New positions

As expected Nifty Closed marginally above 5200. Remember we had short sold Dec 5200 ce.

I have the following open position :

NTPC 230 CE @ 8.50

&

NTPC 235 CE @ 6.00

NTPC looks good for 250 spot . A close above 232 is positive. SL for NTPC 226 Spot.

New postions for Jan 2010

Be on a look out for initiating short positions on 4600PE Dec Strike @ 50-60

2 Lots @ 50-60 & 2 lots if premium value reaches 70 - 80

Open positions

I have the following open positions :

Short sold CE 5300 @ 54.5 & Short Sold CE 5200 @ 86 & 26

Range bound startegy Dec Expiry

If you feel spot Nifty will end above 4900 & 5400 you can execute the following STRANGLE STRATEGY :-

Strategy					Profitable		Total Inflow	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-31-Dec-2009-CE OPT-NIFTY-31-Dec-2009-PE	Sell Sell	5,200.00 5,100.00	at at	83.50 108.50	4,908.00	5,392.00	9,600.00	9,600.00	Unlimited

Follow up post - 22 Nov 09 recommendations

As mentioned on 22 Nov 09

"One can initiate short positions in the following puts & calls :-

2 lots 4700 PE Dec Strike @ 50-60
&
2 lots 5400 CE Dec Strike @ 50-60"

Both positions have been initiated post 22 Nov 09.

Lets wait or expiry or a suitable time to exit.

Nifty Dec 2009 Strike Strategy

One can initiate short positions in the following puts & calls :-

2 lots 4700 PE Dec Strike @ 50-60
&
2 lots 5400 CE Dec Strike @ 50-60

Also initiate short positions in 2 lots each as and when premium reaches 90-110+ level :

4700 Dec PE Strike trades @ 85-110+
&
5400 Dec CE Strike trades @ 90-110+

Will be following up on the strategy & will try to initiate open position myself.

Correction in SL

Stop Loss should be Spot nifty closing below 4940 (61.8 % retracement) if any one has taken short position in Nov PE 5100 @ 100+.

Nifty has been closing in a DOJI Pattern for 2-3 days which indicates indecisiveness . Market may break out either upwards or downwards very fast.

A matter of worry is Nifty is unable to close above 5060 which is 80 % retracement level indicating 5000 level in most probability will be breached if market unable to sustain above 5060 level.

Do not short any call or put at the moment.

Risky NOV Expiry Naked Strategy nOV

If u are GAME & READY to take RISK then

Short Sell Nov 5100 PE @ 100 to 130 + Range

STOP LOSS : SPOT NIFTY CLOSING ABOVE 5250 LEVEL ON CLOSING BASIS

Range Bound Expiry Strategy

Strategy Profitable if Nifty closes between 4907 and 5192 on EXPIRY

Strategy					Profitable		Total Inflow	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-26-Nov-2009-CE OPT-NIFTY-26-Nov-2009-PE	Sell Sell	5,100.00 5,000.00	at at	47.45 45.00	4,907.55	5,192.45	4,622.50	4,622.50	Unlimited

Stop Loss Triggered

Today all my short positions were squared up at 4700 Spot Nifty.
A bad start to this months trading.
But we must also be prepared to take a HIT..... RIGHT.

But I feel it is also the right time to pick up / accumulate a few good stocks (Blue chip / A category ) at EVERY FALL .

Open Postions as on DATE ................?

Any one holding short positions in PE 4800 should maintain stop loss @ Nifty 4700 spot on closing basis.

I also have the following short positions : -

Nifty 4700 Pe @ 80-90 & Nifty 4900 PE @ 185 - 205

Any one wishing to short safe can do so by taking short positions in Nifty PE 4600 @ 50-80

We have seen 4-5 days of SWIFT CORRECTION.

It is time now for the market to make a COME BACK probably in a day or two.... Very LIKELY TOMORROW.

Nifty Options Strategy - Expiry Special

Guys yesterday I had short sold Oct Ce 5100 @ 70 Today it is @ 27.

In my Opinion one can Short sell Nov PE 4800 BETWEEN 85 - 115 (4 Lots) either Tomorrow or in the coming week as and when the price is breached.
1 lot @ 85.... 2nd Lot @ 95 .....3rd Lot @ 100 ...... 4th Lot @ 110 +

Stop Loss : Square up all positions if NIFTY breaches / closes below 4700 (Spot Price)

Review of Oct 13 Post

On Oct 13 the following was advised :

"Any one not willing to take risk may liquidate Oct 5000 ce & Oct 5100 ce at intraday price 100-120 & 65-75 while Oct 5200 ce may be held till expiry or exited at a later date."

