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Saint
Hero Username: Saint
Post Number: 19098 Registered: 01-2011 Posted From: 68.13.100.193
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, July 26, 2013 - 01:34 pm: |
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Feelgud: Indusind and ttk prestige titan are good bets of F & O .. U see that swingss
Indusind options lo ledu.... |
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Feelgud
Comedian Username: Feelgud
Post Number: 1072 Registered: 06-2009 Posted From: 122.167.114.116
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, July 26, 2013 - 01:32 pm: |
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Saint:
Indusind and ttk prestige titan are good bets of F & O .. U see that swingss |
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Saint
Hero Username: Saint
Post Number: 19086 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, July 26, 2013 - 11:24 am: |
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Feelgud:folks just for my education purpose , is there one in this DB made big money in futures and options ?.. End of the day I know some people lost big money in Indian stock market F & O .. then moved to long term investment ..
recent gaa ina bank stocks example: INR is getting weak everyday...RBI will do something (put restrictions) ...so ee funda base chesukuni oka 2 months expiry date tho put calls petti vunte...(imagination based on market conditions)..kummi avathala esi vunde vallu money... ilanti specific scenarios tagilinappudu work out avvochu..elanti push/pull factors lekunda just blind guess ante kastam emo.. |
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Saint
Hero Username: Saint
Post Number: 19085 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, July 26, 2013 - 11:20 am: |
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Feelgud:
annai anni kalisosthe one year lo nenu vunta...aa list lo |
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Feelgud
Comedian Username: Feelgud
Post Number: 1065 Registered: 06-2009 Posted From: 122.167.114.116
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, July 26, 2013 - 10:50 am: |
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Saarang
Side Hero Username: Saarang
Post Number: 2301 Registered: 06-2012 Posted From: 71.197.151.52
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, July 26, 2013 - 04:31 am: |
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Feelgud: folks just for my education purpose , is there one in this DB made big money in futures and options ?.. End of the day I know some people lost big money in Indian stock market F & O .. then moved to long term investment .. But I read in some books how some exceptions people became overnight millionaires in USA F & O ..
Options lo baaga expert ayithe Telugu DBs tiragaru ani naa ofinion....it is difficult to beat the pros in the options field.
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Feelgud
Comedian Username: Feelgud
Post Number: 1059 Registered: 06-2009 Posted From: 122.167.114.116
Rating: N/A Votes: 0 (Vote!) | | Posted on Friday, July 26, 2013 - 03:53 am: |
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folks just for my education purpose , is there one in this DB made big money in futures and options ?.. End of the day I know some people lost big money in Indian stock market F & O .. then moved to long term investment .. But I read in some books how some exceptions people became overnight millionaires in USA F & O .. |
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Saint
Hero Username: Saint
Post Number: 19061 Registered: 01-2011 Posted From: 68.13.100.193
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 08:55 pm: |
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Statebank of India di choosthunna CMP:1795 Calls: Strike Price:SP Lot size:LS Last Traded Price: LTP I see only Aug 29th Expiration date : LS: 125 SP::LTP 1700:160 1750:118.25 1800: 94.90 1850: 70.4 1900: 50 1950: 35 2000: 25.4 2050: 17 2100:11 ila 2400:1 ika Puts kosthe: Idi same as calls..29th Aug expiry 1550: 11.5 1600: 17 1650: 26 1700: 38 1750: 54 1800: 75 1900: 130 2000:210 ivi ee matram attractive gaa levu..... |
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Saint
Hero Username: Saint
Post Number: 19060 Registered: 01-2011 Posted From: 68.13.100.193
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 08:47 pm: |
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Bump |
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Saint
Hero Username: Saint
Post Number: 19057 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:33 pm: |
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Gotcha..naku 2006 nunchi account vundi.. |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4348 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:32 pm: |
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Vjawarrior:in the case if fb hits 37, my calls will goto 3...but as I sold calls for 36, I need to buy shares at 37 and sell them at 36 which will be 1 dollar loss...so 2 dollars profit....if fb is below 34, my calls are gone....but the premium I got for 0.8 usd will be there...In this case....my loss is 1.48-0.8 = 0.68....am i doing the math right?
