Intraday Trade - 11 th March

SHORT IDEA 350 shares @ Market price
Bought  Bhartiaritel 200 shares @  Market Price
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I will update my actual trade in comments section below.


If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Exit Update:(3:15pm)

Bhartiairtel	bought 200 shares	362.75	391.85	5820
Idea	Short 350 shares	154	165.05	-3867.5
			Total Profit	1952.5

Intraday Trade - 10 th March

SHORT BHEL 300 shares @ Market price
Bought CROMPGREAV 500 shares @  Market Price
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I will update my actual trade in comments section below.


If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Exit Update:(3:15 pm)

Bhel	EQ -Short 300 shares	261.4	259.6	540
CROMPGREAV	EQ-Buy 500 shares	172.9	176.95	2025
			Total profit	2565

Positional call

BHEL:

    Buy BHEL 270 Call   @ Market Price(Curreent  price-4.55)
 
    Buy BHEL 260 put @ Market Price(Current price-8.45)

Total investment-4.55+8.45=13 and Lot size is 1000 =RS 13000

Target is 20. 

Intraday Trade - 9 th March

SHORT TATASTEEL 300 shares @ Market price
Bought JSWsteel 150 shares @  Market Price
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I will update my actual trade in comments section below.

If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Stock analysis: TTK Prestige (TTKPRESTIG)

About :

TTK Group  company is in the Indian based company and has  a  many segments of industry i.e  consumer durables, pharmaceuticals and supplements, bio-medical devices, maps and atlases, consular visa services, virtual assistant services and health care services.

TTK Prestige is in the Domestic Appliances sector. It was started on 1955 and engaged in manufacturing pressure cookers and kitchen appliances like pressure cookers, non-stick cookware, gas stoves, rice cookers, induction cooker, kitchen hoods, coffee makers, kettles, sandwich toasters, mixer grinders, wet grinders and many other domestic kitchen products. TTK prestige is the No.1 in Kitchen product in India.  It’s the first kitchenware company in India to receive the ISO 9001:2000 certification.

BSE code for TTK prestige is 517506 and NSE code for this stock is TTKPRESTIG.

Current news:

TT Jagannathan, chairman of TTK Prestige expects Double digit revenue for the in the fourth quarter of FY15. He also says there has been an improvement in the December quarter for 2014. However, the margins will be under pressure for FY15 as top-line has been sluggish, he hopes it will reverse in FY16 and expect 25 percent growth in FY16.

My Analysis:

 TTK Prestige yesterday closed was Rs 3596.00, net change percentage was 5.31. The 52-week high of the share was Rs 4830.00 and the 52-week low was Rs 2700.00.TTK Prestige was an awesome stock in past making huge profit to traders. I am expecting TTK Prestige will stay within range of 3350-3550 for a while.

I request all to wait till it reaches to 3200 to 3250 level, so we can buy this stock at 3200 to 3250.My first target for this stock for long term is 3900 and second target is 4000. It is a good investment stock for long term profit. Compare to last year we can expect good quarter result for this financial year.

Option trading Strategy 3:Covered Call

 When to use: 

In this strategy a trader will Buy a stock and sell calls of underlying stock. An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate. The covered call is a strategy in options trading whereby call options are written against a holding of the underlying Stock. Using the covered call option strategy, the investor gets to earn a premium writing calls while at the same time appreciate all benefits of underlying stock ownership, such as dividends and voting rights, unless he is assigned an exercise notice on the written call and is obligated to sell his shares.

This is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously have a short position via the option to generate income from the option premium. An investor who buys or owns stock and writes call options in the equivalent amount can earn premium income without taking on additional risk. The premium received adds to the investor's bottom line regardless of outcome. It offers a small downside 'cushion' in the event the stock slides downward and can boost returns on the upside. This is also known as a buy-write strategy.

Traders brought some Shares and expect the price to rise in the near future. And he is entitled to receive Dividends for the shares he holds in cash market. Covered Call Strategy involves selling of OTM  call Option of the same underlying Stock. The OTM Call Option Strike Price will generally be the price, where trader will look to get out of the stock. He will receive premium amount from writing the Call option.

 

Risk:

Limited, but substantial (risk is from a fall in stock price). Traders will incur losses on his short position when the stock moves beyond the strike price of the call written. This strategy is generally adopted by the people who are Neutral or Moderately Bullish on the Underlying Stock. The maximum loss is limited but substantial. The worst that can happen is for the stock to become worthless.  In that case, the investor will have lost the entire value of the stock. However, that loss will be reduced somewhat by the premium income from selling the call option.