On 14 th Oct pls check all had the opportunity to exit at the above price .

Even as on Today 17 th Oct : Oct Ce 5000 , Ce 5100 & Ce 5200 is 158, 91 & 46 respectively.

We had short sold Oct Ce 5000 , Ce 5100 & CE 5200 @ 190, 140 & 72. AS on 14th Oct 09 one had opportunity to exit @ 120-130,70-75 & 30-35.

I am on a look out to short sell 5200 & 5100 ce when market / nifty trades around 5220 level.

Review of Oct 8 Posting

On Oct 08 the following was advised :

"Any one not willing to take risk may liquidate Oct 5000 ce & Oct 5100 ce at intraday price 100-120 & 65-75 while Oct 5200 ce may be held till expiry or exited at a later date."

On Oct 09 every one had ample opportunity to square up the short positions in Oct 5000 ce & Oct 5100 ce at intraday price 90-110 & 45-65.

Since the market has recovered one can target short selling Oct 5200 & Oct 5300 @ 75-90 & 60 level in a ratio of 1 is to 3 lot if the market moves up further.

Count ur Profits

Hi Guys I am back after to work....... after a extended leave !

Any way Guys On Sep 17 the following was suggested -

Short sell Oct 5100 @ 130-150
Sell Oct 5200 @ 65 - 80

& if Willing to take a GREATER RISK ( Though risk to reward tilted towards a GooD REWARD)
Then SHORT SELL OCT 5000 CE @ 190-210.

Check out Now :

Oct 5000 @ 126
Oct 5100 @ 80
Oct 5200 @ 48

So GUYS are u Counting ur PROFITS.

Any one not willing to take risk may liquidate Oct 5000 ce & Oct 5100 ce at intraday price 100-120 & 65-75 while Oct 5200 ce may be held till expiry or exited at a later date.

After liquidation will eye short selling 4800 pe at the right time . Target will be short selling around 100-120. May get the price in the intraday move.

HAPPY EID TO ONE & ALL IN ADVANCE

MAY THE ALMIGHTY BLESS ALL OF US........

My apologies to all as I had not been able to update my blog on time this month (It was already stated in the beginning of this MONTH).

Will try to post regularly from next month .

Thanking you all GUYS

Bye & enjoy the FESTIVE WEEK AHEAD......

Nifty Risky but Rewarding Strategy- OCT Expiry

Due to the holy month of RAMADAN I had not been able to update my blog on time.
Let us recap :

With a intraday correction in nifty of around 50-100 as already indicated in my last post on 10 Sep 09 Short sold CE 4900 & 5000 was to be squared up at 25 & 40 respectively.

Now if ur are willing to take risk then I would suggest : -

Short sell Oct 5100 @ 130-150
Sell Oct 5200 @ 65 - 80

& if Willing to take a GREATER RISK ( Though risk to reward tilted towards a GooD REWARD)
Then SHORT SELL OCT 5000 CE @ 190-210.

Let me also disclose that I have bought 200 qty 4900 PE @ 32 TODAY ( Though instead of 4900pe I should have bought pe 5000 @ 50) as I am expecting the nifty to close between 4800-4900 . I will square off as soon as I get 20-30 odd profit in possibly intraday move or on downward closing. I could also loose 32 points but it could also prove to be jack pot.

Nifty Short selling

Nifty Options short strategy has been yielding money on expected lines ..... Every one following the blog must be aware of the same........ Jai Ho !

As already posted on 5 Sep that all short pe of strike price 4300 & 4400 will be liquidated at every rise above 4700 ...... I had done so .........sold / squared up at 10 & 16 respectively.

Also advise in advance will short sell 4900 ce & 5000 ce on rise.
Today was an excellent day to short both ce 4900 & 5000.
So any one who has not taken the position may short sell 4900 ce & 5000 ce if spot nifty reached any where near 4870-4890 levels in intraday. But be cautious....... Markets are reeling under profit booking on every rise & visibly looks tired thus I am thinking to short both ce 4900 & 5000.

