Rule #1 of any trading strategy is "TREND IS YOUR FRIEND".
Rule #2, All the technical indicators are based on "STOCK PRICE".
So, I had developed a strategy based on above 2 rules that works perfectly.
I had back-tested the strategy from Jan 1st, 2011 to Sep 26th, 2015 and the strategy...
I am planning to do arbitrage trading for 50 lakhs.
If you check this,
spot price of stock expiring in 15 days is 218 where as futures price is 221.
On expiry both will have same price, so if i do...
I have checked using span calculator and found that they will block more margin than the loss expected. Why?
Suppose for xyz stock, I buy 1480CE 1000 quantity And sell 1460CE 1000 quantity, in this case the maximum loss for me will be 20k rupees but they are blocking 2 lakh rupees.
Lets say stock xyz is trading at 1100
For example, if I do the following trades
Buy 1120PE 43
Sell 1100PE 28
Buy 1100CE 28
Sell 1120CE 20
Then i make profit of Rs.3 per share.So if i sell 1000 , i get 3000rs right?
Will that be paid as commision to broker?
What will be commision...
Though I am trading in equities for past few years and profitable, I am new to option trading and doesnt have much knowledge about strategies.
But still I decided to trade from tomorrow in options. It looks for me like a math.
Here are the calls I am planning in my first options trade:
Can I sell 1000 call option of strides, currently trading at 4, when i have 50000rs with me? Lot size is 500.
I am new to option trading.So i have above query?
Do selling call option needs the money to be available in account like 1000x500 i.e 5lakhs should be available with me? Or can i...