Future-Option Combo strategy for almost risk free profits.

[nareshch]

If I have to watch weather trade would be profitable or lossmaking why I should look for heading ? Why should I not s/l if I have to sit on system or take care of my trade/s ?

Bhai, I am more comfortable with s/l.

SL doesnot help allways . Perfect examples were the cases of my friends today .

1) He shorted nifty and carryng with SL 5850 . Todays gapup violated SL but took away more than what he inteneded to or ready to loose .

2) My second friend have a short position too but he had a call of 5900 in his portfilio . today at gapup he sqaured his Short at 5900 and his call earned him what he lost in the short .

So , All strategies have their own advantages .Options were not just hedging instruments but most rewardable instruments if applied correctly and with good study . ( Sincere advice : dont enter illiquid options ( very low volume) any time .)

Naresh

 

[krishnan_vishnu]

This is a zero risk strategy, absolutely ZERO RISK strategy, and, your profits are limited, and is decided on entry, Period. (Including the commissions). You take the trade only if it is profitable, and, the returns are better than interest. It is for high volume players. You just take the trade and relax till expiry.

Futures go up - takes care of call going up. Futures go down, Long Put takes care of the futures loss. Contact me if you still have doubts.

Hello,

Please let me know , how the profit is fixed at entry.
Pls explain with example.

Regards
krishnan

 

[VasanSuccess]

Sounds intresting, Some days back i also develop a stratergy like this for day trading.

I had Infy share bought at 1600 levels.

I place Margin Sell Order for 20 shares(I also hold those share in my Dmat ) account at 1700 level.

So If price fall below 1690, I can take few profit on day trading, and if in case if it goes to 1720 level, i will convert my Margin order to delivery to avoid Day trading loss.

All work fine for first try, But at 3 PM, for some Reason My trader system goes to Maintainence, and Unable to convert to delivery(unable to create HOLD)

Luckly, I shout at my broker to enable the hold for my share to safeguard from loss of around Rs300+.

Though I have'nt loose from My pocket, IF i had not done that day trading My infy share worth 1800 today , loss of 2000 from my profit

laughing!! thats my stratergy.

 

[mahar]

interesting thanx

 

[yatishjain]

ENd of the day no one will expect to try this, as most of the investors enter a segment with some FA or TA, else they would enter mostly into cash segment

 

[allrounder_99]

Why dont u try on covered calls

What is a covered call? can you please explain.
do all brokerages allow it?
what are the criteria to be met for covered calls?
thanks.

 

[vssoma]

This is a zero risk strategy, absolutely ZERO RISK strategy, and, your profits are limited, and is decided on entry, Period. (Including the commissions). You take the trade only if it is profitable, and, the returns are better than interest. It is for high volume players. You just take the trade and relax till expiry.

Futures go up - takes care of call going up. Futures go down, Long Put takes care of the futures loss. Contact me if you still have doubts.

dear,
how is he going to get profit, can you pls. explain....
tnx,

 

[techdr]

HiDilip75 has very valid points.
Also volatility which day u are buying ie weekend or holidays or no etc which affect theta of option have to be taken into consideration as you may end losing money in near perfect no loss strategy

 

[DanPickUp]

What is a covered call? can you please explain.
do all brokerages allow it?
what are the criteria to be met for covered calls?
thanks.

Hi allrounder

Here are your answers :

http://www.optionseducation.org/strategy/covered_call.jsp

Take care

DanPickUp

 

[YogeshD2010]

Hi All,

Buying a call or put depend upon trend of share.
as per my understanding of trend ...following are my tips to catch call or Put.

1) News based stock are good to play Call/Put in bulk.

2) Keep track of any stock in 3-4 session required to be in 1 direction, also increase in open interest.

3) my personal example ..i bought SBIN call of 2350 at 50 Rs on SBI dec 7.5% base rate.
That day it went high around 55.
After that it came down to 25
On 8th July found bank nifty moving high bought another call at 33 & today i sold both at 125.
Yes but for this everyday stock tracking with put call ratio imp.

Happy Trading!!!!