As already discussed earlier I have initiated short positions after liquidating my short pe in CE 4900 @ 85 & CE 5000 @ 60 ( today closing 63 & 34) will try to cover up on any market correction of 50-100-150 points (Possibility is building up for Sure)......... Lets see or cover my short ( i.e SL) CE 4900 only if Spot NIFTY closes above 4900 on a closing basis .

On any correction will be liquidating / squaring off ...short CE 4900 & 5000 & fresh short in PE 4500 or 4600 as per risk to reward appetite will be initiated....... Pls be on a look OUT GUYS

Nifty Strategy

The SSS ..... That is => Short Strangle Strategy
Will be profitable if u believe that NIFTY will expire between 4630 and 5050:

Strategy					Profitable		Total Inflow	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-24-Sep-2009-CE OPT-NIFTY-24-Sep-2009-PE	Sell Sell	4,900.00 4,800.00	at at	63.00 104.20	4,632.80	5,067.20	8,360.00	8,360.00	Unlimited

What I did the PREVIOUS week .... 31ST Aug - 4 Sep 09

As already posted earlier ( 1st Sep 09) I had stated that I will be liquidating my short potion on CE 5000 & 4900 & short position will be initiated on PE 4300 & 4200.


Had short sold CE 5000 @ 60 & CE 4900 @ 85 Also advised to Short sell CE 4800 @ 120+
( Posted on 25 Aug 09)

Result :

One had ample opportunity to square off CE 5000 @ 20-30 & CE 4900 @ 30- 40 CE 4800 @ 60-70

Profit u could have earned if u had traded like me :

In CE 5000 => 1 LOT 50 X 40 = Rs 2000/-
In CE 4900 => 1 LOT 50 X 40 = Rs 2000/-
In CE 4800 => 1 LOT 50 X 60 = Rs 3000/-

I had in fact short sold PE 4300 @ 50 & 4400 @ 70 (Strategy Posted on 1 Sep09)

Now PE 4300 @ 23 & PE 4400 @ 38................... (Both position as of now are giving me Rs 3000 per 1 lot)

In the coming week as & when the market crosses 4700 will square off PE 4300 & PE 4400 @ 10-15 & 20-30 respectively & will be in look out for fresh short positions in CE 4900/5000/5100 ( But will be CAUTIOUS NOW before taking short position) .

Every one who had been following my blog had ample opportunity to execute nearly all my calls at the recommended rates I personally intended to trade.

My strategy

I had already told in my earlier post that I will utilize every correction to short NIFTY 4200-4300-4400 puts ......

I already have short sold 5000 & 4900 calls since 26-27 Aug in the range of 60/90.
Premium has already eroded by 50 % to around 30/55 levels.

Today on 02 Sep 09 I had liquidated 2 lots of 5000 ce @ 34 (Short sold earlier at 60 level)
Short sold 1 lot 4300 pe @ 50 (Fresh position)
Expect the market to fall ... tomorrow ..... & with further fall will short sell 4300-4200 pe at around 60-70-80 level & square up calls of 4900 & 5000 strike (which I had short sold) .

Lets see what is in STORE...........!!!!!!!!

What to expect Tomorrow 02-09-2009 ?

Nifty has closed the crucial 4625 level. This is the trend maker & breaker level.
Any successive close below is a confirmation of very short term trend reversal.
If the NIFTY trades above & closes above 4625 it will be + ve for the markets & short term uptrend will be intact.

Remember what I had said on 31 Aug 09.

Q outing the same again .......

" When all the experts on TV , FORUM, PAID SITES NEWS PAPERS are predicting a rally beyong 5000 I will try to Short sell 4900,5000 , 5100 & 5200 Calls when the spot nifty trades in between 4810-4850. Although I will be closely monitoring my positions & my stop loss will be say for 4900 call .... 4900+premium amt ( rate at which short sold) = Spot Nifty ... like wise stop loss for 5000/5100/5200 calls

Let the experts be on one side I will be on the OTHER side & hope the ALMIGHTY will prove the heard wrong.
I always bear in mind that " ALWAYS EXPECT THE UNEXPECTED FROM THE MARKET"

Markets have corrected and proved the majority of the analyst WRONG.

