yesterday i had given a call to buy one lot nifty dec 2900 ce at 90 and one lot dec 2400 pe at 90 total cost was 180 and the target given was 240 till friday max .
the market is closed today due to the terror attacks on our city so one day time decay will reduce our premium by atleast 5% ,this will also affect our targets.tommorrow also there is a possibility of our markets being closed[not yet confirmed]
lets study the call now yesterday when the nifty was at 2670 i had given this call of buying one ce and one pe total cost was 180
now to make profit nifty should go in one direction for 2/3 sessions continuously
yesterday dec 2900 ce closed at 115 and dec pe closed at 64
now if nifty goes up and crosses 2900 tomorow then the 2900 dec ce will cross 200 and 2400 dec pe will come down to 20/25 so the total value of our call will be 220/225.
suppose nifty goes down and closes below 2500 tommorrow then the dec2400 pe will go upto 180/200 and dec 2900 ce will come down to 25/30 now the total value of our call will be 205/230 .
if nifty just moves here and there and does not go in one direction we may not earn but our loss will be limited [ that is time decay of 2 days ]
we should always consider time decay will trading in options the premium decays very fast . if anybody has taken my call pls exit your call tommorow itself because after that 2 days tie decay will eat your premium
yesterday the us markets have closed flat ,even the europe market closed in a little green ,now today asia is mix and nifty singapore is in little green.so i see a little green opening today in our market which should be used to get out of longs and you can also buy some puts today as the markets are very weak.
the stock market is at its worst now ,even the index is at 52 week low and so are many many stocks .i strongly feel that one can start buying stocks now with the long term frame in mind only [3 to 5 yrs].i am dot sure your stocks will multiply many times by then.please do not invest all money now just start buying now and more in coming weeks ,maybe u will pay a little less or more also.there are many stocks in 50 to 300 range which will multiply many times. invest only in those companies whose business can be understood easily
a perfect timing is all that is required to be sucessful in the stock market. your entry and exit points should be perfect .tommorrow the new settlement for fno will begin ,market is expected to move upwards a little ,the sentiments are bearish ,i am planning to buy nifty put on every rise .i am also hopeful on dlf which is trading at 388 and unitech which is trading at 120 both stocks should move up .
today was the first day of september derivatives setllement the nifty was flying high as the inflation numbers were lower than last week numbers and also crude oil had come down a little nifty made a huge jump of nearly one hundred fifty points all the index calls were 60 to 75% up than the last close .
the market is moving upwards from last 4 sessions and today also the market should go up as there are full chances of the gov't will survive its confidence motion, still we have to be very careful there are a lot of chances for huge profit booking . i am having a 3700 put and 3600 put of nifty options let us seen what happens today
from last two days the market is going up and up only after continuous falls the market has shifted gears and is going upwards only and if the govt wins the confidence vote on tuesday the uptrend will continue and the market seems unstoppable , also the crude oil is come down sharply which indicates a good sign for our economy which has slowed down .nifty today crossed 4100 mark which means the market will be good ahead
nifty is just dragging down every day making new lows the market is totally under the control of bears .the market is just showing negative trends and recovery seems a distant dream i have made a huge loss in recent days but since i follow strict stop loss the loss is restricted yesterday i had bought a nifty call of 4200 strike price at 38rs today it is 23rs .i booked my loss at 34rs today and bought today again at 21rs hoping for a better tommorow
today the market closed on a positive note ,tomorrow also the market seems good ,i am planning to buy nifty put option of 5000 at about a premium of 40rs which is currently at 56rs ,if the market goes up tomorrow the premium will come down .put option is ideal buy when the market or the stock goes up sharply
yesterday i had purchased one lot of nifty call option of 5100 strike price at the premium of 56rs , today the market is good the nifty almost touched 5100 level and slipped a little , as of now the premium of 5100 call option has touched 90rs ,i made an early exit at 85rs , a profit of nearly 27rs net , almost 50 % profit of the investment.i feel the market will cross 5100 mark today.i dont hold my options for long either ways. i exit fast let it be a loss or profit.
i have bought nifty call option of 5100 strike price today at the premium of 56rs ,at the end of the day the premium had gone upto 62rs ,more than 10% profit in a day .i expect at least 20rs profit tomorrow .i nifty crosses 5050 mark this will be easily possible
the last two days were very good for options the fluctuations were very hgh ,yesterday the market opened in the positive note and went in the red in the other half and today the market opened weakly and improved fantastically in the second half .the price fluctuations in nifty call and put options was very high.