Profit:

Traders will make profits when the stock price shoots up and pockets the premium which he received from shorting the Call Option. If it comes down then he is willing to exit at a point, the exit point is where he has shorted the Call Option. The maximum gains at expiration are limited by the strike price. If the stock is at the strike price, the covered call strategy itself reaches its peak profitability, and would not do better no matter how much higher the stock price might be.  The strategy's net profit would be the premium received, plus any stock gains (or minus stock losses) as measured against the strike price.  

Max Profit = Premium Received - Purchase Price of Underlying + Strike Price of Short Call - Commissions Paid

 

Example:

Tatamotors  is trading around Rs 568 Levels. Lot size of Tatamotors Option is 500.If you think the current level is bullish in nature and buys Tatamotors future @ Rs 568 from the market. You also shorts one 570 Call Option for a premium of Rs. 15.

Your investment will be Rs. 291500

Future-568 *500 =284000

Option-15*500=7500

Case 1: If Tatamotors closes at Rs. 580.You will get a capital appreciation on your investment of Rs. 6000((580-568)*500) plus the Call Option premium you received from writing it i.e. Rs.2500 (15-10)*500).

Your total gain will be Rs 8500(6000+2500)

Case 2: If Tatamotors closes at Rs. 560. You will make a profit from your writing call incur loss from buying future.

In Future=568-560=8*500=RS 4000 LOSS

In Option If it is close the 560 level the 570 Call should be 0 in closing days so you can get the whole writing amount ie short value 15.

Option= 15 -0 =15 *500 =RS 7500

So your total Profit will be =7500-4000=Rs 3500

Option trading Strategy 2: Short Put

 When to use: 

It is one of the types of option trading strategy. A Short Put Options, also known as Naked Put option strategy. When selling a put option, you are following a sequence of sell-hold-buy, or just sell hold. You are selling your option first, hoping for the price of the better still, you sell-hold and if the market value of the underlying Stock is above the strike price, the option has no intrinsic value and you have no need to buy back at all. 

The seller of a put option is hoping that the market value of the underlying stock will rise, or remain flat, as this will result in a decrease in value of the put option. The seller can then buy back the option at a lower price and realize a profit. Alternatively, if the value of the underlying stock is above the strike price of the option, it is highly unlikely that the option will be exercised. The buyer of the put option is not going to sell their stock at a price lower than the current market price

In this Strategy, the seller will simply wait until the expiry date, at which time the option will expire worthless. The seller would retain the premium they received on the initial sale of the option as a profit.A Bullish options strategy that involves selling short or "writing" a put option. The put options expire worthless and entire premium from its sale is earned by the trader. A trader will Selling puts are often seen as a way to make money in a neutral market. A trader will short the put option if he thinks market is bullish in nature and expects the underlying stock not to fall below a certain limit. l short put if he is bullish in nature and expects the underlying stock not to fall below a certain level.

 

There are several potential advantages in selling cash-secured puts to covered calls. The first is that you pay one commission as opposed to two. (This assumes that you are not assigned, and don't incur the fees that would come with assignment.) Risk management is typically easier with the one position. Puts also often command higher premiums than calls and therefore offer better potential returns. The best way to analyze this is by using the comparative implied volatile.

Risk: 

Unlimited Losses will be there if the stock skyrockets above the trade strike price of put.

Profit: 

Profit will be capped by the premium amount of the put option. Limited to the amount of premium can be collected by trader. The seller of the short put (gets the premium) is betting the stock price will be above the strike price on expiration so he can keep the premium amount of the put option.

Example:

Suppose NIFTY is trading at 8800 Level. If you think the current market situation is bullish on this month and you expect the NIFTY to stay near 8800 to 9000 levels or even rise further until expiry.Hence you will sell one NIFTY 8800 Put option for a premium of Rs.

. X is bullish on the market. He expects NIFTY to stay near

5200-5300 levels or even rise further until expiry. He will sell one NIFTY 5200 Put Option for a premium of Rs 90. Lot size of Nifty is 25.

Your total investment:

Option 5800 put -90 *25 =2250.

Case 1:  

If the NIFTY closes at 5800, then you will receive the maximum profit of Rs. 2250.

If nifty close the 5800 level in expiry day then the 5800 put should be 0

So you can get the full short amount of the put.

Case 2:  

If the NIFTY closes at 8600 level then you will loss Rs 2750

 If Nifty closes 5600 level in expiry day then the 5800 put value will be 200 (5800-5600).