That is correct. |
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Saint
Hero Username: Saint
Post Number: 19056 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:32 pm: |
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https://secure.icicidirect.com/customer/quicklesson/WOptions .asp free time lo read seyyataniki kkada posthuthunna |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8270 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:28 pm: |
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Chillarodu: If the stock goes to 36, your profit will be 2.00-0.8=1.2(1200) However in this case you are limiting your profit. Even if the stock goes more than 36, you will only make 1200. However your debit is much less than the 1st case
in the case if fb hits 37, my calls will goto 3...but as I sold calls for 36, I need to buy shares at 37 and sell them at 36 which will be 1 dollar loss...so 2 dollars profit....if fb is below 34, my calls are gone....but the premium I got for 0.8 usd will be there...In this case....my loss is 1.48-0.8 = 0.68....am i doing the math right? but appreciate ur effort in explaining to us Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Gotcha
Hero Username: Gotcha
Post Number: 11771 Registered: 02-2008 Posted From: 8.19.193.14
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:27 pm: |
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saint icci lo demat account open chesava or is it in ur fathers name? This real estate is for sale. |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4341 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:21 pm: |
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Vjawarrior:yeah.....but u minimised ur loss by 700 bucks than the average stock holder...and always the stock can go up next quarter if u still hold and kip writing calls....ee angle try cheyyali
that's correct. you have to keep selling the calls every month to take premiums. this will workout for the stocks that doesn't move much. |
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Seinfeld
Hero Username: Seinfeld
Post Number: 14918 Registered: 03-2008 Posted From: 198.36.95.12
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:21 pm: |
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Saint:eeti meeda inka oka avagahana raledu mama...mundu analysis, feasability study chesthe..tarvatha alochoddam..but US lo oka 10k tho start cheddam anukuntunna....
vake thanks |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4340 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:19 pm: |
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Chillarodu:ee spreads ni konchem example tho cheppu guru..
Ok, taking the example of FB speculation: FB has short term upward movement and if you think it will goto 36 by the end of Aug expiration. Case 1: Buy 10 contracts of 34 Aug Call Premium is $1.48 So you will pay 1480 Now let's say if the stock goes to 35 by expiration, your option price will be $1. So you will loose 0.48 (480) Stock has to be 35.48 on expiration for break even. If it goes to 36 your profit is 0.52 (520) Case 2: Buy debit spread Buy 34 call = 1.48, sell 36 call = 0.68 So your debit = 1.48-0.68 = 0.8 ($800) If the stock goes to 36, your profit will be 2.00-0.8=1.2(1200) However in this case you are limiting your profit. Even if the stock goes more than 36, you will only make 1200. However your debit is much less than the 1st case |
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Saint
Hero Username: Saint
Post Number: 19055 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:15 pm: |
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Seinfeld: inti cost entha? down payment entha adigaru ninnu... nuvvu entha down sethunav?
ee illu mama? |
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Saint
Hero Username: Saint
Post Number: 19054 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:15 pm: |
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Seinfeld:Saint baa entha pedthunav inti meeda?
eeti meeda inka oka avagahana raledu mama...mundu analysis, feasability study chesthe..tarvatha alochoddam..but US lo oka 10k tho start cheddam anukuntunna.... |
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Saint
Hero Username: Saint
Post Number: 19053 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:14 pm: |
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Chillarodu: Assuming you are talking about my FB trade.. You can loose too if the stock goes down. In my case, let's says if the stock went down to 24 then I would have lost 26000-24000+700=1400
yes mama..but...stocks nee daggire vuntayi kada..neeku 700 bonus ..if u r planning to hold this for long term... it is kind of unrealised loss kada.. |
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Seinfeld
Hero Username: Seinfeld
Post Number: 14917 Registered: 03-2008 Posted From: 198.36.95.12
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:12 pm: |
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saint baa inti cost entha? down payment entha adigaru ninnu... nuvvu entha down sethunav? |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8267 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:11 pm: |
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Chillarodu: In my case, let's says if the stock went down to 24 then I would have lost 26000-24000+700=1400
yeah.....but u minimised ur loss by 700 bucks than the average stock holder...and always the stock can go up next quarter if u still hold and kip writing calls....ee angle try cheyyali Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Seinfeld
Hero Username: Seinfeld
Post Number: 14916 Registered: 03-2008 Posted From: 198.36.95.12
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:10 pm: |
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Saint:
Saint baa entha pedthunav inti meeda? |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4339 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:08 pm: |
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Saint:I think if u can learn this properly..you will always make a profit....but ur profit will be limited, in case if it goes wrong..
