Option Letter (for 3rd July 2008)
While trading options we will always buy either calls or puts. We are going to trade only in liquid calls and puts so that we are able to exit at the earliest. Always trade in options of the current month. (All prices of Call or Puts are updated daily before sending to you. Any question do email us back)
  • New trader may only trade in Nifty options. Depending on your capital you may go on  increasing your exposure.

  • The target price will be  50% return on your investment, for you to exit out of option, if not otherwise mentioned. If  by exercising the option at closing , the targets are met, then exercise the options.

  • The stop loss will be two days closing below the buying price of the options, if not otherwise mentioned. 

Even though market has taken a support at 4000 nifty, but it is still very volatile. Buy below mentioned hedged options as per the instructions.

Take the position at  Share Name Lot Size Type (C/P) Strike Price Stop Loss                                              
Call
If Reliance spot is above 2150 after 10.15 am Reliance 75 Call  2100 Two days closing below buying price.
Put
If SAIL Spot is below 138 after 10.15 am SAIL 1350 Put 130 Two days closing below buying price

We are holding the below mentioned options

Take the position at  Share Name Lot Size Type (C/P) Strike Price Cost Price Initial Invest. LTP on 2nd July  Current Invest. %  Profit and Loss 50% profit target Remarks
2.14 pm on 2nd July 08 Nifty 50 Call 4100 112 5600 158.10 7905 +41.2% 168 Two days closing below buying price.

Tata Steel put was bought on 1st July 08. Target was met on 2nd July 08. Review of the put given below.

Take the position at  Share Name Lot Size Type (C/P) Strike Price Cost Price Initial Invest. Quitting price as on 2nd July. Liquidated Investment %  Profit and Loss High Price Remarks
12.52 pm on 1st July 08 Tata Steel  382 Put 720 49.25 18814 69 26358 +40.1% 74 Target was met at 10.41 am on 2nd July 08.

Review of the put Initial Investment Rs.18814, Liquidated Investment Rs.26358 Profit Rs.7544


A sideways market does not give good moves but the moment market starts moving the returns turn out to be quite good. In the long run we will find that playing the full momentum of a stock or Index gives better return on our investment though in sideways market we feel the pinch of it. 
 


For any quick email reply please email me at neera@crnindia.com


Disclaimer : Trading in stock market is very risky and there are every chances of making losses.