PETRONET PLAIN VANILLA OPTION STRATEGY

Buy PETRONET Jan 170 call around 1.9-2

Pay off table:

Strike Price	Call Option Price	Lot Size	Strike rate	Closing price	Return	Payoff
170	1.9	2000	2	158	0	-3800
170	1.9	2000	2	160	0	-3800
170	1.9	2000	2	162	0	-3800
170	1.9	2000	2	164	0	-3800
170	1.9	2000	2	166	0	-3800
170	1.9	2000	2	168	0	-3800
170	1.9	2000	2	170	0	-3800
170	1.9	2000	2	172	4000	200
170	1.9	2000	2	174	8000	4200
170	1.9	2000	2	176	12000	8200
170	1.9	2000	2	178	16000	12200
170	1.9	2000	2	180	20000	16200
170	1.9	2000	2	182	24000	20200
170	1.9	2000	2	184	28000	24200
170	1.9	2000	2	186	32000	28200
170	1.9	2000	2	188	36000	32200
170	1.9	2000	2	190	40000	36200
170	1.9	2000	2	192	44000	40200

NIFTY STRANGLE STRATEGY

Buy Nifty Jan 5900 put @70

Buy Nifty Jan 6000 call @78

COST=148

RISK PER LOT=(70+78)*50=7400

RETURN=UNLIMITED

LOWER BREAK EVEN POINT=5922

HIGHER BREAK EVEN POINT=5970

OUTLOOK  FOR 7-9 DAYS

More about Option Call Put tips on google+

CALL PUT RATIO

The put-call ratio is a popular tool specifically designed to help individual investors gauge the overall sentiment of the market. The ratio is calculated by dividing the number of traded put options by the number of traded call options. As this ratio increases, it can be interpreted to mean that investors are putting their money into put options rather than call options. An increase in traded put options signals that investors are either starting to speculate that the market will move lower, or starting to hedge their portfolios in case of a sell-off...

DIFFERENCE BETWEEN CALL AND PUT OPTION

An Options are of two types one is call option and other is put option, let’s look at the differences between call and put option to get a better idea about both of them –

1.    A call option is one which allows the buyer of the option to buy an agreed quantity of stock, while put option is one which allows the buyer of the option to sell agreed quantity of stock

2.    A person who buys call option is bullish on the stock while the seller of call option is bearish on the stock....

BOOK PROFIT IN SESAGOA BULL CALL SPREAD

BOOK PROFIT IN SESAGOA BULL CALL SPREAD GIVEN ON  
10 DEC 2012
190 CALL TRADING @ 9
200 CALL TRADING @ 3
NET GAIN 6
COST 3.5
NET PROFIT 2.5*1000 =2500 PER LOT

More about Option Call Put tips on google+

SESAGOA OPTION STRATEGY(BULL CALL SPREAD)

LEG1: Buy SESAGOA 190 call @ 6

LEG2: Sell SESAGOA 200 call @ 2.50

Net Risk  =(6-2.50)*1000=3500

OUT LOOK  5-7 Days

Pay off table....

BOOK PROFIT IN NIFTY STRADDLE STRATEGY

NIFTY STRADDLE STRATEGY ROCKS!!!!!!!!!

Nifty 5600 straddle strategy given on 19 nov 2012 composed of 5600 put @ 50 and 5600 call @ 45.

Nifty closed at 5825 today. The total cost of this strategy was 95.

Return from 5600 call = 5825-5600=225

Return from 5600 put= 0

Profit per lot is (225-95)=130.

Total   profit given by this strategy is 130  per lot. Hope u have booked profit.
To get direct strategies like this please fill this form---->

More about Option Call Put tips on google+

HOW TO PUT STOP LOSS IN OPTION?

A stop loss is an order placed with a broker to sell a security when it reaches a certain price and is designed to limit an investor's loss . A good stop based on closing prices is one that is placed 3% below a rising trend line. The stop is triggered only if the stock closes at or below the stop....

COVERED CALL OPTION

Selling the call obligates you to sell stock you already own at strike price  if the option is assigned. One can run this strategy after they have already seen nice gains on the stock. Often, they will sell out-of-the-money calls, so if the stock price goes up, they are willing to part with the stock and take the profit....

HEDGING FUTURE WITH OPTION

Hedging in common words is insuring against a negative event. This doesn't prevent a negative event from happening, but if it does happen and you're properly hedged, the impact of the event is reduced.
 HEDING FUTURE WITH OPTION

 1.Note the size of your futures position and buy a corresponding number of options.....