Assuming you are talking about my FB trade.. You can loose too if the stock goes down. In my case, let's says if the stock went down to 24 then I would have lost 26000-24000+700=1400 |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8266 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:07 pm: |
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Chillarodu:try spreads
ee spreads ni konchem example tho cheppu guru...also answer my other question I just posted.....thanks for answering bro Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8265 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:06 pm: |
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Chillarodu:I am one of them. But I didn't loose. I made less profits that's all. Example: I have 1000 stocks of FB that I bought for 26. (debit = $26000) two weeks back I wrote 27 call options(10 contracts) for $0.70 (Credit = $700) Today stock went up to 33. So my stocks value is $33000 But I wrote 27 calls and someone exercised my options. So he will pay me $27000 and took my stocks. My profit is $27000+$700=$27700 So by writing calls I limited my profit on upside.
got it...very well explained bro...thanks a lot....need to look into this.... now tell me this...I have 200 contracts of Nokia 4 calls for Jan 2014....with this, can I write calls for oct 2013 nok 4 calls and get the premium...wht happens if my calls are exercise...how will I be covered as I dont have the equity but only some long term Jan calls? Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4338 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:05 pm: |
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Vjawarrior:
never write(sell) naked options. It's too risky. Either cover with stocks (covered calls) or try spreads |
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Saint
Hero Username: Saint
Post Number: 19052 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:05 pm: |
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Chillarodu: I have 1000 stocks of FB that I bought for 26. (debit = $26000) two weeks back I wrote 27 call options(10 contracts) for $0.70 (Credit = $700) Today stock went up to 33. So my stocks value is $33000 But I wrote 27 calls and someone exercised my options. So he will pay me $27000 and took my stocks. My profit is $27000+$700=$27700 So by writing calls I limited my profit on upside.
I think if u can learn this properly..you will always make a profit....but ur profit will be limited, in case if it goes wrong.. |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4337 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:03 pm: |
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Chillarodu:My profit is $27000+$700=$27700
sorry, my profit is 1700 |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4336 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 04:02 pm: |
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Vjawarrior:ull get the premium ...but ull loose on the uptick...isnt it... folks who wrote FB 30 calls lost big time today....for the ones expiring jul26
I am one of them. But I didn't loose. I made less profits that's all. Example: I have 1000 stocks of FB that I bought for 26. (debit = $26000) two weeks back I wrote 27 call options(10 contracts) for $0.70 (Credit = $700) Today stock went up to 33. So my stocks value is $33000 But I wrote 27 calls and someone exercised my options. So he will pay me $27000 and took my stocks. My profit is $27000+$700=$27700 So by writing calls I limited my profit on upside. |
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Saint
Hero Username: Saint
Post Number: 19051 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:56 pm: |
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Chillarodu: Don't trade options until you learn about greeks (delta, gamma etc..) and volatility You need to understand how the option price moves..
yes I dont...I will firt study everything..then I feel confident, I may get into this.. I wanted to play in 2 different ways in stock market 95% of money into long term investing...5% of my money short term bettings (its kind of gambling) based on short term market directions |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8262 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:55 pm: |
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Vjawarrior: ull get the premium ...but ull loose on the uptick...isnt it... folks who wrote FB 30 calls lost big time today....for the ones expiring jul26
chillarodu...konchem idi confirm cheyyava... Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4335 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:54 pm: |
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Saint:if it goes above strike price and if I forgot to sell it on the expiry date..vaadu expire ayye time ki vunna price ki excrcise chesi..differnce manki pay chesthada?
