Thursday 3 July 2014

Wednesday 2 July 2014

CALCULATION OF P & L IN OPTION

While it comes to calculation, there is thing we have to learn  how to calculate 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 (nifty call option or nifty put option), expiry or strike. It directly depends only on premium which trader selects while purchasing the option.

Tuesday 1 July 2014

HEDGE A CALL OPTION WITH A PUT OPTION ?

Sometimes an investment has made substantial gains, but you're not ready to sell the assets just yet. At the same time, you don’t want to risk losing the profit you’ll get by cashing in immediately. When you face this dilemma with call options, you can hedge your position with offsetting put options.
Calls and Puts
When you purchase call options on stock or another underlying security, you receive the right to buy shares at a designated price called the strike price. You can exercise your right to buy until the option expires, but you are not required to do so. Put options work exactly the same, except you get the right to sell a security instead of buy it. Suppose you buy a call and put option contract for the same stock at the same strike price. If the stock price increases, you would exercise the call to buy shares at the lower strike price, and then sell at market value, netting a profit. The call option is said to be “in the money.” The put option has no value, because you pay more to buy the shares needed to exercise the option than the strike price you are paid. However, if the price of the stock falls instead, the call option would have no value and the put option would be in the money.

Monday 30 June 2014

OPTION TRADING STRATEGIES : HOW TO USE THEM FOR MAKING PROFIT IN ANY MARKET SITUATION

 How to Use Option Trading Strategies in any Market Situation
Option strategies are implemented by combining one or more option positions and possibly an underlying stock position.
In other words, a trading strategy is a calculated way of using options singly or in a combination, in order to make a profit from market movements.
Option strategies can give you a greater profit with less risk compared with the traditional buying and selling of stock.
One vitally important thing to consider when investing is when to get out and how. An effective exit strategy needs to be decided upon in advance, and stuck to without allowing emotions to sway you.
There are many types of option trading strategies that can be applied, depending on your opinion, or ‘prediction,’ of which direction the underlying stock is going to move.
A guideline for picking the right stocks to go with the right options strategies is available by reading “Options Strategies for Different Stock Styles”. The various stock movements are taken into account – bullish and bearish – as well as major moves, or slower, moderate moves, in either direction - and a strategy that can be applied to each of these movements.

Friday 27 June 2014

JPASSOCIAT STRANGLE STRATEGY

Buy Jp assosiat 90 CALL @1.4       
Buy Jp assosiat 65 PUT   @ 1.4
COST =2.8
RISK PER LOT = 22400
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=92.8
LOWER BREAK GIVEN POINT=63.2
Pay off table:..

Wednesday 25 June 2014

Low Capital Needed In Option Trading as Compared To Stock Future

Option trading is a trader friendly kind of trading which allows the trader to find new ways of doing business. It has many strategies and the trader is allowed to choose any one of them or plan a strategy of his own master it and earn profit. Other trading such as stock trading and future trading does not support this feature and have their strict rules which must be followed to do business. Moreover, if recession occurs there is no way by which the trader may safe his money. He may lose all of it or his money may stick in the market.
One of the major benefits of option trading is that you can start trading with even low capital invested. Then use that profit to re-invest and earn even more money. So this trading style supports a small
business to flourish and is giving the new traders to trade without getting loans and selling their personal property to do business. While in future or stock trading sometimes the traders bears so much loss so as to leave the business or sell their personal properties to compensate the effect....

Thursday 19 June 2014

Index Vs Stock Option

Index and stock options are known as unique investment opportunities for all men and women who want to make it big in the investment market. However, there are certain peculiarities between index and stock options. 
Index Option 
Index as a type of investment trading is simply a list of number of various stocks that are quite similar to one another. Index option signifies the composite value of all the stocks in question.  in the Indian Stock market, index option is used to evaluate the progress of the Indian economy.  It is also used in determining the general overview of the stock market in a given economy.
Stock Option
Stock option is usually referred to as a legal contract which grants the contract owner the right to purchase or sell stock of a specific quantity at a particular set price before a specific date. Stock option is usually has a standardized term. It has the ability to pull sellers and buyers together in a fantastic manner.  Stock option usually has two main varieties namely; the call option and the put option.  Call option grants the owner the right to buy the stock at a fixed price over a fixed period of time, while put option grants the owner the right to sell the stock at a fixed price over a specific period of time. 
Well, having seen both index and stock option, one can easily find out that both of them also belong to the same category in the capital investment market.  Really, the index option is usually well known by almost every ordinary human person.... 