nifty was very dangerous today , the market opened on a weak note today and had a few hiccups also i had a strong feeling that market should recover today ,it seems that many of them must have done short selling so the market pounced back above the 5000 mark .it is a very important level ,one should watch the options closely before entering in it
the best thing about the options is that there is nearly 10 to 100% fluctuation or even more some times in a single day either ways if we concentrate properly we can earn a lot .one should understand the market trend and accordingly you can trade in call or put options to gain maximum profit .but you should make your own rules and follow them strictlyyou should also follow a very strict stop loss .to make profit you also have to make loss ,in options please dont try to average out there is a chance you will never make up.
call option and put option is just something different when the stock price goes up the call option premium goes up and when the stock price goes down the put option premium goes up now the market is falling from last 5 days the put option premium of many scrips have doubled literally and call option premium has come down more than 50%.today only the nifty put and call options are seeing 30 to 100% premium difference.my friend had bought a put option of 5200 on monday ,there is an increase of nearly 120% in four days .keep watching the market i am planning to buy call option of 5000 strike price
i have learnt one thing never keep the options open if you are not following them.yesterday i had bought a call option in the morning and could not follow it due to which i lost money today. if i had followed it closely i would have made profit instead , i booked a loss today .nifty is in red from last four consecutive days .there are nearly 15 more trading days in this calendar month before the expiry of this settlement. in this options there is a very rare chance of recovery so it is always better to book loss instead of losing the total money.
in the morning the market opened weakly , i was expecting the nifty to go below 5100 , it nearly touched the level immediately in the opening itself i bought 5200 call option at 89 rs premium , i had some work so i could not follow the market for the day ,later i learnt that the market went up by noon and came down again by 3 pm and recovered a little in the end as it usually does every day. i had lost a chance of making a profit of atleast 15-20 rs today .i hope to make a little profit tomorrow ,i will square it of let it be a loss or a profit
nifty was weak today it opened on the weak note in the morning and went in the red immediately it recovered a little by noon but was pulled down again in red there was very little scope in options of nifty a mere 4-8% fluctuation .tomorrow also the market seems flat lets hope for the best
i never short sell in options actually the technical word is call writing and put writing. the biggest thing i dont like in put or call writing is that u have to pay the margin money which we usually pay in future trading..instead buying call or put option is much better where the investment is only the premium amount which is very less compared to the margin money .the extra money can be invested some where else .i options i dont keep open position for a long period and i dont even trade in big quantity i trade in small parts and book profits regularly ,sometimes loss also .keeping open position in option is not possible because as the expiry of the contract comes closer the premium comes down ,so there is a time lag here which has to be kept in mind
call option is the part of option trading in derivatives segment .strike price is the centre point here a premium is paid from the buyer to the seller of that particular contract . in call options you benefit if the price of the stock or indices go above the strike price .
in nifty you benefit by buying call option if the nifty goes up
in nifty you benefit by buying call option if the nifty goes up
option trading is slightly different from the futures and cash trading.in options there are strike prices of stocks and indices around which the whole trading revovles in option also there are two types of option one is put option and the other is call option .i would like to explain this with the help of nifty options now ,nifty is at 5220 and the put option of 5100 strike price is 83rs which means that according to the current seen if nifty comes down below the strike price which we have selected 5100 or even if the nifty comes down from the current price of 5220 the price of 5100 put option of nifty will go up ,in simple terms in put option we can benefit if the price comes down ,in the morning i had bought put option of nifty 5100 strike price at 70 rs that time nifty was at 5250 than the nifty came down a little at around 5200. the price of 5100 put option of nifty went upto some 92rs .i sold it around 90rs making a decent profit of 20rs , nearly 30% profit .i usually love put options when the market goes up the put options become weak that time i buy them and when market becomes weak the put options go up .still you have to be very careful .i have made losses also many times but it is limited , because i maintain a very very strict stop loss .in option you cannot hold any thing for more than 3 - 4 days otherwise you stand a chance of loosing money .the biggest negative factor in this is there is very little time for you to cover and there is no carry forward system in this .you have to play this in small parts only and quickly, you should be ready to book loss .this are valid for one month only ,you can say some 20 to 24 trading days every month ..it is just like a twenty -20 match.
today nifty took a big leap in the morning and slowly it is coming down there is nearly 15 -20% difference in the put and call options of the derivative segment in nifty opened at 5250 above 80 points of previous close and is now at 5200 by the end of the day i feel the nifty will close in the red i have bought put option of 5100 strike price at 70rs now it is at 80rs i will square off my position very fast
nifty is moved very quickly into blue zone and back in the red zone .i love nifty options very much due to its volume .i think nifty options are of least risk if followed carefully .i traded thrice in the put option of 5000 and made a little money ,now so this put option is at 23 rs a very good rate to take on but i have changed my focus on the other put option that is of 5050 as there are only two days left for the settlement.