If the Nifty trades below 4550- 4560 level ...........We may very well see 4500 - 4480 -4460

Nifty Views for 31 Aug 09 to 4 Sep 09

NIFTY LEVELS : R1 - 4800 R2 - 4830 R3 - 4860 ..... S1 -4650 S2- 4630 S3 - 4600
Trigger level 4700

RAMZAN MUBARAK

Since the holy month of RAMADAN has started I will not be having time to actively post my views or strategies during the month of Sep 09.

But I will try to post articles from time to time.

Bye Guys & happy trading.

Nifty May Touch 4850 Level

Nifty May Touch 4850 Level in the comming weeks. It may sooner than latter.All the (F & O ) indicators SUGGEST a sustainable rally of up to 150 odd points with support between 4600 -4700.
Technical factors such as inverted hammer pattern also suggest the same.

Traders are writing 4900 & 5000 calls as they do not expect the index to close / move beyond 4900 level.

The upmove is expected as the average trade in sep futures was around 4700 level though the nifty dipped to the intraday low of 4650 level which suggest that there was no panic in the market though the nifty touched 4650 level.

The closing of 4732 was achived mainly due to short covering of index heavy weights such as RIL, SBI etc.,

But ,

When all the experts on TV , FORUM, PAID SITES NEWS PAPERS are predicting a rally beyong 5000 I will try to Short sell 4900,5000 , 5100 & 5200 Calls when the spot nifty trades in between 4810-4850. Although I will be closely monitoring my positions & my stop loss will be say for 4900 call .... 4900+premium amt ( rate at which short sold) = Spot Nifty ... like wise stop loss for 5000/5100/5200 calls

Let the experts be on one side I will be on the OTHER side & hope the ALMIGHT will prove the heard wrong.
I always bear in mind that " ALWAYS EXPECT THE UNEXPECTED FROM THE MARKET"

If u all would recall that on 24 th Aug 09 I had posted the following -

"Sep 09 Option premiums are at a premium.While premiums will drop post settlement, the spread risk -reward ratios may actually be better now than 4 secession down the week"

& On 25 Th Aug 2009 had Short sold Sep 5000 ce @ 60.35 at 2.30 pm

Nifty was around 4670-4690

After Expiry on 28 Aug 09 NIFTY @ 4732
Though nifty has risen almost 50 points the premium has not risen in value in fact 5000 Sep CE is @ 59.50 It is also true for 4800 & 4900 CE.

Hope it is clear what I ment to SAY ON 24 Aug 09

As advised if any one had short sold 5000 ce @ 60 -63 , 4900 ce @ 90-100 or 4800 ce @ 120-130 on the next /same day as published on the blog then............................

On 25 Aug all Could have booked profits ---- 5000 ce @ 41-45 , 4900 ce @ 64-70 or 4800 ce @ 95-100

Since I am willing to take risk I am holding my short positions in 4900 ce & 5000 ce @ 90 & 60 (2 lots each ) which I may square up at any moment when I am convinced that I have been caught on the wrong foot. I will try to post the same as and when I do.

Summary of all AUG 09 Calls POSTED FOR THE BENEFIT OF ALL VISITORS OF THE BLOG

1ST STRATEGY Post on : 2 Aug 09

Total = 15000/- profit in the strategy

2nd BULLISH STRATEGY Post on : 4 Aug 09

Total = 2100/- loss in the strategy

3nd STRATEGY Post on : 9 Aug 09

Net profit in the strategy = Rs 3300/-

4 th STRATEGY Post on : 9 Aug 09

Net Profit Rs 5750/- profit in the strategy

5th BULLISH STRATEGY Post on : 9 Aug 09

Net Profit Rs 2400/- profit in the strategy

Total Net PROFIT For the Month : 24,350/-

Hope all enjoyed the PROFITS.........................!!!!!!!!!!!!!!!!!!!!!!

DETAILED Review of all calls posted in the month of AUG 09

Let us review of all the calls & strategies posted in this blog for the month of AUG 09 :-

1ST STRATEGY Post on : 2 Aug 09 Advised to

Short sell 4700 Aug 09-CE @ 151.20
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Profit of Rs 7550/-
&
Short sell 4600 Aug 09-PE @ 149
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 7450/-

Total = 15000/- profit in the strategy.

2nd BULLISH STRATEGY Post on : 4 Aug 09 Advised to

Buy 4700 Aug 09-CE @ 154
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Loss of Rs 7700/-
&
Short sell 4800 Aug 09-CE @ 112
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 5600/-

Total = 2100/- loss in the strategy.

