option strategy

Top Gainers and Losers in Nifty Index today

The Nifty FMCG index was trading 0.38% up at 25,919 at mid-noon hours with shares of United Breweries, Britannia Industries, ITC Ltd, United Spirits and Dabur India Ltd with an up-tune of 1.98 %, 1.62 %, 0.85 %, 0.62 % and 0.10 % respecptively, as the top gainers. However, shares of Godrej Industries, Tata Global Beverages, Glaxo Smith Kline, Marico, Hindustan Unilever, Colgate-Palmolive and Emami were trading in the red around that time. Top Gainers in Nifty Index are - HCL Tech, Infosys, Tata Consultancy Services, Tech Mahindra, Zee Entertainment, Wipro, Kotak Mahindra Bank, IndusInd Bank...
Read More

Option Strategy: Covered Call

In covered call strategy call option is sold against already own stocks. Professional investors write covered calls to increase their investment income. For example, assume that on 01, January a trader Mr A owns 100 shares of XYZ company. XYZ currently trading at Rs 100 but Mr. A pretty sure it will stay below Rs 105. To generate a little bit of extra income, he sells Mr. B a call option with February expiration date and a strike price of Rs 105. The Call option is priced at Rs 3 per share and it controls 100 shares. By selling the call option, Mr. A receives a Rs 300 premium today in exch...
Read More

Option Strategy: Long Call ; Buying call

This is most basic option strategy for traders who are new in Option trading. This strategy is also known as Buying call strategy. I this strategy the downside risk is limited. When traders are bullish about the prospects for a stock/index, buying call can be an excellent way to capture the upside potential with limited downside risk. For example, Nifty is currently trading at 8285.15 with 0.12% gain, We are bullish on Nifty. We buy Call Option with a strike price of Rs 8300 at a premium of Rs 60.00 expiring on 29 October 2015. if Nifty goes above 8360.00(strike price + Premium price), we w...
Read More