Hi CB,
My Query @ 10:54 on REC

cb sir i don't have more, i cant do anythings, so should i booked loss ?

Hi K K, can I buy any Nifty PE now?

is nifty downtrend over?

Hi vijay,
Rs. 50 Don't enter it again now.

Hi All,
Geo-political concerns are to be considered. Global markets are under pressure anad INDIA too along with the rest of the world.

ISIS is angry over Obama's orders for limited Airstrike on IRAQ. Already updated the same in the blog this morning Trade cautiously.

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There are 3 simple option strategies .Straddle, Strangle and Gut.

1. Straddle is a volatile option strategy or what we call Market Neutral Strategy. Being market neutral means that a long Straddle profits no matter if the underlying asset goes up or down. Yes, a Long Straddle allows you to simply put on the position and then totally take your mind off the stock as you will be in profit no matter if the underlying asset goes up or down.(Example: when nifty is around 4100 buying 1 lot 4100 call and 1 lot 4100put)

2. Strangle is a volatile option trading strategy that profits when the stock goes up or down strongly. The Strangle is a cousin of the long Straddle and the Long Gut, making up a family of basic volatile options strategies. Learning the Straddle first makes the Strangle easy to understand.(Example: when nifty is around 4100 buying 1 lot 4200 call and 1 lot of 4000 put)

3. Gut Spread is a volatile option trading strategy designed to profit when the underlying stock moves strongly upwards or downwards. The Long Gut Spread is a cousin of the Long Straddle and the Long Strangle with the only difference being that in the money options are used instead. The Long Gut Spread is useful when no at the money options are available when you want to use a Straddle. In fact, since exactly at the money options are so rare, the Long Gut Spread using in the money options and the Long Strangle using out of the money options are far more commonly used than the Straddle. (Example: when nifty is around 4100 buying 1 lot 4000 call and 1 lot 4200 put)

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Yesterday bought nifty 7600PE@62 and 7700CE@81 and closed today @105 and 56.5

overall profit of (105+56.5) - (62+81) = 18.5 - 4(brokerage..heavy :-))= 14.5 profit per lot....

these strategies works well only when there is a huge movement nifty ....in the current times of crazy movement of nifty (around 100-150 points), it makes sense to go for strangle..BUT you will also get into loss through premium getting eaten away when the nifty moved in a very tight range or no movement at all....

so it should be a conscious decision when entering ....during the last 2 weeks of expiry ..it is extremely risky to leverage such strategy as the premium gets eroded both sides very quickly....

HI CB / KK,

Idea Futures Target & Stop loss please

Hi Durai,
sorry, not sure of Telecom. but you should consider
1) TRAI consulitation with TElecom companies for valuations
2) Imposiing some service charge for usage of SKYPE, WHATSAPP, VIBER services in INDIA as they are causing revenue losses for indian telelcom sector