Double Your Investment - Made Simple With Options

Do you people think it is quite possible for low to medium volume traders ?

  • Yes, But Not Always Able To Do Minimum Trades

    Votes: 0 0.0%

  • Total voters
    7
#1
How to Double Your Investment - Made Simple With Options
100% NET PROFIT IN ONE MONTH

Will you believe if I say so? “NO” right?
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Example
Assume Nifty is at 5000 on Sep'11 Expiry, and you are in September series
Buy NIFTY 4900 Put @Rs.20 (take any lot of nifty which is at 20-30 Rs / Any Expiry series )
Quantity 250 i.e. Rs.20 x 250 = Rs.5000.

So you have Rs.10, 000 in your trading account , do day trading with half of the amount to average if the market fluctuates suddenly because you wont have margin for averaging.

So you bought at : Rs.20 x 250(Qty) = 5000
and sold it at Rs.21.and took only Rs.1 as profit and your profit is Rs.250 in a single trade.

Now lets calculate brokerages and taxes and your net profit behind this single trade.

Brokerage 40.00(flat) (Rs 20 to Buy + Rs 20 to Sell)
Stt Total 0.89 Total Tran Charge 8.20
Stamp Duty 1.025 Service Tax 4.82
Education Cess 0.10 Higher Edu Cess 0.05

Total Tax and charges 55.08
Net Profit in this Trade = 194.92

So if the brokerages are less while trading in options, we can retain the profit made with small price fluctuations.

To get the lowest Brokerage in Industry
chat with me on [email protected]
=========================================================
If you do 10 trades in a day which is quite possible it will add up to Rs.1000 per day (Rs.100 -200 per trade as per above example).

Now let’s see how the taxes are calculated which is common to all brokers by NSE

>The current minimum intraday brokerage offered in Options is 30-45 Rs per lot (you may even have high brokerage and if you are paying more brokerage then you should either negotiate or change your broker)
> The service tax is of 12.36% only on brokerage.
> The STT (Security Transaction Tax) is of 0.025% only on selling amount.
> The stamp duty on total turnover for a day is 0.002%.
> Regulatory charges on total turnover for a day is 0.004%
Don’t worry all these taxes will add up to very small amount RS 14.98 for a single trade on above example.
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Have a look at below example, how much money you can make in a month.
> Rs.100 per trade as net profit
> 10 trades per day (how many trades are possible, you will come to know by doing your own
paper trading, according to my estimation 10 trades are quite possible)
> 100x10 = Rs.1000 per day.
> total approximate 20 trading days in a month. So Rs.1000x20 = Rs.20,000

On the other side let’s imagine that you have made losses on some days or not able to trade on some days.
So let’s consider Rs.10000 as compensation for that.

Then also you are making straight 100% (Rs.10000) profit per month.
Can you believe you are just making your investment double in one month? What else you want?

You can make 50% -100 % net profit in one month
Take small profits and do multiple trades
This will assure you that you make profits, and all the profits that you do through out the day will add up to good amount and this is what you want, right?

So the bottom line is forgetting greed factor and taking small profits will make miracle to your investments.
 

deadbrain

Well-Known Member
#2
I pay Rs 50 per lot as brokerage. How would you calculate on that?
 
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#3
hi dead brain,
thanks for reading my post and replying to it .
As I already told in my post that -"The current minimum intraday brokerage offered in Options is 30-45 Rs per lot (you may even have high brokerage and if you are paying more brokerage then you should either negotiate or change your broker)"
What are you exactly asking me, to calculate on 50 rs Brokerage or how to make double the investment with less brokerage?
Well , let me answer you that 50 brokerage is comparatively high brokerage in these days and don't know where you are in these days while others are still charging as low as 30 rs(with /without some prepaid brokerage).

So if the brokerages are less while trading in options, we can retain the profit made with small price fluctuations.