3nd STRATEGY Post on : 9 Aug 09 Advised to

Short sell 4500 Aug 09-CE @ 133
Closing at expiry (27.08.09 ) 185 ..... implies 50 ( 1 lot) x 151 = Rs 9250/-
Cost price: 50 ( 1 lot) x 133 = Rs 6650/- , Net Loss : 9250-6650= Loss of Rs 2600
&
Short sell 4400 Aug 09-PE @ 118
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 118 = Profit of Rs 5900/-

Net profit in the strategy = Rs 3300/-

4 th STRATEGY Post on : 9 Aug 09 Advised to

Short sell 4700 Aug 09-CE @ 63.00
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 151 = Profit of Rs 3150/-
&
Short sell 4200 Aug 09-PE @ 52.00
Closing at expiry (27.08.09 ) 0.05 ..... implies 50 ( 1 lot) x 149 = Profit of Rs 2600/-

Total = 5750/- profit in the strategy.

5th BULLISH STRATEGY Post on : 9 Aug 09 Advised to

Buy 4500 Aug 09-CE @ 133
Closing at expiry (27.08.09 ) 185 ..... implies 50 ( 1 lot) x 185 = Rs 9250/-
Cost price: 50 ( 1 lot) x 133 = Rs 6650/- , Net Profit : 9250-6650= Profit of Rs 2600
&
Short sell 4600 Aug 09-CE @ 94
Closing at expiry (27.08.09 ) 88 ..... implies 50 ( 1 lot) x 88 = Rs 4400/-
Cost price: 50 ( 1 lot) x 94 = Rs 4700/- , Net Loss : 4700-4400= Loss of Rs 200

Total PROFIT in strategy = Profit of Rs 2600.00 - Loss of Rs 200.00 = Profit of Rs 2400

Trade executed today

The following trade has been executed today 25/08/09 :

Short sold Sep 5000 ce @ 60.35 at 2.30 pm
Margin blocked : 12,500/- per lot.
Total 2 lots executed.

Will short sell another 2 lots (Sep 5000 ce) at the range 70-80 if the opportunity arises.

Lets see ........................................................................

Squared off my previous position as given below :

Had short sold Aug 4300 pe @ 30 (refer to my earlier post dt 21/08/09)
Today squared up at @ 1.45

Risky NIFTY Options Strategy for Sep Strike

Sep 09 Option premiums are at a premium.While premiums will drop post settlement, the spread risk -reward ratios may actually be better now than 4 secession down the week.

Therefore I would try to execute the following trades this week (keep an eye on any upmove intraday ) --

Short sell 4900 call at the range of 100+ (Now it is @ 77)
Aprox margin money req - 16000/-
Short sell 4800 call at the range of 120+ (Now it is @ 108)
Aprox margin money req - 21000/-

It will be much safer option to short sell 4900 call @ 90-100+

When the markets correct we will focus on short selling put option & settle for a short strangle with a focus on range bound strategy.

Nifty future levels for : 24th Aug 09

Nifty future levels for , 24th Aug 09:

Resistance : R3 - 4738, R2 - 4650, R1 - 4590,
Trigger : 4490,
Support : S1 - 4460, S2 - 4340, S3 - 400.

My VIEW on Nifty

Today Nifty has closed to a very trick level @ 4528

Markets could move up if the index closes above the supply zone 4530 to 4560 . If the market is not able to absorb the supply another short correction is on the cards.

Lets hope for the best

Option Decay

Taking advantage of OPTION DECAY concept (F & O since expiry is on 27/08/09) I have executed the following trade Today 21/08/09 :

Short sold 4300 Strike put @ 30.00 Time 12:27 PM
Margin money blocked per lot : 19,000/-
Todays Closing : @ 9.95

Short sold 4400 Strike put @ 25.25 Time 03:18 PM
Margin money blocked per lot : 19,000/-
Todays Closing : @ 24

Anger is our BIGGEST enemy

Thought : Worth Sharing LOVE HAS NO LIMIT......

While Dad was polishing his new car,
his 4 yr old son picked stone & scratched lines on the side of the car.
In his anger, Dad took the child's hand & hit it many times, not realizing he was using a wrench.

At the hospital, his child said "Dad when will my fingers grow back?"
Dad was so hurt.

