Option trading strategies that i hope will work.

[HARIVEL]

sir what is hedging?

 

[detrich]

hedging is a term used to define a position taken to nullify or reduce the risk of loss prime example are health or life insurance. In stocks this role is fullfilled by options.

 

[bhurasandip]

Sir,
I have few querries wrt options
1) If i sell a call option & do notcover it till expiry. What happens.
2)What are the circumstances under which the premium of calls will close higher for the day of expiry than its previous day..
3) on 25th april nify closed at 5198 and 5200 ce at 25. I sold 5200ce @25/- of april expiry on 25th. Now 26th april being expiry what will happen if i do not cover my position and nifty closes at 5415.

Hope you understood my querries.

 

[detrich]

I am sorry Sandip that sounded like Hebrew to me.

 

[detrich]

Short nifty @ 5240 sl 5255

 

[TheDreamer]

Sir,
I have few querries wrt options
1) If i sell a call option & do notcover it till expiry. What happens.
2)What are the circumstances under which the premium of calls will close higher for the day of expiry than its previous day..
3) on 25th april nify closed at 5198 and 5200 ce at 25. I sold 5200ce @25/- of april expiry on 25th. Now 26th april being expiry what will happen if i do not cover my position and nifty closes at 5415.

Hope you understood my querries.

Following are the answers to your queries:

1) It depends on whether the call is ITM, OTM or ATM.
2) If the close of underlying on expiry day higher than previous day, the premium of calls may close higher for the day of expiry than its previous day.
3) Congratulations on your profit of 25(*50 per lot) bucks (including other charges) if you didn't close the position on that day. :thumb:
If nifty went to 5415 on that day, you had to shell out (5415-5200-25)*50 bucks per lot or 9750 bucks per lot as well as other charges.

 

[angelnish]

A simple, logical and highly effective method to help traders follow the trend and identify entry points within the trend.

 

[anup0212]

hey detrich bro, are you not doing trade these days ?

 

[sundar1964]

Ftse 100 option is available in nse starting from may 1st week.(news appeared in business line dtd 20/5/12). Can any one tested it? Pls do reply.

 

[detrich]

Hi all,

Watch out for 5534. The markets have entered into a bearish trading in the middle term i.e. a period between 3-6 months. This 5500 mark is crucial because in recent years it has proved to be a crucial mark. I have a gut feeling that the Nifty is going to be rangebound between 5500(5450 At MAX) at the bottom and a top of 5700 in the April series. I am planning to stick my neck and sell an call option if the Nifty pulls down the 5534 mark.