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Hope futures and options strategies india have futures and options strategies india idea of the covered call with put hedge strategy. I have found it to be the most successful and powerful strategy in Indian market but slight alteration is required for this. Any one can initiate this strategy with blind eye. As I said many times before, we the traders either lack the knowledge or we have the problem of plenty which always yield negative return for us. It is often futures and options strategies india that we learn the techniques but never allow yielding the positive result for us.
To day I have experienced one of the most successful and thrilling experience from one of my client. Being blind folded in the skill of technical, fundamental from past couple of years he is playing only on covered call with put option strategy. A also many such interesting strategies in the DVD course.
It looks very impractical but this is the truth. I am going to describe how these things happen in real trade practice? On November 3rd I have bought Nifty future December atsold the ce December atbought pe November at On 9th November I close the strategy future atce at and pe at Net profit realized was Rs in the strategy. On 10th November bought Nifty future atsold ce December at Rs and bought futures and options strategies india at Rs On 17th November I close the strategy future atce at and pe at Profit Rs in future, loss 55 in ce short and loss Rs65 in pe short.
On 18th November bought nifty future December atsold ce atbought pe December at On 27 th November I close the strategy future atce at and pe at Loss Rs 90 in future, profit 55 in ce short and profit Rs33 futures and options strategies india pe long.
Net loss incurred Rs in the strategy. Must read this very carefully. The trick is too simple. I have 3 months contract current, near and far open futures and options strategies india a time.
For 1st 2 week of the current settlement cycle I will initiate the strategy as follows. For the last 2 weeks of the settlement month I will initiate this same strategy with near and far month contact. This is because to avoid the unnecessary time value decay in the long options. This position also has one more benefit. Since this is a spread position it attract less margin and you can have a better bargain with your broker regarding the margin and brokerage issue. Rs capital in the way of net credit by selling the option and buying the option.
Three to five speculations in a month with average positive return of Rs will make you to earn Rs to Rs per month. This approximate estimate may yield Rs in a year. This is a rough estimation based on the performance seen by us in the month of November by following this strategy. However the actual figure may vary based on your implementation and market condition. If you are a good speculator then each point move in nifty futures and options strategies india can close the profitable position and reenter again with 20 to 30 point fall.
Provided your brokerage must be low enough. You too can form 3 such strategies with covered call with put long and 1 covered put with call long. Why I focused on Nifty for this strategy? This strategy also works in stock options and futures. Futures and options strategies india the stock options have the risk of exercise in case of a wild move and it has the greater possibility to become illiquid too. This problem will not be encountered if this strategy is playing the Nifty future and option alone.
After which you will get the grip to understand this strategy and apply it in more efficient manner. Some basic home work of finding the option volatility will prove to be highly beneficial while initiating this strategy.