Monday, November 24, 2008

BUY PUNJLLOYD AROUND 150 S.L 140 TGT 165-178-185

BUY CHAMBLFERT ABOVE 32 S.L 29.25 TGT 38-42.2-47

BUY RELIANCE ABOVE 1127 S.L 1080 TGT 1218-1287-1308

Monday, November 17, 2008


SELL INFOSYS IF CLOSING BELOW 1200 S.L 1260 TGT 1087-1045-985

Wednesday, November 12, 2008

SELL RELIANCE IF CLOSING BELOW 1150 S.L 1220 TGT 1090-1027-935

SELL ICICIBANK BELOW 415 S.L 442 TGT 370.5-355

SELL PUNJLLOYD BELOW 197 S.L 210 TGT 178.8-165.5

Saturday, November 8, 2008

Option Strategies
1). Bull spread: :

when the market is expected to go up (bullish outlook) a bull spread can be created to make profits in rising market with minimum amount of risk. Bull spread is created by buying a call/put of lower strike price and selling another call/put of higher strike price.

2). Bear spread:
When the market is expected to go down (bearish outlook) a bear spread can be created to ensure profits in a falling market with minimum amount of risk. Bear spread is created by buying a call/put of higher strike price and selling another call/put of lower strike price.
3). Bottom straddle or Straddle purchase:

when the market is expected to be volatile and the direction of it is not clear bottom straddle strategy can be created. Bottom straddle can be created by buying a Call and a Put together of the same strike price and same expiry date.

4). Top straddle or Straddle sell:

when the market is expected to move in a sideways zone a top straddle can be created. Top straddle can be created by selling a Call and a Put together of the same strike price and same expiry date.

5). Butterfly Spread:

when the market is expected to move in a sideways zone a Butterfly spread can be created. Butterfly spread can be created by buying two call options, one with low strike price and the other with comparatively high strike price, and selling two call options having the strike price which lies in the middle of above two strike prices and which is close to the current prevailing market price.

6). Strangles:

when the market is expected to be volatile and the direction of it is not clear bottom straddle strategy can be created by buying a call of higher level and buying a Put of lower level. Both of these price levels of buying Call & buying Put forms the basis of ranges of Index beyond which it is expected to remain. If the prices remain outside the price range he makes profit otherwise loss.

7). Strips:

when the market is expected to be volatile and the direction of it is not clear bottom strips strategy can be created by buying a call and two puts of same strike price. Investor makes profit if the exercise price close far from the strike price of Call and Put taken.

8). Straps:

when the market is expected to be volatile and the direction of it is not clear bottom straps strategy can be created by selling two calls and a put of same strike price. Investor makes profit if the exercise price close far from the strike price of Call and Put taken.

Sunday, November 2, 2008

A FEW GOOD REASONS TO USE A STOP LOSS

1. Using a stop loss forces you to identify the risk of your trade you must not enter a trade without knowing the risk.
2. A stop loss works best when it is set at the point where the reason for the current trade disappears.
3. Using correctly, a stop loss will reduce risk more than it will reduce profits.If you are stopped out be sure you have a plan for reentering the next trade.
4. A stop loss is not likely to save you in a price shock, but you might get lucky.
5. A stop loss lets you sleep better.
6. Done correctly a stop loss is like the cost of insurance you dont mind paying, but dont want to collect ..........So please dont trade without stop loss.