Same is the case with high brokerage

Example
For Nifty , lot size is 50 so the price fluctuation on which you can play is more than 2 rupee s
Take 10 lots (10x50)of Nifty 5000 PUT at 46 rs = 46*500 =23000 and
sold it at 48 =24000 .
rs 1000 profit in single trade but
for 10 lots buying 10 lots selling you are giving hell lot of brokerage
20 lots in total @ 50 rs each =1000 so the profit goes as brokerage even if you see MTM +1000

So you need to trade above 2.20 paisa only if you want to get the brokerage + taxes (roughly calculated)

(brokerage /lot size ) 50/50 =1 rupee for buying and 1 rupee selling so you can play above 2.20 pais with brokerages+taxes (rough calculations)
50/250(bank nifty) lot size=0.20 paisa for buying and 0.20 paisa for selling only as brokerage so you can play above .50 paisa including taxes (rough calculations)

What i am trying to say is if you are interested to reduce you brokerage with well established broker chat with me or send a mail personally.not in the forum.
I have brokerage structure as low as 20 rs and 10 rs per order/lot
Thanks
 

deadbrain

Well-Known Member
#4
yes. I got your point. As i'm used to trade with only one lot per day, and i book profit at aleast after 5 points, i was never bothered by it, but in case of multiple lots, i'll certainly try to work out with my IIFL broker.
 

DanPickUp

Well-Known Member
#7
What kind of entry orders ? ( Based on what ? ) and market or limit or limit with stop loss or what ? And what I do if I am not filled ?

What kind of sell orders ? ( Based on what ? ) and market or when market touched or what ? And what I do when I am wrong filled, means I get less what I need ?

Why should I be successful ten times a day ? ( Any statistic behind it ? ) And if I am successful 10 times a day, why should I go for your option target and not for the much more profitable future ?

Sorry when I ask such stupid questions. I am very clear, that making money with option is very possible.

But it seems to me, that you not explained in a practical way how to reach your mentioned target.

Further I see : Having what ever 10'000 and taking a risk of 5'000 for what ever and then even see an e-mail address which tries to make advertisement for low brokerages.

You know what : This stinks.
 
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#8
Thanks for reading my post and replying to it .
As I already told in my post that you may pay high brokerage with other brokers but IFATALL you people want to reduce that cost and save the money and add it to your investment. I explained with an example.

Anyways I am not here to answer such stupid questions though you are clear how you can make money in options.:annoyed:
But still I answer only becoz to clear others doubts who read this forum.

Many people have their own strategies making money in options but my point is to reduce the cost payed to brokers in Between.

What kind of entry/sell orders ?
Ans:If you don't know or dont have any strategy when to enter/exit DONT PLAY OPTIONS.
I will say dont take /follow anybodies suggestions.

Watch the market on your own ,beware of the factors (Numbers related ,results)that influence market intraday.
Enter at any point, watch for your target.exit when it is close to your target or when it is below your buying price by a Rupee or 2 whatever(Stop loss is acceptable to you.)

After all its all PREDICTION looking at charts ,results numbers etc etc.

Why should I be successful ten times a day ? .... why should I go for your option target and not for the much more profitable future ?
Ans.Yes, you need not be a successful man all the 10 times.
You may not know the daily Volume and Turn over traded in Options
These numbers are same on an average only becoz they are being traded and NOBODY sits idle or pessimistic like you why It will all happen to me and questioning
And the thing Future is far better/safer than Options but you forgot my point in bold earlier post

"So if the brokerages are less while trading in options, we can retain the profit made with small price fluctuations."

I am not saying losing all the money in options and future is safer as you can roll over or hedge with stock whatever !!

HOW TO MAKE MONEY OUT OF SMALL FLUCTUATIONS WITH OPTIONS IF THE BROKERAGES ARE LESS
(Options and Currency Options).
For a future, you need to set a span margin for which you cannot play on small fluctuations and it all becomes Turnover and then charges if you play with small fluctuations.


My point here is you can trade options on your own for just 1-5 rupees
NOT for targets and stoplosses and make huge losses or profits overnight.
Ifatall you feel you can make money out on a daily basis and accumulate it to add it up to invest if not 100% at least 50 % or at least 25 % in a MONTH
in the end be in PROFIT and not in LOSS on expiry.:thumb::clap:

To get that low brokerage I am not here to advertise it on this forum, chat with me on smarthelp007 on gtalk/gmail if you are interested to get it how.Else its upto you even if it stinks close your nose and get away from here.Simple:rofl:!!


:clap::clapping::lol:
 
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