Yes |
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Saint
Hero Username: Saint
Post Number: 19049 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:53 pm: |
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Chillarodu: if you buy calls and if stock is below the strike price on expiration date then options will expire worthless. You won't loose anything more than what you have already paid for the calls. . In either case nee daggara ninchi broker money theesukovatam vundadhu. if the stock price is above the strike price then you will get the money
if it goes above strike price and if I forgot to sell it on the expiry date..vaadu expire ayye time ki vunna price ki excrcise chesi..differnce manki pay chesthada? |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4334 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:52 pm: |
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Saint:price takkuva ani options house lo open chesa annai account...100 free trades itchadu...
Don't trade options until you learn about greeks (delta, gamma etc..) and volatility You need to understand how the option price moves.. |
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Saint
Hero Username: Saint
Post Number: 19048 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:52 pm: |
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India lo only 1 or 2 months contracts yee chooyisthunnadu ICICI vaadu....general ga anthe vuntada? 6 months or 1 year vundava? |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4333 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:48 pm: |
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Saint:excrcse cheyaytam ante..ammatam / konatam broker chesi aa difference manaki pay cheyyatam kaani...mana daggira kaani lakkotam kaani chesthada? if an option is expiring today..who will be there to buy it?
if you buy calls and if stock is below the strike price on expiration date then options will expire worthless. You won't loose anything more than what you have already paid for the calls. . In either case nee daggara ninchi broker money theesukovatam vundadhu. if the stock price is above the strike price then you will get the money |
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Saint
Hero Username: Saint
Post Number: 19047 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:36 pm: |
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Casino:inkokati, schwab lo account open chey. they do have weekly seminars of 1 hour.. they go over different topics...
price takkuva ani options house lo open chesa annai account...100 free trades itchadu... |
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Saint
Hero Username: Saint
Post Number: 19046 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:35 pm: |
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Chillarodu: You don't have to wait until options expiration date. you can sell your option anytime before that. You can also exercise your options. if you do nothing until expiration and if the options are in the money then broker will settle the funds by exercising the options. If you don't have enough money then broker will exercise and then see the stocks.
excrcse cheyaytam ante..ammatam / konatam broker chesi aa difference manaki pay cheyyatam kaani...mana daggira kaani lakkotam kaani chesthada? if an option is expiring today..who will be there to buy it? |
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Saint
Hero Username: Saint
Post Number: 19045 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:34 pm: |
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Casino: actually instead of playing with options, however I do write options if I have a position in that particular stock. advantage enti ante, it's like a dividend on your investment if you are not going to sell the stock. if I wrote a option at a certain strike price, I will lose my stock if the stock goes over that price. However I will still get the premium and the difference.
wow idi cool anukunta... anni meeru chesthnunara idi? |
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Saint
Hero Username: Saint
Post Number: 19044 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:32 pm: |
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Chillarodu:
Casino:
Thanks anni...clear ayyidi... |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8261 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:28 pm: |
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Casino:I will lose my stock if the stock goes over that price. However I will still get the premium and the difference.
ull get the premium ...but ull loose on the uptick...isnt it... folks who wrote FB 30 calls lost big time today....for the ones expiring jul26 Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Casino
Side Hero Username: Casino
Post Number: 2261 Registered: 01-2012 Posted From: 198.46.98.226
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:24 pm: |
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Saint:
inkokati, schwab lo account open chey. they do have weekly seminars of 1 hour.. they go over different topics... actually instead of playing with options, however I do write options if I have a position in that particular stock. advantage enti ante, it's like a dividend on your investment if you are not going to sell the stock. if I wrote a option at a certain strike price, I will lose my stock if the stock goes over that price. However I will still get the premium and the difference. |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4325 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:22 pm: |
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Chillarodu:see the stocks
sell the stocks |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4324 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:20 pm: |
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Saint:also manam profit loki vacham..expiry date roju evaru kontaru avi? mana daggire vundi expire ipothe?