NIFTY LONG STRADDLE STRATEGY

Buy Nifty 5600 call @45

Buy Nifty 5600 put @50

More about Option Call Put tips on google+

PAY OFF TABLE

OPTION BUYING V/S WRITING

Definition of  Buy-Write

Option buying means buying a put option and option writing means selling a put option. Option buying has limited risk where as option writing has as much risk as future.

OPTION BUYING V/S OPTION WRITING

1.Buying options - limited loss, unlimited profits where as Writing options - limited profits, unlimited losses 

2.Option writers have a significantly higher chance of making money as compared to option buyers......

DIWALI 2012 PICKS

1.PANTALOON R

   Buy  around 198 tg 259

   Expected returns= 23.55%

 2.ALEMBIC PHARMA

   Buy  around 68 tg 99-100

   Expected returns=32%...

BOOK PROFIT IN IDFC STRATEGY

IDFC strategy given on 25 oct 2012 is  giving  profit of  3.1 Hope you have booked profit. IDFC 160 NOV call is trading at 10  and  IDFC 170 NOV  call is trading at 4.65 now.More about Option Call Put tips on google+

BOOK PROFIT IN IDFC BULL CALL SPREAD STRATEGY

IDFC strategy given on 25 oct 2012 is  giving  current profit of  1.1  contd to hold ...Book profit when you get profit of Rs 3. IDFC 160 NOV call is trading at 7.30 and  IDFC 170 NOV  call is trading at 3.20 now.More about Option Call Put tips on google+

HOW TO HEDGE FUTURE WITH OPTION

      I.            Buy corresponding number of options as your Future positions. For example, if you have a position size of five futures contracts, purchase five corresponding options to completely hedge your position. Also, make sure the expiration month of the options you purchase matches the expiration date of the futures contracts you own.

  II.            Select a strike price that fits your accepted level of risk tolerance. When you purchase an option, you must specify a strike price. The closer the strike price is to the current futures price, the more expensive the option.

FREE OPTION TIPS ON MOBILE

http://optioncallputtradingtips.blogspot.in/2012/05/get-free-option-call-put-tips-on-mobile.html

More about Option Call Put tips on google+

                  

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

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....

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...

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

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.

PANTALOONR STRANGLE STRATEGY

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

FREE OPTION CALL PUT TIPS

To get FREE OPTION CALL PUT TIPS please fill the form on right side of your screen

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.

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….

OPTION STRATEGY:lets learn butterfly strategy in simple terms

Description 

A butterfly strategy is an option strategy using multiple puts and/or calls to make a bet on future volatility without having to guess in which direction the market will move. The long butterfly spread is a three-leg strategy that is appropriate for a neutral forecast when you expect the underlying stock price to change very little over the life of the options.

For example:A long butterfly strategy is constructed from three sets of either puts or calls having the same expiration date but different exercise prices. For example, with the underlying asset trading at 100, a long butterfly strategy can be built by buying puts at 95 and 105, and selling  twice as many puts at 100, same can be done with calls. If the underlying does not change price by expiry, the puts at 95 and 100 will expire worthless, and the puts at 105 will be worth 5 (from 105-100). If the underlying is greater than 105 at expiration, all the puts expire worthless, and the initial cost of the butterfly is the amount of the loss. If the underlying is less than 95 at expiration, the gain from the purchased put at 105 will offset the losses from the shorted puts at 100, and the loss is again limited to the initial cost of initiating the butterfly strategy. In essence, this is a limited-risk, limited-gain approach to shorting the volatility of the underlying, as the maximum profit comes when the underlying has no volatility at all.....

NIFTY STRANGLE STRATEGY

Volatility is back in market. For coming sessions we recommend Nifty strangle strategy:

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5200 PUT @ 55

LEG2: BUY NIFTY 5400 CALL @ 40

COST =95            

 RISK PER LOT = 4750

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=5495

LOWER BREAK GIVEN POINT=5105

TATASTEEL STRANGLE STRATEGY

 Our Tatasteel  strangle strategy given in post is giving the profit of Rs 4, contd. to hold....

TATASTEEL SHORT STRANGLE STRATEGY

FRIDAY  being a shy day for the market ,followed by a close of 3 days we are giving a short strangle strategy. This strategy is aiming to encash option time value.

SELL TATASTEEL 400 CALL @9

SELL TATASTEEL 400 PUT   @9

TOTAL RETURN=(9+9)*500=9000