Infosys’ result day. The build of position in the stock is the main reason for the stock movement.
 

This quarter the ‘calls’ have won. Infosys surprised the market by announcing better than expected numbers resulting in the stock shooting over 11%. However, the devil is in the details. While the market has reacted sharply to the numbers, it is the consistency of these numbers that is key for the long term revival of sentiments in the stock....

CURRENCIES MEASURED IN TERMS OF DOLLAR

Currencies always trade in pairs because the value of each currency is measured against that of another currency, yeilding a rate of exchange for the currency pair. The primary reason that most currencies trade in the forex market against the U.S. Dollar goes back to Bretton Woods agreement made near the end of the Second World War.After that devastating global war, the United States was the only major country which emerged relatively strong economically after the costly conflict compared to the other significant nations of the world.Despite proposals for the creation of a neutral global reserve currency called the bancor, pressures prevailed for the U.S. Dollar to be chosen as the world's reserve currency at the Bretton Woods conference held in New Hampshire in 1944, just before the end of the war....

SBI STRANGLE STRATEGY

Buy SBI 2000 call @25

Buy SBI 1800 put @ 21

COST =46    

 RISK PER LOT = 5750

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=2046

LOWER BREAK GIVEN POINT=1734

Pay off table...

Rupee opens flat at 60.11 per dollar

The Indian rupee opened flat at 60.11 per dollar versus 60.13 yesterday. "The rupee could be weak on overnight dollar strengthening. The range for the day is seen between 60.10-60.40.Demand from oil importers and the much expected inflows for the HUL open offer led to rupee volatility yesterday. The rupee could be weak on overnight dollar strengthening.

COMPARISON BETWEEN DERIVATIVE AND EQUITY TRADING

In derivatives trading, traders can hold long or short positions for more than 1 day whereas in equity trading, short sell tradings are supposed to square off before the market closing on the same day. Traders must not carry forward their short positions in any way, denying which results in penalty around 20% in auction market Apart, these tips are divided into indexes and stocks. As said in our previous article, virtual scrips like nifty, bank nifty, cnx IT ect., are called as index stocks where as companies which exist in real are said to be stock scrips....

OPTION ADJUSTION

Adjusting an option position really is an essential skill for any investor – I would even say it is a mandatory requirement. Properly managing risk by adjusting can help you repair strategies that have gone wrong, limit huge losses or even create additional potential gains As a disclaimer it’s important that you know both HOW to adjust an option trade and that you are aware of the additional broker commissions you will be charged to exit/enter additional contracts. Take your time when adjusting so that you don’t adjust and create an even bigger hole from which to dig out of.

1. What’s the goal?

 Make sure that you are either reducing risk somehow someway or  creating a new strategy that could make you more money.

2. Are you really reducing risk?

Forget for a minute that you are not going to make money if you get into a bad trade.

3. Should you just close out the trade?

This is always one of my 1st considerations. If you’ve made a small profit and things are starting to go south it might be a wise decision to just close out the trade and re-evaluate the market. Don’t let your ego get in the way of making money.

4. How have the market trend  changed?

I’m sure when you entered the trade you had a firm opinion on the market if the trend is changing then is your options strategy structured to profit from the new market Wait to see a medium term change to adjust and remember that 1 day doesn’t make a trend.

OPTION STRATEGY PACKAGE

We have posted a sample strategy Nifty strangle strategy  on our blog. If you wish to get more such rocking!!!(5-7)  strategies in a month join our option strategies package. The traders having lack of time but interested in trading will love this package which gives LOW RISK HIGH RETURNS.

Price of our OPTION STRATEGY PACKAGE :

Monthly:     5000

Quarterly:   10000

Half yearly: 18000

Yearly :      35000

CONTACT @ 9179333088 FOR DETAILS  

SHORT STRANGLE STRATEGY

Components

Short one put option with a lower strike price and short one call option at a higher strike price.

Risk / Reward

Maximum Loss: Unlimited as the market moves in either direction.

Maximum Gain: Limited to the net premium received for selling the options....

RELIANCE STRATEGY UPDATE

RELIANCE OPTION STRATEGY 

Book CALL @ 27-28 and PUT contd… to hold. 

LONG STRANGLE STRATEGY

Components

Long one put option with a lower strike price and long one call option at a higher strike price.

Risk / Reward

Maximum Loss: Limited to the total premium paid for the call and put options.

Maximum Gain: Unlimited as the market moves in either direction.

Characteristics

When to use: When you are bullish on volatility but are unsure of market direction....

RELIANCE STRANGLE STRATEGY

BUY RELIANCE 820 CALL @11

BUY RELIANCE 760 PUT @11

COST =22     

 RISK PER LOT = 5500

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=842

LOWER BREAK GIVEN POINT=738

PAY OFF TABLE:...

NIFTY SHORT STRANGLE STRATEGY

SELL NIFTY 6000 PUT  @54

SELL NIFTY 6200 CALL @59

TOTAL RETURN=(54+59)*50= 5650

LOWER BREAK EVEN POINT=6141

HIGHER BREAK EVEN POINT=6054

OUTLOOK  FOR 7-9 DAYS

ADVANTAGES AND DISADVANTAGES OF ONLINE AND OFFLINE TRADING

The introduction of the Internet has surprisingly changed our way of life as a society. It has defined the way we do business and the way we correspond. The Internet has opened many opportunities for online trading. The financial industry revolves around the Internet. Every thing is just a few clicks away. This makes online trading most convenient. But there are still investors who prefer the old fashion way of offline trading and they mainly prefer offline trading for security reasons. Of course, online trading has many pros. There are several wonderful reasons to invest online and consider online trading.

1. Money saving opportunities
The amount of money you save depends primarily on the online brokerage firm that you choose. 2. Instant online access –One can gain instant access to your account, the value of your portfolio updates immediately before your eyes....

Features of Offline trading:

 1.Call or visit the broking firm and trade.

2.Transfer funds online as well as via cheque

3.Shares can be transferred online if account is with same broker else can deliver   manually too.

4.Trading limits can be flexible depending on the relationship with the broker.

5.Can’t view real time quotes, would have to depend on the dealer.

6.Tele-confirmation of trades.

7.Contract notes can be viewed online as well as can be received offline via courier

8.Accounts, balances, portfolio etc can be viewed online as well as on request can be received via courier.

9.Higher brokerage/commission costs.

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.......