You don't have to wait until options expiration date. you can sell your option anytime before that. You can also exercise your options. if you do nothing until expiration and if the options are in the money then broker will settle the funds by exercising the options. If you don't have enough money then broker will exercise and then see the stocks. |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4323 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:16 pm: |
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Saint:case 1: ) ivvala X price 1000 rupees nenu 3 months tarvatha 1005 vuntadi annattu gaa ivvala price 5rs price ki 1000 lot konna after 2 months price 1200 ayyindi...so appudu nenu ammithe naaku manchi profit vasthunda or loss vasthunda? mana ACF mama itchina example valla idi profitable avuddi anukuntunna... case 2 ivvala x price 1000 rupees nenu after 3 months 900 avuddi ani lots 3 rupess ki 1000 konna after 2 months price 700 ayyindi...appudu nenu ammithe labham vasthuda? nastam vasthunda?
details sarigga levu.. why don't you take real time example? Assuming you baught calls in first case, yes you will get profit. nee second case lo emi konnavu? |
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Casino
Side Hero Username: Casino
Post Number: 2260 Registered: 01-2012 Posted From: 198.46.98.226
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:15 pm: |
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ee roju ABC stock value - 50 dollars You are thinking the stock will surely go lower than the current value and even below 40 dollars after 6 months. So, you will buy a put option for strike price 40. adhi say will cost you 1 dollar/stock. as one contract will have 100 stocks, you have to invest 100 dollars to buy one contract or 500 dollars for 5 contracts. if the stock goes below 39 dollars on the day of expiration you will get your dollar back. If it goes to 38, 200/contract or 1000/5contracts. If it goes to 30, you made a killing as you made 1000/contract or 5000/5contracts. However if the stock stays above 40, you will get nothing. |
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Casino
Side Hero Username: Casino
Post Number: 2259 Registered: 01-2012 Posted From: 198.46.98.226
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:12 pm: |
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options will be bot and sld in terms of contracts. each contract has 100 stocks of the underlying. so if you want to buy 500 stocks of a particular ticker after 6 months, you will buy 5 contracts today. ee roju ABC stock value - 50 dollars You are thinking the stock will surely go up over 60 dollars after 6 months. So, you will buy a call option for strike price 60. adhi say will cost you 1 dollar/stock. as one contract will have 100 stocks, you have to invest 100 dollars to buy one contract or 500 dollars for 5 contracts. if the stock goes over to 61 dollars on the day of expiration you will get your dollar back. If it goes to 62, 200/contract or 1000/5contracts. If it goes to 70, you made a killing. However if the stock stays below 60, you will get nothing. |
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Saint
Hero Username: Saint
Post Number: 19042 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:06 pm: |
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also manam profit loki vacham..expiry date roju evaru kontaru avi? mana daggire vundi expire ipothe? |
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Saint
Hero Username: Saint
Post Number: 19041 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 03:04 pm: |
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Bump |
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Saint
Hero Username: Saint
Post Number: 19024 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 02:02 pm: |
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Feelgud:
choostha annai |
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Saint
Hero Username: Saint
Post Number: 19023 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 02:02 pm: |
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case 1: ) ivvala X price 1000 rupees nenu 3 months tarvatha 1005 vuntadi annattu gaa ivvala price 5rs price ki 1000 lot konna after 2 months price 1200 ayyindi...so appudu nenu ammithe naaku manchi profit vasthunda or loss vasthunda? mana ACF mama itchina example valla idi profitable avuddi anukuntunna... case 2 ivvala x price 1000 rupees nenu after 3 months 900 avuddi ani lots 3 rupess ki 1000 konna after 2 months price 700 ayyindi...appudu nenu ammithe labham vasthuda? nastam vasthunda? |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8248 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 11:39 am: |
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Saint:ippudu manaki ammutha anna vaadu ammaka pothe? ala kooda avuthunda?
u mean option or stock when the option is exercised....can u be more clear? Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Casino
Side Hero Username: Casino
Post Number: 2257 Registered: 01-2012 Posted From: 198.46.98.226
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 11:33 am: |
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Saint:ippudu manaki ammutha anna vaadu ammaka pothe? ala kooda avuthunda?
