Option trading strategies that i hope will work.

[detrich]

dear Anup from last month I am bullish about Tata Motors so it was about time that the scrip picked up momentum remember always buy scrips in uptrend do not go bottom finishing till market is at , atleast , two years low and thank you Anup best of luck

 

[anup0212]

detrich bro after this repo rate cut what is the SBI target for april expiry ? please advise.

 

[detrich]

for the short term I am neutral on th sbi. I do not see the upmove continue above 2450 approx and I think in the short term it is overbought and chart is giving mixed signals so I think Iam going to give it a miss repo rates eh? I do not understand fundamental data so I steer away from it. Would yoube kind enough to explain repo rates to me dear.

 

[anup0212]

Detrich Bro , repo rate is the rate on which the RBI gives loan to bank and Reverse Repo is vice versa, this instrument is used by RBI to maintain liquidity in the system , though is the not proven fact that if they do this cut the system will be healthy but it serious does provide a short term healing effect , bro thanks for the advice ,even I am optimistic for SBI to touch 2450 around in up move...

 

[suresh3b2]

Hi All

This is first ever tip for option strategy. [Rectify if any error]

INFY(INFOSYS)(2381) lot size 125 shares
Buy One Call Option of MAY Strike Price 2650@22 Rs
Sell One Call Option of MAY Strike Price 2700@16 Rs.

Premium Paid = 22*125 = 2750.00 Rs.
Premium Received = 16*125 = 2000.00 Rs.
Net Premium Paid = 2750.00-2000.00 = 750.00 Rs.

Maximum Profit = 2700-2650 = 50*125 = 6250 - 750.00 = 5500.00 Rs.
Maximum Loss = 750.00 Rs.
Break Even Price = 2656

Regards
Suresh

 

[suresh3b2]

Option Tips for May

Hi All

INFY(INFOSYS)(2381) lot size 125 shares
Buy One Call Option of MAY Strike Price 2650@22 Rs
Sell One Call Option of MAY Strike Price 2700@16 Rs.

Premium Paid = 22*125 = 2750.00 Rs.
Premium Received = 16*125 = 2000.00 Rs.
Net Premium Paid = 2750.00-2000.00 = 750.00 Rs.

Maximum Profit = 2700-2650 = 50*125 = 6250 - 750.00 = 5500.00 Rs.
Maximum Loss = 750.00 Rs.
Break Even Price = 2656

Regards
Suresh

 

[suresh3b2]

Re: Low Risk Options Trading Strategy - Option Spreads

Hi All

This is first ever tip for option strategy. [Rectify if any error]

INFY(INFOSYS)(2381) lot size 125 shares
Buy One Call Option of MAY Strike Price 2650@22 Rs
Sell One Call Option of MAY Strike Price 2700@16 Rs.

Premium Paid = 22*125 = 2750.00 Rs.
Premium Received = 16*125 = 2000.00 Rs.
Net Premium Paid = 2750.00-2000.00 = 750.00 Rs.

Maximum Profit = 2700-2650 = 50*125 = 6250 - 750.00 = 5500.00 Rs.
Maximum Loss = 750.00 Rs.
Break Even Price = 2656

Regards
Suresh

 

[detrich]

dear Anup I am not optimist neither pessimist on SBI I just do not have clue for short term in SBI incase if thre is an upside it will limit to 2450 . Dear Suresh thank you for sharing your option stratergy can you please kindly elaborate on the condition for which you are recomending this stratergy.

 

[anup0212]

detrich , what dose this "Sell One Call Option of MAY Strike Price 2700@16 Rs" statement means ? can you please tell me , if this is possible in option ?

 

[detrich]

dear Anup what Suresh is refering to is writing an option and yes it is possible to sell option contract but the margin requirement is very very high so it makes no sense to jump in it till market is trending