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.....
Tuesday 23 April 2013
Wednesday 17 April 2013
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.....
Tuesday 16 April 2013
MISTAKES TO AVOID WHILE TRADING IN OPTION
5 Mistakes to avoid while trading in option
1. Not having a defined exit plan
2. Trying to make past losses by doubling up
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
Tuesday 9 April 2013
STRANGLE STRATEGY:CASH TIME
A short strangle gives the obligation to buy
the stock at strike price A and the obligation to sell the stock at strike
price B if the options are assigned. You are predicting the stock price will
remain somewhere between strike A and strike B, and the options you sell will
expire worthless.
By selling two options, significantly
increase the income you would have achieved from selling a put or a call alone.
But that comes at a cost. There is unlimited risk on the upside and substantial
down. This strategy is only for the most advanced traders who like to live
dangerously .
There are two break-even points:
·
Strike A minus the net credit received.
·
Strike B plus the net credit received.
PROFITS AND LOSSES IN THE STRATEGY:....
Wednesday 3 April 2013
OPTION STRATEGIES 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
CALCULATION OF PROFIT N LOSS IN OPTION TRADING
While
it comes to calculation, there are 2 things we have to learn – how to calculate
the break even point of an option and how
profits/losses are calculate. Let’s go with an example, nifty to understand better how
profits and losses are calculated in options trading. The lot
size of nifty is 50 shares in number irrespective
of call or put. The profit/loss does not depend on the type of call ,
expiry or strike price. It directly depends only on premium which trader selects
while purchasing the option....
Tuesday 2 April 2013
BOOK PROFIT IN NIFTY STRANGLE STRATEGY
Buy Nifty 5800 call @40
(sold at 88) and Buy Nifty 5700 put @ 76 (sold at 106) in last post. Net cost
was 196 now it is 106 ,Book profit of
(196-106)*50=4500 in the strategy given in
post.
Monday 25 March 2013
NIFTY SHORT STRANGLE STRATEGY
SELL 5800 Apr
call @ 88
SELL 5700 Apr
put @ 108
TOTAL RETURN=(88+108)*50=
9800
LOWER BREAK
EVEN POINT=5712
HIGHER BREAK
EVEN POINT=5808..
Saturday 9 March 2013
BOOK PROFIT IN IDFC STRANGLE STRATEGY
IDFC STRANGLE STRATEGY given on 1 march,
IDFC 160 call given @ 1.6 hope you have booked profit near 4.5 (i.e. profit of 3800) yesterday keep put contd… to
hold
Wednesday 6 March 2013
BOOK PROFIT IN IDFC STRANGLE STRATEGY
IDFC
STRANGLE STRATEGY given on 1 march, IDFC 160 call given @ 1.6
made a high of 3.6 today
you can book profit near 4.5, keep put contd… to hold
Saturday 2 March 2013
IDFC STRANGLE STRATEGY
LEG1: BUY IDFC 160 CALL @1.60
LEG2: BUY IDFC 130 PUT @1
COST =2.60
Total risk=5330
Return=unlimited
Pay off table:
Wednesday 27 February 2013
OPTION PLAIN VANILLA V/S SPREAD STRATEGIES
A
bull call spread is a type of vertical spread. It contains two calls with the
same expiration but different strikes. The strike price of the short call is
higher than the strike of the long
call, which
means this strategy will always require an initial debit. A bear put spread is
a type of vertical spread. It consists of buying one put in hopes of profiting
from a decline in the underlying stock, and writing another put with the same
expiration, but with a lower strike price, as a way to offset some of the cost.
Advantages
of strategies......
Wednesday 20 February 2013
BOOK PROFIT IN UNITECH BULL CALL SPREAD
Book profit in Unitech bull call spread strategy given on 15
feb 2013. Unitech 30 call made a high
of 2.80 and 32.50 call made a high of
1.25. Net profit of .55 (Rs 5500) on cost of 1 rupee. Hope u have booked the profit….
Saturday 16 February 2013
UNITECH BULL CALL SPREAD STRATEGY
LEG1: BUY UNITECH 30 CALL @
1.6
LEG2: SELL UNITECH 32.50 CALL @.60
COST =10000
RISK PER LOT = (1.6-.6)*10000=10000
MAX RETURN 14870
Pay off table:...
Tuesday 29 January 2013
SBI STRANGLE STRATEGY ROCKS !!!!! BOOK PROFIT
Book profit in SBI strangle strategy given in last
post. The net cost of strategy was 55,we have booked call around 59.85
today ,book SBI 2450 put @ 18 so net profit
in strategy becomes around 20 .
BOOK PROFIT IN SBI STRANGLE STRATEGY
SBI 2500 call
given @ 25 in
last post has made high of 59.85 today .Book some profit Near 24.85 and keep
holding put
.Pls up the form
------> to Get Option Tips On mobile.........
Thursday 24 January 2013
SBI LONG STRANGLE STRATEGY
LEG1: BUY SBI 2500 CALL @25
LEG2: BUY SBI 2450 PUT @30
COST =55
Total risk=6875
Return=unlimited
Pay off table...
Wednesday 16 January 2013
WHAT IS ARBITRAGE TRADING
Arbitrage
Opportunities is a list of stocks which gives a trader an opportunity to use
the price difference of stocks in the two exchanges BSE / NSE to make quick
profits and thus perform arbitrage.
This list gives you Current Market Price of the stocks on BSE & NSE, Change
& % Change in the price as compare to previous close.
Monday 7 January 2013
Book Profit in Petronet Plain Vanila Option Strategy
Petronet 170 call given @ 1.9 in last post has made high of 4.6 today.Book some profit Near 5.5 and keep SL cost.Pls up the form ------> to Get Option Tips On mobile.........
Wednesday 2 January 2013
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
|
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