He went back to car and kicked it a lot of times.
Sitting back he looked at the scratches, child wrote "I LOVE YOU DAD"

Anger and Love has no limits...

Likewise we also need to control our emotions while trading in the stock market . Most of us may have experienced that after a successful trade we may randomly increase the frequency or the traded qty of trade ...... Like wise after a loss making trade we also do the same ..... the loss weighs heavy on our mind & in fit of uncontrollable emotional bust with the object of recovering losses .... (Read : to take revenge on the markets) we take a wrong decision (increasing trading vol, risky trade with risk to reward heavily tilted towards risk etc.) often leading to heavier losses.

Emotions prevents us from maintaining DISCIPLINE which is very vital to sustain in this highly volatile stock market.To me it is one of the most important factor to be considered while trading ..... CONTROLLED EMOTIONS

Week Ahead : 17 th to 21st Aug 09 THOUGHTS

Bullish formation on Nifty. Nifty Weekly Supports 4375 -4300, Weekly Resistances 4720-4800.
Nifty POSSIBLY strong above 4600 & weak below 4500 for the week.
Trade with STRICT STOP LOSS.

Week : 10 th to 14th Aug 09 REVIEW

Nifty traded weak during the start of the ( 1st 1-2-3 days) week. As already cautuioned u all on 12 th Aug that NIFTY is seeking direction ..... & on Wednesday saw a sharp intraday recovery from 4360. 13 th Aug saw a GREAT CLOSING , while on Friday Nifty was unable sustain above 4600 resistances.

Nifty

Trade with caution .... Feel markets are seeking for direction.Do not trade with volume & APPLY STRICT STOP LOSS.

Will review all positions at expiry.

NIFTY Unpredictable

Why not use the opportunity to invest in selected stocks in a systematic manner ?
Though the WORLD markets are up we ended in RED.
Any dip to around 4250-4300-4350 may be an opportunity to sell puts .
REMEMBER the markets will always prove the MAJORITY of us wrong.

Options for U

Bullish Strategy With LOW Risk
Trade with this Strategy if U are bullish on the MARKET & take position with limited RISK :

Strategy					Profitable Above	Total Cost	Max Profit	Max Loss
Bull Call Spread
Contract	Act	Strike	At	Prem
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-CE	Buy Sell	4,500.00 4,600.00	at at	133.00 93.30	4,539.70	1,985.00	3,015.00	1,985.00

Another Range bound strategy

				Profitable		Total Inflow	Max Profit	Max Loss
Act	Strike	At	Prem	Above	Below
Sell Sell	4,700.00 4,200.00	at at	63.00 52.05	4,084.95	4,815.05	5,752.50	5,752.50	Unlimited

Option Strategy - NIFTY

If U feel the Market will be RANGE bound between 4149 TO 4750
A strategy for U :

Strategy					Profitable		Total Inflow	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-PE	Sell Sell	4,500.00 4,400.00	at at	133.00 117.55	4,149.45	4,750.55	12,527.50	12,527.50	Unlimited

My Strategy WILL be : Tomorrow the market may open with a GAP UP, What ever be If the market is UP execute the call option ... if DOWN then execute put option to increase your leverage. Ideal if the market goes down sell the put & wait for the market to recover to sell the call.

If U are Bullish then : Options Startegy for U

Strategy					Profitable Above	Total Cost	Max Profit	Max Loss
Bull Call Spread
Contract	Act	Strike	At	Prem
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-CE	Buy Sell	4,700.00 4,800.00	at at	154.15 112.00	4,742.15	2,107.50	2,892.50	2,107.50

Good MUTAL FUND Picks for S I P

I would personally invest in the following Mutual Fund Schemes through SIP.

1> Reliance Regular Savings Scheme
2> DSPBR Equity
3> HDFC 200
4> Birla Front Line Equity
5 > Sundaram Select Mid cap

So if u are intending to invest 10,000 p.m then invest 2000 in each of the above mentioned schemes.

A BLEND of Front Line & Midcap Stocks

Option Trading Strategy if U Feel NIFTY will trade between 4300 to 5000 this MONTH

Strategy					Profitable		Max Loss	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-27-Aug-2009-CE OPT-NIFTY-27-Aug-2009-PE	Sell Sell	4,700.00 4,600.00	at at	151.20 149.00	4,299.80	5,000.20	UNLIMITED	15,010.00	Unlimited

Understanding options the EASY WAY

Beyond all the 'hype' what is it that makes option trading so good?