that's why are dealing with a broker.. tooch antaniki chance vundadhu |
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Saint
Hero Username: Saint
Post Number: 19014 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 11:31 am: |
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thank u casino, chillrodu, vjy n chintu... ippudu manaki ammutha anna vaadu ammaka pothe? ala kooda avuthunda? |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4319 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:42 am: |
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Options is a zero sum game like poker. If you gain then some one looses and vice versa. So if you are amateur then chances of loosing money in options trading are more.. |
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Casino
Side Hero Username: Casino
Post Number: 2242 Registered: 01-2012 Posted From: 198.46.98.226
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:37 am: |
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options can be used to trade in many ways.. 1. protection for your holdings by buying calls / puts on your short / long holdings, 2. making extra dividend on your exiting holdings (if you have a long position, you can write covered calls etc).. 3. pure speculation during the earning release times... 4. Or if you don't have money to invest on the whole and if for sure you feel that the stock will go up, just buy a call or vice versa if you think the stock is overvalued.. you said you enrolled for CFA level 1 in some previous thread, complete chesi kummeseyyi stock market lo |
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Chillarodu
Side Hero Username: Chillarodu
Post Number: 4318 Registered: 03-2008 Posted From: 140.247.0.64
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:36 am: |
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Saint:
Check this link http://www.chalanachithram.com/discus/messages/125/154417.ht ml for other posts Call and Put options give you the right to buy or sell the underlying security... I will try to explain in simple terms.. Lets say.. you want to buy a house in Hyderabad Hightech city cause you know the housing market will go up and you can make money on that. Let's say the house you are looking for is 50 lakhs. However you do not have 50 lakhs right now to buy. You will go to the seller and say you would like to buy the house in six months. In order to hold that house for you, he will say ok, give $50,000 rupess for the agreement. Now this contact will give you the right to purchase this house any time in this six months for 50 lakhs. Let's say the house price went up in 2 months and now it 60 lakhs. With the agreement seller is obligated to sell the house for 50 lakhs. Let's the house price went down to 45 lakhs..then you are not obligated to purchase that house for 50 lakhs. You can forfeit the contract. With this you will loose 50 thousand that you have spend to buy the contract. In the above scenario House = stock 50 lakhs = strike price agreement = call option six months = expiration date 50,000 = call option price |
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Chintu002
Side Hero Username: Chintu002
Post Number: 2012 Registered: 04-2010 Posted From: 14.97.73.111
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:36 am: |
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Chintu002:then the call option may decrease,
may decrease kaadhu, will decrease. Chiranjeevi is my God! Jai Chiranjeeva! |
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Chintu002
Side Hero Username: Chintu002
Post Number: 2011 Registered: 04-2010 Posted From: 14.97.73.111
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:35 am: |
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When you are bulish, buy Call option When you are bearish, but put option Example: Nifty is at 6100. You are expecting that it will touch 6200, in this month. In this case you should buy 6200 call option. Nifty is at 6100.You are expecting that it will go down to 6000, in this case you buy 6000 put option. Result: If you buy call option at 20/-, lot size is 50, you invest 1000/-. If nifty touches 6100, then the option price may go beyond 35/-. If it decreases to 6000, then the call option may decrease, and it may become '0' at the end of the month. Profit vasthe picha picha gaa vasthundhi. Loss ayithe nuvvu entha pettavo anthe loss avuthaavu. In above example, you may lose only 1000/- only. WHere as in futures, you may lose more and more since you are trading with margin amount. Chiranjeevi is my God! Jai Chiranjeeva! |
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Andhrawala
Megastar Username: Andhrawala
Post Number: 22555 Registered: 03-2008 Posted From: 152.51.56.1
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:34 am: |
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Saint: so lets say...700 kochindi anukundam.....so do we sell it @ 7? ila ithe very long calls pettukunte...madhayalo eppudoo kappudu periginappudu ammmukovachu kada...ade short term ithe loss vastahdemo kadaa? then why do ppl buy short term calls?
