Traderji.com - Discussion forum for Stocks Commodities & Forex

SPECIAL Market Option Trading Strategies

Discuss SPECIAL Market Option Trading Strategies at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; SPECIAL Market Option Trading Strategies Key Points to Remember: Special Market Strategies work best in ...


Go Back   Traderji.com - Discussion forum for Stocks Commodities & Forex > THE MARKETS > Derivatives > Options

Notices


Advertise Here

Reply
 
Thread Tools
Sponsored Links
  #1  
Old 12th August 2004, 10:47 AM
Member
 
Join Date: Jul 2004
Posts: 30
Appreciation: 20
TradingPicks is on a distinguished road
Default SPECIAL Market Option Trading Strategies

SPECIAL Market Option Trading Strategies

Key Points to Remember:

Special Market Strategies work best in those times when you are expecting a BIG move but are uncertain as to the direction of the move. This is specially true during times of the Union Budget, company results, etc.
ALL options eventually lose ALL of their "time value."
ALL "Out-Of-The-Money" options expire worthless.
Markets only "trend" 1/3 of the time; they move sideways the other 2/3.

I have arranged the four special option market strategies as follows:

Option Strategy
Description
Reason to use
When to use


Straddle Purchase
Buy Put & Call.
Options will lose time value premium quickly.
Options under-valued & market likely to make a big move.

Covered Call
Buy future & sell Call.
Collect premium on Calls sold.
Neutral to slightly bullish.

Covered Put
Sell future & sell Put.
Collect premium of Puts sold.
Neutral to slightly bearish.

Synthetic futures position
Buy Call (Put) & Sell Put (Call).
Neutral, slightly trending market.
Receive credit, option sold far out of the money.
Reply With Quote
  #2  
Old 14th September 2004, 09:15 AM
amh amh is offline
Member
 
Join Date: Sep 2004
Posts: 40
Appreciation: 20
amh is on a distinguished road
Default Re: SPECIAL Market Option Trading Strategies

Very useful site. Althogh i am a new member to this site, an old subscriber to traders edge.The experience of subscribing to the news letter was very good. Value for money i would say.
Reply With Quote
Sponsored Links


Reply

Bookmarks


Advertise Here


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads for: SPECIAL Market Option Trading Strategies
Thread Thread Starter Forum Replies Last Post
Trading Without Ego Anil Words of Wisdom 11 5th April 2008 02:14 PM
Recommended Books on Practical Trading Strategies Traderji Books 12 24th February 2007 11:27 AM
NEUTRAL Market Option Trading Strategies TradingPicks Options 0 12th August 2004 10:22 AM
BEARISH Market Option Trading Strategies TradingPicks Options 0 12th August 2004 10:11 AM
BULLISH Market Option Trading Strategies TradingPicks Options 0 12th August 2004 08:19 AM


All times are GMT +5.5. The time now is 01:56 PM.

Indemnity, Disclaimer & Disclosure Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum Rules Disclaimer & Disclosure and indemnify Traderji.com, its associates and related parties of all claims howsoever resulting from the usage of the forum.
Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. Traderji.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
 


Copyright © 2001 - 2008, Traderji.com All Rights Reserved.

Recommended Websites - www.TradersEdgeIndia.com - www.TradingPicks.com - www.MasterOfTrading.com