Option Buy Recomendations

[sriugdh]

his premium is 1.5 rs above strike price.

Break even at 32 means
32 = stike price + premium.

Strike price = 32 - 1.5 = 30.50

Sir,

thanks so much!!
Can u explain me the logic involved here?
Also, what about the Rs 27 = purchase value of share// Does it hold any sense in this calculation?

Regards,
Sri

 

[scplindia]

Premium is paid on the stirke price, not on CMP, hence CMP has no relvence for this calculations. On the day of exercise, Average of the last 1/2 hr of CMP, is used to calculate the exercise price. Till the CMP reaches 32, he is in profit, if CMP goes above 32, he will be in loss, that is what you sum says.

 

[sriugdh]

Premium is paid on the stirke price, not on CMP, hence CMP has no relvence for this calculations. On the day of exercise, Average of the last 1/2 hr of CMP, is used to calculate the exercise price. Till the CMP reaches 32, he is in profit, if CMP goes above 32, he will be in loss, that is what you sum says.

Awesome.. thanks so much sir.

Regards,
Sri

 

[ghosh_ak34]

Awesome.. thanks so much sir.

Regards,
Sri

This is a covered call so its talking about break even. Anyways, I do not like these schoolish languages, as I believe one must know how to make money using options and that is what a trader should be good at.

There are many greeks in options world like these which hardly one understands and so fails to trade in options. This is the reason why traders don't trade in stock options and liquidity is so low.

So, its better to concentrate on making money not on these greeks. If I would have concentrated in understanding these greeks, then I fear I would have started trading in options.

Basic is one must be able to search and take out the diamonds out of the mines.

Regards

 

[prashyrao]

Premium is paid on the stirke price, not on CMP, hence CMP has no relvence for this calculations. On the day of exercise, Average of the last 1/2 hr of CMP, is used to calculate the exercise price. Till the CMP reaches 32, he is in profit, if CMP goes above 32, he will be in loss, that is what you sum says.

@scplindia: I am not sure, if he just breaks even. He is already in profit by selling stocks @32. Isn't he?

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistance at 5433
Support at 5344

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend check strategy posted in 1st post of this thread.

Regards

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistance at 5452
Support at 5390

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend check strategy posted in 1st post of this thread.

Regards

 

[optionstrader]

Hello Ghosh Sir, how are you ?
Hope to see you in good health.

Ghosh Sir, kindly guide , What are frontline stocks ?
And could you please name a few ?

Actually i want to trade in frontline stocks, would it be advisable to
traade in these frontline stocks ?

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

 

[ghosh_ak34]

Hello Ghosh Sir, how are you ?
Hope to see you in good health.

Ghosh Sir, kindly guide , What are frontline stocks ?
And could you please name a few ?

Actually i want to trade in frontline stocks, would it be advisable to
traade in these frontline stocks ?

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

Dear Optiontrader,

I am fine. Thanks!

My list of stocks for day trading :

DLF
CIPLA
CANBNK
CAIRN
BHARTI
BOI
BOB
AXISBANK
ACC
ABANLOYD
ESSAROIL
GAIL
HDFC
ICICIBANK
HINDALCO
HEROHONDA
HDFCBANK
HCLTECH
GMRINFRA
TATAMOTORS

Regards

 

[ghosh_ak34]

Dear Friends,

For Nifty Future traders who would like to trade as per trend check strategy posted in 1st post of the thread, Nifty levels for tomorrow are as under:

Resistance at 5410
Support at 5330

If you go short 1 lot then, buy 1 lot at money or near money call and if you go long 1 lot then, buy 1 lot at money or near money put to hedge. Reco. to trade as per trend check strategy posted in 1st post of this thread.

Regards