This is a question that I wish more people would ask, but the thing is not too many people know they even exist!

The main reason that I love option trading is that options provide the opportunity to turn a small or modest amount of money into a large amount of money quickly!

How is this possible you might ask?

Well before I get into the 'how' that let me show you exactly 'what' options are.

Options are simply 'contracts' that give the buyer the right or choice (but not the obligation) to buy or sell shares in a particular company, at an agreed price, on or before a set date.

Now the thing is, as an option trader I am not interested in buying or selling stocks, I am only interested in buying and selling the options on stocks.

I want to buy an option for one price and then onsell it to someone else for a higher price and make a profit before the option expires.

Now whether or not I am able to do this depends on two main things:

1) Whether the underlying stock (the stock that the option is concerned with) goes UP or DOWN in price.

and

2) The type of option that I have bought.

Now, there are 2 types of options, CALLS and PUTS.

Call options give us the right to BUY shares in the underlying stock.

PUT options give us the right to SELL shares in the underlying stock.

As I said before, we are not interested in buying or selling the underlying stock, only in making a profit by buying the options (on a stock) and then onselling those options to someone else for a profit.

However, the only way we can make a profit is if the option itself increases in value.

So What makes options go up or down in price?

CALL options increase in value when the underlying stock goes UP.

PUT options increase in value when the underlying stock goes DOWN.

This may sound confusing if you are new to option trading, but basically what we want to do is to buy CALL options on a stock when we think it is about to go UP in price or buy PUT options if we think the stock is about to go DOWN in price.

If we are right and the stock moves in our desired direction, UP for CALLS or DOWN for PUTS, we will make money.

The concept is really quite simple once you accept that it is possible to make money whether the underlying stock moves UP or DOWN.

Now here's the thing that makes option trading so appealing.

Options only cost a fraction of what it would cost to buy the underlying stock itself and a small move in the price of the underlying stock, creates a much larger move in the price of the option by 10 times to sometimes 100 times!

Interesting Option Trading Strategies

• Vertical Credit Spread: Where you profit from a stock staying above or below a specific price level,and also enjoy the benefits of the time decay of option premiums.

• Butterfly: A limited risk strategy that gives you BIG profits when the stock ends at or near your price on expiry.

• Iron Condor: Profit from the time decay of options and limit your exposure, with this neutral strategy.

• Directional Trades: Buying Calls and Puts in fast moving stocks . When the stock moves quickly in the right direction, this high risk / high reward strategy pays off.

• Straddle / Strangle: Profit from substantial and fast price movements in either direction.

Time decay of options

I had come across the term TIME DECAY OF OPTION.
It was a interesting concept.Actually with time the premium value decreases with time.It was interesting because almost 70 % of the times I had bought naked options ( put or call) the value eroded with time ( towards expiry) & it would become worth less.

So guys why not short sell out of money options near expiry week & mint money. Though the return are not so attractive as one would expect of the stock market but are relatively very safe & yearly returns would be 50 to 100 % .

There is also a emotional side also : -

Most of us may have encountered that when you buy out of money put / call at any price say -10,15,25,30...80,100 & so on & the underlying is not near the strike price the price diminishes to 20 - 05 paisa only infront of our eyes at expiry.

But now GUYS reverse your emotions short sell & as the price of option falls towards 5-10 paise near expiry you will be enjoying.

Will be posting my LIVE options trading

Come track me & trade if u WISH

Follow up on yesterdays call.........

Due to gap down opening could not execute yesterdays recommendations at the recommended price , However bought the call & put  at the following prices .......

Bought Nifty april 3600 call  @ 8.75 ( Todays closing was at 34.50)

Bought Nifty april 2700 Put @ 14.00 ( Todays closing was at 8.80)

Result :  Rs 2165 (closing value) - Rs 1137.5 (Invested amt) = Rs 1027.50

              Gain of Rs 1027.50 BY investing Rs 1137.50 in a Single Day

               

Your Choice PAL

If u wish u can take the following positions in Nifty April Expiry -

Buy 2700 put @ Rs 7-11

With

Buy 3600 Call @ Rs 12-16

 

Hi ,

Only fools make money in the stock market & the smart people bite the dust or should I say PRETEND TO MAKE MONEY .