700 ki vasthee nee option value koodaa peruguthundhii.. as the stock price comes closer to stockprice and expiry time is not near the option value increases No Signature |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8242 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:34 am: |
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Saint: rendu cases lo hit avvaka pothe? malli mana daggira aa price kone vaadu evvadu leka pothe? padipoddi ani pettam anukooo....adi padaledu..appudu loss ela vastadi? inka clear ga arhdam kaledu..
lets sa u bet FB will fall to 22 by tommorow and u bought the put yesterday for 0.69 usd...now since FB raised....all ur money is gone as the put crumbled to 0.01 today....even if u try to sell...no one will take it....so its wortheless....this is where options are risky....naa qualcomm last week options expired worthless as i bet qcom will hot 62.50 last week...but it didnt Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Feelgud
Comedian Username: Feelgud
Post Number: 1054 Registered: 06-2009 Posted From: 122.167.114.116
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:34 am: |
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http://www.stocks-for-beginners.com/futures-options-trading. html inthakanna easy ga yevarina explain chestara |
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Saint
Hero Username: Saint
Post Number: 19008 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:31 am: |
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Andhrawala:Options ki expiry date vuntundhi Por example AAPL 437 vundhi nee expectation ee year end lo AAPL 700 cross avvudhi anukuntaavu Option to buy AAPL at 700 is now 5.50 so oka contarct of 100 AAPL is $550. AFter January u loose ur 550 But AAPL aa time kallaa if it moves closer u earn money
so lets say...700 kochindi anukundam.....so do we sell it @ 7? ila ithe very long calls pettukunte...madhayalo eppudoo kappudu periginappudu ammmukovachu kada...ade short term ithe loss vastahdemo kadaa? then why do ppl buy short term calls? |
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Saint
Hero Username: Saint
Post Number: 19007 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:29 am: |
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Vjawarrior: u bet tht a stock will hit so and so price by this time....calls for upside...puts for down side....options increase based on a stock price movement along with time quotient....Volatility helps for an option increase....lot of artcles online....chillarodu aariteradu options lo
rendu cases lo hit avvaka pothe? malli mana daggira aa price kone vaadu evvadu leka pothe? padipoddi ani pettam anukooo....adi padaledu..appudu loss ela vastadi? inka clear ga arhdam kaledu... |
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Andhrawala
Megastar Username: Andhrawala
Post Number: 22552 Registered: 03-2008 Posted From: 152.51.56.1
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:25 am: |
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Options ki expiry date vuntundhi Por example AAPL 437 vundhi nee expectation ee year end lo AAPL 700 cross avvudhi anukuntaavu Option to buy AAPL at 700 is now 5.50 so oka contarct of 100 AAPL is $550. AFter January u loose ur 550 But AAPL aa time kallaa if it moves closer u earn money No Signature |
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Vjawarrior
Side Hero Username: Vjawarrior
Post Number: 8236 Registered: 02-2011 Posted From: 69.180.197.200
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:24 am: |
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Saint: takkuva price ki options konatam ante anthe % perigithe..its like buying equity only kada? differences emiti? full price kattala konnaka?
u bet tht a stock will hit so and so price by this time....calls for upside...puts for down side....options increase based on a stock price movement along with time quotient....Volatility helps for an option increase....lot of artcles online....chillarodu aariteradu options lo Naakonchem tikkundi...kaani daanikoka lekkundi... |
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Saint
Hero Username: Saint
Post Number: 19002 Registered: 01-2011 Posted From: 12.22.163.132
Rating: N/A Votes: 0 (Vote!) | | Posted on Thursday, July 25, 2013 - 10:18 am: |
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call ante buy, put ante short sell ani ardham ayynidi...but anthaku minchi okka mukka kooda teleedu asalaki options ante emiti? spot price okati vunte option price inkoti vuntandi...aa difference emiti? stock price perigithe (x%) option price kooda x% yee perugudda? or +enni rupees ithe anthe perugudda? takkuva price ki options konatam ante anthe % perigithe..its like buying equity only kada? differences emiti? full price kattala konnaka? oka vela mana stock < 20% padithe ..options lo manaki loss kooda only 20% ye vuntada? futures ante future lo intha price ki kontam ane kadaa septham...and we buy in lots and we pay only some 10% of the amount...if the stock goes down..brokarage vaaadu manaki cheppakundane ammesthada? ee optins ki algorithms sala vunnayi..avemiti? |