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Nifty Future
has declined from the
budget day level of 5332 to 4761 on 4 June 2012.
A fall of 10.7%.
With political situation in a flux and international economy in
uncertain state, there is little hope for any drastic
improvement in stock market in near future. For Intraday
traders, the situation is dismal. Nifty Future, which was once the safest and best for
trading Intraday, has been erratic. Sudden ups or downs are followed
by hours of sideways price movements which, as all traders know,
are impossible to make
profitable trades. The choppy price movements lead to frequent
'stop-loss' trades.
The Analyst has now introduced a perfect solution to counter the
present situation and still earn a good R. 2,000 to R. 8,000 plus
every day using Nifty Options
instead of Nifty Future and that too with only R. 30,000 capital.
NIFTY GOLD HUNT: UNIQUE PROFIT SHARING
This strategy has nothing to do with learning stuffs like beta,
theta or omega. You also don't need to learn Black-Scholl
calculations; nor is required to calculate volatility or bother
about time decays - stuffs that experts associate with Options
trading.
The following table shows the prices at which Calls and Puts
Options were available on a particular day. These prices change
with time and market movements. The trading trick is to find the
right Call and Put range and execute trades coinciding with the
reversals in the market, primarily.
|
CALL
OPTIONS |
R. |
R. |
PUT
OPTIONS |
|
4700 |
255.20 |
29.55 |
4700 |
|
4800 |
177.00 |
52.25 |
4800 |
|
4900 |
110.30 |
86.40 |
4900 |
|
5000 |
63.00 |
136.00 |
5000 |
|
5100 |
31.00 |
202.50 |
5100 |
|
5200 |
14.20 |
282.05 |
5200 |
|
5300 |
6.50 |
373.25 |
5300 |
|
5400 |
3.45 |
465.05 |
5400 |
|
5500 |
2.10 |
567.70 |
5500 |
|
5600 |
1.60 |
662.45 |
5600 |
Most brokers
charge hefty fee for Options trading. The Analyst has a solution
to that too.
Intraday traders can now open a new trading a/c with a
designated broker and trade UNLIMITED NIFTY F&O at only about R.
2,200 per month. This means, your breakeven point in an Option
trade now has to cover mainly the STT and levies which roughly
amount to R. 45 for 10 lots of an Option costing around R.
35.
CAPITAL REQUIREMENT
One lot of Nifty Option is considered as 50 underlying stocks.
Therefore, for an Option costing R. 30 will require (30x50) R.
1,500 per lot. So with a capital of R. 30,000 you can buy 20
lots or 1000 underlying stocks. A favourable Nifty movement will
now increase or decrease the price of the Option and result in
profits. Or loss, in an unfavourable move.
Hence, it is imeprative that:
1. The Intraday trader is able to identify the Up or Down
movements in the price very very accurately
2. Select the right Option for the trade from so many available
price points
3. Identify the price at which to exit the trade at a profit
4. Know where to apply stop-loss to control downside risks
5. Determine no. of lots one should trade
6. Understand when to hold on to a position for the next day
While it is really not difficult to make good money with
Options, it is advisable to take professional help. See
Learn to Hunt for details of a unique Trading
Partnership Plan.
Arunangshu M Lahiri is available on mobile nos.
097400-76212 (Bangalore),
09330876212 (Kolkata) as well as via mail:
sharebaba@gmail.com.
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