OPTIONS STRADDLE STRATEGY

OPTIONS STRADDLE STRATEGY

Buy both Call and Put with same strike price and same expiry

  Example: 

 Buy May6800CE@ 315

 Buy May6800PE@ 262

Advantages

• Limited Risk
• Unlimited Profit

Dis-Advantages

• Premium Decay when market neutral

CREDIT SPREAD

Credit Spread is limiting the risk of options trader

It is Combination of buy lower strike price derivative and sell higher strike price derivative with
same expiry date.

EX:     1.  CREDIT CALL SPREAD


               SELL 6200CE@ 132 X 50 =  Rs.6600

                 BUY 6300CE@    74 X 50 = - Rs.3700

                                     NET CREDIT OF Rs.2900


         2.CREDIT PUT SPREAD


               SELL 6400PE@  150 X 50 = Rs.7500

               BUY 6300 PE@    92 X 50 = Rs. 4600

                                      NET CREDIT OF Rs.2900



                                                         

INDIAN TRADERS LIFE CYCLE

Hi Friends as per my knowledge many Indian successful trader life cycle is

7:30 am---           Update Asian Markets (Shanghai,Nikkei,Hong Seng..)

8:30 am...            Update SGXnifty and Economic news and focus on today's results

8:45 am...            Watch the trading system for OI and prepare today's trading stocks or                                     derivatives

9:00 to 9:08 am.Observe the Pre Open Chart and Find High Volume stocks and Top                                            traded derivative

9:15 am              Do Trade with your prepared stocks or derivatives with Strict Stop loss

1:30 pm .....        Update European Markets (FTSE,CAC,DAX.....)

3:20 pm.....        Check for Closing and holding stocks of derivatives

3:30 pm...          Market Closed

7:50 pm....        Update US markets and news about your holding stocks or derivatives

## If you find more you can send to niftyoptionspicks@yahoo.com

Happy Earnings

Thanks and Regards
http://ow.ly/rvHSo

LONG PUT FOR BEAR MARKET/DOWNTREND

Long Put

       Buy  a Put when Market is Bearish,Risk is Limited

         and Reward is Unlimited. Increase in volatility helps

         position, time decay is only hurt the position

       Example:

        Now Nifty@6345

       Buy Nifty14FEB6100PE@30

       If Nifty is BEARISH due to RBI rate hike and negative global cues

       Nifty touched 6100 in Feb Series your profit would be 

  

       strike price plus premium paid

       Profit is 6345-6100 = 245 + 30 = 275 x 50 = 13750

       Risk is premium paid that is 30  x 50 = 1500

YOU CAN APPLY THIS OPTIONS STRATEGY ON STOCK OPTIONS ALSO

LONG CALL FOR BULL MARKET

Long call

Buy  a call when Market is Bullish,Risk is Limited

         and Reward is Unlimited. Increase in volatility helps

         position, time decay is only hurt the position

          Example:

        Now Nifty@6182

       Buy Nifty14Jan6400CE@12

       If Nifty is Bullish due to global data and 2014 elections If

       Nifty touched 6600 in Jan Series your profit would be 

  

       strike price plus premium paid

       Profit is 6600-6400 = 200 + 12 = 212 x 50 = 10600

       Risk is premium paid that is 12  x 50 = 600

YOU CAN APPLY THIS OPTIONS STRATEGY ON STOCK OPTIONS ALSO

TIME SPREADS

Time spreads are depends on time decay but gives us fixed monthly income
on low volatility index or stocks. If you trade for profit without loss, Yes
you can choose Time spreads.
         Long a call with Next month expiration date and short a call with Near
month expiration date.

Example:      Now Nifty @ 6300

                        Long 1 NIFTY14FEB6700 CALL @ 35
                       
                        Short 1 NIFTY14JAN6700 CALL @ 25

                                                  Net Debit    :  10

1st week  20 Nifty@6300

2nd week 15 Nifty@6400

3rd week 10 Nifty@6500

4th week 0.05 Nifty@6600

If Nifty touch 6600 at end of Jan series then Jan short call should be 0.05 so profit is Rs.24.95 per lot
that is 24.95x50= Rs.1240, so this is Risk Free call and guarantee call with 99% accuracy call..

US FED QE TAPERING IMPACT ON INDIAN STOCK MARKET

US FED QE TAPERING IMPACT ON INDIAN STOCK MARKET

After the US Federal Reserve announced tapering of quantitative easing from January.

There are concerns that the tapering would result in depreciation in the Indian currency and lesser FIIs inflow, the main driver of rally in the Indian equities.

The US Federal Reserve has cut monthly quantitative easing by $10 billion to $75 billion from January and gave hints that the interest rates will be hiked in 2015.

Major Impact on Indian tech companies  Infosys, wipro, TCS and Techmahindra. These companies 
shares rose due to depreciation in the Rupee.

Infosys crossed 2 lakhs crore market capitalization on Thursday. But Indian stock market become 
strong after RBI governor keep policy rates unchanged.