option strategies for election short term gain - Business & Economy - Stock Market - TIK Share

option strategies for election short term gain


SUJEET KUMAR KUMAR

2014-03-13

hi,

buy 6650 call march month 36 rupees 50x30=1800  and buy  6600 put april month 130x50=6500

total investment 6500+1800=8300

 

hold for 10-15day target later i will give you 

Rahul Rai

2014-03-13

Hi Sujeet, i am currently part time employee and freelancer.

I am intrested in stock markets. Can you please explain what is call options and how to trade in them?

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SUJEET KUMAR KUMAR

2014-03-14

Hi rahul,

 

option is like low investment more returen .ex if you want to buy any shares in equity shares there required more mony but here lot size you will get ,like now banking licence RBI giving to some company ,in option hardly 1500 rupees required you will get 10000 shares.

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CA Pulkit Sharma

2014-03-15

@Rahul

Options give you an option to either excute a contract or cancel the contract. For example, suppose you buy a option of buying a option with 100 share, on the settlement date you have the option to either buy the shares or let it go.

Option gives right but not obligation.

Benefits of option is that loss is limited but profit can be unlimited. Option price is the difference between running price and targeted price of shares (in layman language, technically lot of method are to calculate the option price).

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