Wednesday 18 June 2014

COMPARISON BETWEEN CASH AND FUTURE TRADING

1.In the cash segment, one can pick up as many shares one wants starting from just one share but Futures, a trader cannot buy less than the lot size prescribed
2. From an investors point of he should invest in Cash Segment. Since Futures are a trading tool, the risk is also high to a large extent.
3. In Futures, a trader needs to pay 33% tax on the profit. In equity, it is a flat proportion of 10% (short term capital gains) if trading done is within a year and no tax if sold later a year (long term capital gains).............

Tuesday 17 June 2014

HOW TO PICK GOOD STOCK

In India the volume of investments has somehow depleted in the past 3 years. This market situation leaves extremely fragile scope for any bloopers as far as the common private investor is concerned. The intermittent slowdowns have brought the stock market to a situation where there is always a danger of a double dip; something which small traders and investors can hardly afford at this juncture. Hence, it is absolutely necessary for them to strategies and plan their tactics before making any investment decisions. And this is possible only when they know how to pick good stocks, based on serious and factual knowledge of the market, its history and its current trends.
How to Pick Good Stocks: Strategies and Contours
  • The most important thing to remember before making any kind of investment is the current financial scenario of the investment destination- whether it is bank accounts, fixed deposits or in our case; the stock market. These do not operate in a financial vacuum and are notorious for their illusive speculativeness and other malpractices. Reading, understanding, observing and internalizing market trends is an art- an art which can be perfected only after years of practice, patience and fortitude. It is no child’s play and small investors with no experience of stock trading can be easy target for frauds. Hence, it is extremely necessary that the investor keeps an eye on the share market, learns its operational norms, peculiar institutional behavior and uninsured risks. Only after the investor, with or without the help of professional advisors, executes this plan of action can he/she hope to make any headway in terms of profits.

Monday 16 June 2014

HOW TO MAKE OR LOOSE MONEY IN FUTURE TRADING

In Future trading one can buy any number of shares. In Futures, the trader buys a lot. The lot magnitude is set for every futures contract and it varies from stock to stock & also from company to company.
Margin payment:-
Buying a Futures contract one need not pay the entire value of the contract but just the margin. This margin sum is defined by the exchange. Let’s assume one buys a 1000 Futures contract of a particular company each share costing 50 Rs. This will sum to Rs. 50000 (1000 X 50 Rs). The trader need to pay only about 15% to 20% of that sum and this sum is called the margin amount. Assuming 15% the trader need to pay Rs. 7500 & not Rs. 50000
How to make or lose money:-...

Friday 13 June 2014

BENEFITS AND RISKS OF OPTION TRADING

You may be wondering  why would an investor want to get involved with complicated options, when they could just go out and buy or sell the underlying equity? There are a number of reasons such as:
  • An investor can profit on changes in an equities market price without ever having to actually put up the money to buy the equity. The premium to buy an option is a fraction of the cost of buying the equity outright.
  • When an investor buys options instead of equity, the investor stands to earn more per dollar invested - options have "leverage."
  • Except in the case of selling uncovered calls or puts, risk is limited. In buying options, risk is limited to the premium paid for the option - no matter how much the actual stock price moves adversely in relation to the strike price.
Now thing comes in our mind that if option given these benefits, why wouldn't everyone just want to invest with options? Options have characteristics that may make them less attractive for certain investors.

Monday 9 June 2014

UNITECH STRANGLE STRATEGY ROCKS....!!!!BOOK PROFIT

Book profit in Unitech 40 Call near 2 contd... to hold the put
Total profit =10200 from the strategy. 
Hope you have booked profit. 

Friday 30 May 2014

UNITECH STRANGLE STRATEGY

Buy Unitech 40   Call @.65
Buy Unitech 22.5 Put @.50
COST =1.15
RISK PER LOT =13800
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=41.5
LOWER BREAK GIVEN POINT=21
Pay off table:...

