My intraday bets on options

[snowy]

Hi

Thanks to joy_mitali for this entire thread not just for the information provided, but also because it is a boon for people like me who trade with a small capital.

Just a clarification. How is the brokerage calculated in sharekhan for options ?

Regards,
Kalpana.

 

[joy_mitali]

Hi Snowy,
Its true that option trading in intraday can earn u significant money,with a very limited capital---but it can really bring in huge losses too----be very careful---whoever goes for such options---
For eg., let us consider---my NTPC100CALL----I gave the buy price at 1.1---target 1.5--S.L..75(the risk takers to buy 1/more lots at at .7)---Now feeling the market trend----- I myself tbought the call at .85-----there afer---it fel down to .5---(where the loss is around 1500)---I bought another call at .55---and sold both lots at 1.15----Even those ----who bought acc. my advice--along with the risk taking ability(1/more lot at .7)---the price rose to 1.25 at end hr.---thereafter selling it at that price---they also would have made profit---
VSNL320 CALL---became a winner---not at my coated price---but at different price range-----
SATYAM600CALL and 580PUT----well couldnt really make it---as per my prediction--
Others calls----All cant be stated in an open forum(Hope u all understand my limitations)
Regarding brok. calc----Sharekhan is no exception---
The Brok. calculation is:
Brok.=(%Brok./100)*(Strike Price+OptionBuy price per lot)*(No. of lots*Lot_Size)
eg.,
If % brok.=.07%(ie,7paisa)---lot size =3250(for NTPC)---no. of lots=2
Strike Price=100(considering NTPC100CALL):
Then Brok.=(.07/100)*(100+1.1)*(2*3250)
Hope---Ur Query is satisfied:
Regards,
joy_mitali

 

[snowy]

Hi Snowy,
Its true that option trading in intraday can earn u significant money,with a very limited capital---but it can really bring in huge losses too----be very careful---whoever goes for such options---
For eg., let us consider---my NTPC100CALL----I gave the buy price at 1.1---target 1.5--S.L..75(the risk takers to buy 1/more lots at at .7)---Now feeling the market trend----- I myself tbought the call at .85-----there afer---it fel down to .5---(where the loss is around 1500)---I bought another call at .55---and sold both lots at 1.15----Even those ----who bought acc. my advice--along with the risk taking ability(1/more lot at .7)---the price rose to 1.25 at end hr.---thereafter selling it at that price---they also would have made profit---
VSNL320 CALL---became a winner---not at my coated price---but at different price range-----
SATYAM600CALL and 580PUT----well couldnt really make it---as per my prediction--
Others calls----All cant be stated in an open forum(Hope u all understand my limitations)
Regarding brok. calc----Sharekhan is no exception---
The Brok. calculation is:
Brok.=(%Brok./100)*(Strike Price+OptionBuy price per lot)*(No. of lots*Lot_Size)
eg.,
If % brok.=.07%(ie,7paisa)---lot size =3250(for NTPC)---no. of lots=2
Strike Price=100(considering NTPC100CALL):
Then Brok.=(.07/100)*(100+1.1)*(2*3250)
Hope---Ur Query is satisfied:
Regards,
joy_mitali

Thank you for the word of caution and for the information provided. Actually I think as far as options are concerned, the brokerage is almost like that for futures, and probably option trading requires a lot of creativity (like using new strategies etc.) otherwise since we always trade with a stop loss it becomes almost similar to trading futures I think.

Regards,
Kalpana.

 

[joy_mitali]

Hi all,
My views on Monday's trade:
A strong close on the last day of the week is generally followed by a strong opening on Monday(exceptions always r thereBut I truely feel that as because the F&O closing date is in this week----there may be twist and turn in the tale----for the market to be the winner---

My bets for tomorrow:
1)Buy VSNL300PUT at 2.5 or below(if market increases initially) and
Buy VSNL340CALL at 1.75--to 2--(make adjustments)
2)SATYAM580PUT at around 3.00(make adjustments) and SATYAM 620CALL
3)If u feel the market may have a strong uptrend----buyRIL800CALL at around 4---otherwise if u feel bearish trend buy RIL760PUT
Regards,
joy_mitali

 

[joy_mitali]

HI all,
3 days left for for F &O closing-----and its been a very interesting session today----Even though NIFTY fell by 50 points----SATYAM and VSNL were in grren most of the time of the day---barring the last 10 mins----
A lot of VSNL 320---calls have been bought----and VSNL fell inthe last moment----VSNL may fall below 300 tomorrow----if market falls----But the variation in VSNL option prices is too slow----
SATYAM600CALL was ruuning high throughout the day----fell in the last moment----Tomorrow may be a interesting day---
TISCO fell by more than 4%----may rise tomorrow---or even fall a bit more---worth watching and trading in 360CALL,370CALL,370PUT----
Regards,
joy_mitali

 

[vishal2345]

Dear Sir,
I am very new to options trading and need your help for some quries.
I bought put option of SBI. Details below:
Strike price:880
Bought at : 10.5
Present rate: 3.6
Lot size: 500
Now pls. clarify me if i sell my option at this rate of 3.6. Then my loss will be (10.5 - 3.6) * 500 = Rs.3450 or Rs.3450 + premium paid.
If i sell at 13(assume) the my profit will be (13 - 10.5) * 500 = 1250 or 1250 - premium.
Pls. reply me at the earliest so that i can take some action on my option.
Another query is how is time duration of the expiry date effect the price of stock options.
If time duration decreases price move higher or lower?

thanks & Regards
Vishal Mengi

 

[drsrik]

Dear Joy
You have a message under Want to learn Options Trading . Please check and reply.

Thanks

Cheers

 

[Karuna]

Dear Sir,
I am very new to options trading and need your help for some quries.
I bought put option of SBI. Details below:
Strike price:880
Bought at : 10.5
Present rate: 3.6
Lot size: 500
Now pls. clarify me if i sell my option at this rate of 3.6. Then my loss will be (10.5 - 3.6) * 500 = Rs.3450 or Rs.3450 + premium paid.
If i sell at 13(assume) the my profit will be (13 - 10.5) * 500 = 1250 or 1250 - premium.
Pls. reply me at the earliest so that i can take some action on my option.
Another query is how is time duration of the expiry date effect the price of stock options.
If time duration decreases price move higher or lower?

thanks & Regards
Vishal Mengi

Hi Vishal,

If you sell at 3.6 your loss will be (10.5-3.6) * 500 = 3450 because you have paid 10.5 and u will receive 3.6 for squaring it off.

If you sell at 13 your profit will be (13-10.5) * 500 = 1250 because you have paid 10.5 and you are getting 13.

If the time duration decreases the time value decreases and then naturally the price also decreases or rules closer to the underlying's price.

Hope it is clear.

Regards,
Karuna

 

[joy_mitali]

Hello Vishal--and disrik,
I m sorry---I saw this thread quite late----just not the time I have now---but--I will discuss them in this thread soon---
Sorry again,---but iwll come soon---
Regards,
joy_mitali