Stocks To Keep A Close Eye On
- Thread starter SavantGarde
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- Tags afl amibroker
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Re: Stocks To Keep A Close Eye On - Chapter II
That is what I realised with option but the best bet is to buy option mid month or around 18th of every month and liquidate it 3-4 days before the expiry I have noticed that the price of the option doesnt fall that much as the stock price goes up only to come down on the day of expiry or a day before. Last month I tried this with Suzlon. Here is what I did:
Bought the 85 Call, Sold the 90 Call and 75 Put the overall money I had to pay was 3000*1.5Rs after taking out the premium I received for Selling a Call and a Put but Had to have margin in my account worth Rs 90,000+. The Stock price at that time was Rs 83.3. The stock went to Rs 91 only to close at 89.30 a day before the expiry where I settled all my contracts and happily exited with around Rs 7 on all of it. So got a good return. But the only problem is that margin required is similar to what I need for buying a futures contract which can be rolled over hence I found that although Options give you better Bang for money(In terms of absolute return) Futures are much safer.
P.S- I had must quit points at stock price <80 and Stock price >92 because I would have made loss if I didn't do that.
Many thanks.
Regards
Nimish
That is what I realised with option but the best bet is to buy option mid month or around 18th of every month and liquidate it 3-4 days before the expiry I have noticed that the price of the option doesnt fall that much as the stock price goes up only to come down on the day of expiry or a day before. Last month I tried this with Suzlon. Here is what I did:
Bought the 85 Call, Sold the 90 Call and 75 Put the overall money I had to pay was 3000*1.5Rs after taking out the premium I received for Selling a Call and a Put but Had to have margin in my account worth Rs 90,000+. The Stock price at that time was Rs 83.3. The stock went to Rs 91 only to close at 89.30 a day before the expiry where I settled all my contracts and happily exited with around Rs 7 on all of it. So got a good return. But the only problem is that margin required is similar to what I need for buying a futures contract which can be rolled over hence I found that although Options give you better Bang for money(In terms of absolute return) Futures are much safer.
P.S- I had must quit points at stock price <80 and Stock price >92 because I would have made loss if I didn't do that.
Many thanks.
Regards
Nimish
Re: Bhushan Steel
Hi
Bhushan Steel Jan future had freak open low of 1308 couple of days back after that it had few small upmoves. Usually big gaps like these get filled up. Are these small up moves only to camaflague big down move coming ? With metal stocks on hit list for last few days, it would be interesting to watch Bhashan Steel whether it fills this gap created till 1308 before expiry. Can anyone throw some more light on it from his experiences of past ?
Cheers !!!
Alok Tewari
Hi
Bhushan Steel Jan future had freak open low of 1308 couple of days back after that it had few small upmoves. Usually big gaps like these get filled up. Are these small up moves only to camaflague big down move coming ? With metal stocks on hit list for last few days, it would be interesting to watch Bhashan Steel whether it fills this gap created till 1308 before expiry. Can anyone throw some more light on it from his experiences of past ?
Cheers !!!
Alok Tewari
- Status
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