Nifty Future And Stock Option

rkkarnani · #11 20th August 2007, 07:59 PM

Quote:

Originally Posted by ranj_2k

Dear Mr Karnani,
As per my assumption, If you got the opportunity of buying 1 lot of SBIN 1590 Call at 24.40 and sold 1 lot 1680 call at 9.20. The difference in price of your the both position at any given time is 56. So you will earn 56x250=Rs.14000 at the end of expiry. Please correct me if I am wrong? Why you are taking another call?

Was trying to reduce my risk by selling one more call of higher strike... may be it is an error??? Reason was I am unsure of the mkt due to Left tantrums abt Nuke deal.

madhava36 · #12 20th August 2007, 08:02 PM

Dear Mr Karnani,
As per my assumption, If you got the opportunity of buying 1 lot of SBIN 1590 Call at 24.40 and sold 1 lot 1680 call at 9.20. The difference in price of your the both position at any given time is 56. So you will earn 56x250=Rs.14000 at the end of expiry. Please correct me if I am wrong? Why you are taking another call?
------------------------------------------------------------------------
56? Please show how this is calculated.
madhava36

rkkarnani · #13 20th August 2007, 08:10 PM

Quote:

Originally Posted by madhava36

--------------------------------------------------------------------------------

Dear Mr Karnani,
As per my assumption, If you got the opportunity of buying 1 lot of SBIN 1590 Call at 24.40 and sold 1 lot 1680 call at 9.20. The difference in price of your the both position at any given time is 56. So you will earn 56x250=Rs.14000 at the end of expiry. Please correct me if I am wrong? Why you are taking another call?

56? Please show how this is calculated.
madhava36

No idea abt this figure 56/-, not calculated by me. Post was by ranj_2k.
I can gain only if the sbi is above 1606/- and it shall be rupee for a rupee till 1680/- where my profit shall be max.
I loose below sbi at 1606 or lower.

rkkarnani · #14 20th August 2007, 08:27 PM

Quote:

Originally Posted by madhava36

Dear Mr Karnani,
As per my assumption, If you got the opportunity of buying 1 lot of SBIN 1590 Call at 24.40 and sold 1 lot 1680 call at 9.20. The difference in price of your the both position at any given time is 56. So you will earn 56x250=Rs.14000 at the end of expiry. Please correct me if I am wrong? Why you are taking another call?
------------------------------------------------------------------------
56? Please show how this is calculated.
madhava36

I did get these opportunities. Figures are actual selling rates observed by me on the terminal. However it is not clear to me how would i gain 56X250 irrespective of the SBI closing levels at expiry

rkkarnani · #15 20th August 2007, 08:32 PM

Quote:

Originally Posted by safespeculator

ur calculation is correct but y wanna take a naked position on 1710 CA and want to lose all ur profits if sbi moves above 1800 then u will b in unlimited losses I have given my view based on ur naked short position in 1710 CA
Hope I have answered ur query

Sir, I never took a naked position at 1710. My position at 1590 cushions my loss. Ofcourse I loose a rupee for a rupee above 1800 and some odd. But with time period remaining for expiry i feel i should get enough opportunity to exit the 1680 and 1710 positions either at par or manageable loss. Do consider that 1799 is SBI's all time high. I feel the strategy had huge risk reward ratio in my favour.
Sir your valued comments are solicited.
Regrads.
-R.K.Karnani

rkkarnani · #16 21st August 2007, 12:21 PM

Quote:

Originally Posted by safespeculator

NIFTY IS LOOKING BULLISH
Buy Nifty 4200 Aug CE at 100 - 105 SL 79 Target 160 - 180

Sir, Intraday the SL has been hit, may close above 79 no idea. Is it advisable that at this stage , i.e. time decay being accelerated (only 9 sessions left for derivative closing)
that we also BUY a PUT or sell deep out of money call to hedge our position.

safespeculator · #17 21st August 2007, 06:08 PM

Quote:

Originally Posted by rkkarnani

Sir, Intraday the SL has been hit, may close above 79 no idea. Is it advisable that at this stage , i.e. time decay being accelerated (only 9 sessions left for derivative closing)
that we also BUY a PUT or sell deep out of money call to hedge our position.

The SL was hit today i.e on 21st Aug. Hedging involves a cost therefore hedging is advisable when we are aiming for big targets
Even i was long in nifty 4200 CE at 102 and exited around 78 at SL

rkkarnani · #18 21st August 2007, 09:43 PM

Quote:

Originally Posted by safespeculator

The SL was hit today i.e on 21st Aug. Hedging involves a cost therefore hedging is advisable when we are aiming for big targets
Even i was long in nifty 4200 CE at 102 and exited around 78 at SL

Ok sir, got your point.
Thanks

safespeculator · #19 22nd August 2007, 01:30 AM

Plz Dont Use Sir Madam In This Forum We Are All Friends And Share A Common Passion

rkkarnani · #20 24th August 2007, 12:03 PM

Hi, Please continue to post your views. Ur silence suggests that u have been discourgaed by your first Option call call hitting SL. PLEASE!!!!! donotbe discouraged and continue to post. Even the best of the analysts cannot read the present type of market corrctly.
Look forward to your posts. May be if there are no calls at present to post do post some insights into Option trading.

Similar Threads for: Nifty Future And Stock Option
Thread	Thread Starter	Forum	Replies	Last Post
query on future and option of nifty	Mihirkumar	Derivatives	12	16th October 2007 11:18 PM
New Future and option trader	satheesh.pr	Introductions	1	20th April 2007 09:45 PM
Nifty Future & Cash Nifty Relation	Suhas Joshi	Derivatives	2	16th February 2006 09:07 AM
effect of bonus over future and option	nip251	Derivatives	1	6th February 2006 10:01 AM
Future V/s Option	sh50	Derivatives	3	21st September 2004 11:04 AM