Friday 16 May 2014

ROCKING NIFTY BUTTERFLY STRATEGY...... !!!!!!!!

Our NIFTY BUTTERFLY STRATEGY is in huge profit ….!!!!!!!!!! Those who are looking for 100% return on capital can book it on Monday. Risky traders looking for 300% returns can hold it till expiry…
 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
For doing payment please  : JUST  CLICK HERE
For more further details please contact  : +919826586510

Friday 9 May 2014

IDFC STRANGLE ROCKS !!!!!!!!!! BOOK PROFIT

Book profit in IDFC 120 Call Near 6

IDFC 105 Put exit @ cost

Hope you have booked profit of 6000 per lot

If u r interested to get such 8-10 strategies Per month there is never before and never after Offer
20 % Discount on Option Strategy Pack valid only till 10 may 2014 Saturday
For more Details pls visit
http://www.richerconsultancy.com/option-strategy.aspx

Wednesday 7 May 2014

NIFTY BUTTERFLY STRATEGY

Buy 1 Nifty   6600 call @ 300
Sell 2 Nifty 7000 call @124
Buy  1 Nifty 7400 call @ 39
Total risk=4550
Upper break given point=7300
Lower break given point=6700
Pay off table:

Monday 28 April 2014

IDFC STRANGLE STRATEGY

Buy IDFC 120 CALL @3.40
Buy IDFC 105 PUT @ 2.70
COST =6.10
RISK PER LOT = 12200
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=126.1
LOWER BREAK GIVEN POINT=111.1
Pay off table>>>>>>>

Monday 21 April 2014

GREAT OPTION TRADING STRATEGIES:LOOK BEFORE YOU LEAP

In options trading, when you find a strategy that works or a particular stock that is doing well for you, it is easy to want to jump right in with both feet and everything that you have.  Doing this however, can result in major option trading losses and you need to be really careful if you are thinking about doing this. Seasoned options traders know that you never put everything you have into any one option. Diversity is the key to reducing your risk when trading and giving you a better chance to make a profit rather than large losses. Because option trading can be quite volatile, you never want to put too much into one area because things can change incredibly quickly so that something which might have been trending favorably for quite some time, can suddenly take a dive and if you are not watching, you run the risk of losing everything that you have....

Thursday 10 April 2014

TATAMOTORS STRANGLE STRATEGY ROCKS!!!!!!!!!BOOK PROFIT

Tatamotors strangle strategy
Book Tatamotors 430 call @14.50-15.
Total returns from the call =(15-9)*1000=6000

Tuesday 1 April 2014

TATAMOTORS STRANGLE STRATEGY

Buy Tatamotors 430 call @4.5
Buy Tatamotors 380 put @4.5
COST =9
RISK PER LOT = 9000
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=439
LOWER BREAK GIVEN POINT=371
Pay off table:...

Saturday 29 March 2014

HURRY....!!!!!!! NEW YEAR OFFER ON OPTION PACKAGE

"HAPPY GUDI PADWA & VERY HAPPY NEW YEAR...!!!!!"
(The Holy festival which marks the beginning of the New Year, new month and new day for Hindus)
New year offer....
10 % discount  on monthly package of option i.e 4500 for direct payment please visit ... http://www.richerconsultancy.com/payment-conditions.html
or call  +91-9826586510

Wednesday 26 March 2014

NIFTY CLOSES ABOVE 6600 F O EXPIRY TOMORROW

Equity benchmarks posted another fresh record closing high on Wednesday, though it was a volatile session with a narrow range ahead of expiry of March series derivative contracts on Thursday.. Positive global cues and rupee appreciation helped the market stay higher amid choppy trade., Holland also expects the market move post election to be more stock-specific than index-driven. On the global front, Asian markets closed higher following upbeat US economic data and easing concerns over Ukraine crisis. Back home, the Congress party announced its election manifesto today , Opposition Bharatiya Janata Party (BJP) will also release its manifesto next week. Media reports quoting unnamed sources that the party’s priorities in manifesto are jobs, investment, manufacturing and infrastructure...