Thursday 25 October 2012

IDFC BULL CALL SPREAD STRATEGY


Here we present you Bull call spread option trading strategy which is explained in detail in our earlier post http://optioncallputtradingtips.blogspot.in/
IDFC BULL CALL SPREAD STRATEGY
LEG1: BUY IDFC  160 NOV CALL OPTION @ 5.10
LEG2: SELL IDFC 170  NOV CALL OPTION @ 2.2
COST =5800          
 RISK PER LOT = (5.10-2.2)*2000=5800
MAX RETURN 14200
Pay off table

Tuesday 23 October 2012

THINGS TO KEEP IN MIND WHILE TRADING OPTIONS


Below given are the DO’S while trading in options
1.Always deal with the market intermediaries registered with Sebi/Exchanges
2.Provide complete and correct email address and mobile number while opening                   trading / demat account.
3.Trade wisely ,create your own trading strategy depending upon the conclusions drawn from the various sources.
4.Insist on a Contract Note for every trade....

Saturday 20 October 2012

BEST TIME TO TRADE IN OPTION

Timing is essential in all financial trades. With option  the fluctuations may be the whole thing! The most appropriate investment saying for it might be, "Buy at the right time"! For example, you may be certain that an asset will rise in value. You are correct, and the asset rises in value during the day, week, etc. But as it was rising it had a few moments of backtracking. If you bought a binary option for the asset to rise, but you timed it for the short period when it lost a bit of value on its way up, you will lose money on the option even though your analysis was completely correct, long term.
Information that Affects Timing
The following points are items that can affect a traders timing:
·         Company earnings reports
·         Government reports
·         Political or social unrest
·         Sudden introduction of a competitive product
·         Volatility. If the asset is being traded more widely than usual, it often indicates strong market sentiment for the asset to continue moving in the same direction for a while.

To calculate the average monthly range one  will need access to reliable historical prices. For any stock, you can get historical open, high, low and closing prices for a given date range. This will give you all the key numbers that will be used in the calculation - the high and the low for each trading day. The average monthly range is nothing more than an average price within which the market fluctuates in a given month between its high and its low.

Timing the Different Types of Option...

Thursday 11 October 2012

NIFTY SHORT STRANGLE STRATEGY

FRIDAY  being a shy day for the market , we are giving a short strangle strategy. This strategy is aiming to en cash option time value.
SELL  Nifty 5700 call @94
SELL Nifty  5800 put @96
TOTAL RETURN=(94+96)*50= 9500
LOWER BREAK EVEN POINT=5606
HIGHER BREAK EVEN POINT=5896
STOPLOSS WHEN CUMULATIVE PRICE GOES TO 230
OUTLOOK  FOR 7-9 DAYS

Saturday 29 September 2012

BEST OPTION CALL PUT TIPS


1. Clear Vision Of Target

We must always remember that reward and risk go hand-in-hand in trading and that we cannot expect to achieve high returns without planning for high risk (i.e. draw-downs). Your objectives and goals will be very specific to you, but they must have the following characteristics to be useful:

Be measurable
Be achievable
Be worthwhile
Be positive 

2. Discipline
This is most important part of option trading. In order to realize the full potential of your trading systems it is critical that you take every trading entry, adjust every stop, and close out every trade as and when your system says you should do

3. Never add to a losing trade

Averaging is Options could prove to be very dangerous as there is always time factor.

Tuesday 25 September 2012

PANTALOONR STRANGLE STRATEGY

STRANGLE STRATEGY IN PANTALOONR :
BUY PANTALOONR 220 CALL @2 AND PANTALOONR 200 PUT @2.50







Friday 21 September 2012

BOOK PROFIT IN HEROMOTOCO STRATEGY


Our HEROMOTOCO STRANGLE STRATEGY given  is giving profit of RS 24 per lot and contd… to hold. The call  was given @25 is trading at @79 now, put is on hold.

Saturday 15 September 2012

HEROMOTOCO STRANGLE STRATEGY

As we have noticed the upward move of the index in past days and we expect this pace to be continued.
We recommend HEROMOTOCO STRATEGY for coming trading sessions.

HEROMOTOCO STRANGLE STRATEGY
LEG1: BUY HEROMOTOCO 1850 CALL @ 25
LEG2: BUY HEROMOTOCO 1850 PUT @ 30
COST =55             
 RISK PER LOT = 6875
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=1905
LOWER BREAK GIVEN POINT=1795

BOOK PROFIT IN NIFTY STRANGLE STRATEGY

Our NIFTY STRANGLE STRATEGY ROCKS!!!!!!!!!!!!!!  NIFTY 5400 CALL made a high of  201  yesterday. BOOK PROFIT in NIFTY 5400 CALL  and keep holding NIFTY 5200 PUT. Keep reading for much such rocking strategies….