| Author | Message | ||
     Entikaburlu Comedian Username: Entikaburlu Post Number: 1785 Registered: 07-2011 Posted From: 67.247.83.224 Rating: N/A |
Oddu vayya.. thini thogune rojulu potayi. ivi time-bound deals. unnecessary tension. having said that, Option is a transaction that gives you a right to buy or sell a security with no obligation. adi ardham chesukuni aa vidhamga munduku pondi. | ||
| Scallion Side Hero Username: Scallion Post Number: 9781 Registered: 05-2009 Posted From: 206.123.17.17 Rating: N/A |
Three months lo thelavaka pothe oe ardham kaka pothe or trend catch cheyaleka pothe.... akadi tho vadhi leyatam better, rather than perusing more Jai NTR, Jai Jai TDP | ||
| Chillarodu Comedian Username: Chillarodu Post Number: 1038 Registered: 03-2008 Posted From: 12.170.52.134 Rating: N/A |
3 months is very less time to understand options. After 3 months I would invest using virtual money. There are many brokers who offer virtal trading which will be with real time quotes. After you are comfortable with your results then you can start with real money. Espcially when you are trading options, Money Management is far more important than your technical expertise.. It all depend on yoru metality.. My System.. At any point of time only 20% of my total account will be in play. Rest of 80% would be cash. No single trade should be more than 5%. So if you start with $10,000 then never invest more than 2000 at any point of time. Each trade should not exceed more than 500. So you will place 4 different trades worth 500. Making mistakes in options trading is very common as beginners. In that case, you will not loose all at once. Good Luck! A diamond with a flaw is better than a common stone that is perfect. | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16911 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
annai .. thanks .. i will be very very very careful ..  Just Jagan | ||
| Vijay77 Comedian Username: Vijay77 Post Number: 1249 Registered: 06-2010 Posted From: 199.41.197.24 Rating: N/A |
This is the best advice, kaani ee advice paatinchadam chala kastam. Idi patinchenta patience vundadu. Options chala risk ani thelise sariki chala losses vasthayi. First options investment/game chala interesting gaa vuntundi. Literature collect chesi chala thelisipoyindi ani digutharu. Market nee predictions vaipu velthey, nee portfolio chala baaga improve avuthundi. Okasari reverse lo velthey motham aaviri ayipothundi. Volatility ardam chesukone sariki nee portfolio lo chala changes vasthayi. Okkosaari nee stocks peruguthayi, options value thagguthayi(delta,gamma,theta,vega,volatility effect chesukonentha time vundadu). Chillarodu cheppinattu oka 3 months options study cheyyakundaa enter avvaku, options chala chala risk. Neeku losses thattukolenu anukonte assalu enter avvoddu. Intial few months lo long calls/long puts ki velloddu. Just spreads konukko. Atleast options ante ardam avuthundi, profits peddagaa rakapoyinaa. First year antha profits kanna market study meeda concentrate chesi game enjoy cheyyu. Oka saari game loki digina tharvatha emotions ni control cheyyadam chala kastam. Pulpfiction annai!Oka 3 months tharvatha ee post choodu, okko sentence okko gem ani feel avuthavu. | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16910 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
chillarodu bro .. thanks .. will read it a couple of times Just Jagan | ||
| Chillarodu Comedian Username: Chillarodu Post Number: 1037 Registered: 03-2008 Posted From: 12.170.52.134 Rating: N/A |
May be true but if you are good at it that is your advantage...cause options trading is zero sum game. Meaning the money is not created nor lost it will just move from hand to the other like in poker.. okadiki loss ante vere vaadiki profit... A diamond with a flaw is better than a common stone that is perfect. | ||
| Chillarodu Comedian Username: Chillarodu Post Number: 1036 Registered: 03-2008 Posted From: 12.170.52.134 Rating: N/A |
Similar to stocks you can sell the options too. Now in my previous example, the contact that you have purchased with 50,000 rs will worth 1 lakh if the house price go up to 60 lakhs. So you can see that contract(call option) to some one else for 1 lakh and make profit of 50,000. Usuall I do not put any stop losses on options as the bid and ask difference would be more than what you see in stocks and they could get executed if you have stop loss. Now Put example.. If you buy AAPL put (AAPL Nov11 390 Put) - this means expiration date is Nov thrid friday of 2011 and strike price is 390. Currently the premium for this put option is $17. So 1 contract = $1700 If you buy this put, you will get a right to sell 100 AAPL stock for $390 anytime before 3rd friday nov 2011. Let's say the aapl goes 350 by that time, you still can sell the aapl stock for 390. your profit would be (390-350-17)*100=2300 If the appl stock is above 390 before expiration then you will loose 1700. However you can sell the put option anytime before expiration...May be you apply the stop loss here Let's say if appl starts going up then you can sell the put option for less and take losses. ------------ Now you can also sell call and puts (this is not for beginners)... Also most of the time you will buy or sell individual call or put options. You do it in multiple leggs like buy and sell call or puts together for a single security. There are lot of startegies on this like spreads, butterflys, straddles, condors etc.. You first need to learn more about GREEKS (alpha, delta, theta etc..) as option premiums will be changed based on so many factors. A diamond with a flaw is better than a common stone that is perfect. | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16909 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
scallion bro thanks ... have a nice  Just Jagan | ||
| Scallion Side Hero Username: Scallion Post Number: 9780 Registered: 05-2009 Posted From: 206.123.17.17 Rating: N/A |
Deni gurinchi telusu kovali anukontunavu ??? Call Option, Put Option or Underlying lo edhi chedhamani ?? oka mukyamayina vishayam emiti ante.... Most people who trade options lose money this is because even when you are correct about the price direction fair value of the option thelavakunda doosukone pothe, you will get hit badly kaabati naa suggestion Exchange Listed Options ki stick ayipo.... Strike Price & Expiration Date correct ga untayi ika pothe operations gurinchi telusu kovali ante In-the-Money, Out-of-the-Money, At-the-Money lanti terms Google cheyi also Option Premium, Intrinsic Value, Delta, Gamma, Time Decay, Theta, Vega lanti terms ani avagahana chesuko.... last ga chepedhi enti ante, ipudu reserch cheyatam modhalu pedithe at least wait for next three months before you do your first deal, start watching market very closely, you by your self know when to hit the road... selavu, nenu ika soda thagi vasthaa.... Jai NTR, Jai Jai TDP | ||
| Raman Side Hero Username: Raman Post Number: 2669 Registered: 01-2009 Posted From: 159.182.1.4 Rating: N/A |
EK ante nenu kaadu entikaburlu kurradu aa title kajesaadu nuvvu nanni call chesavu . Manaki currency trading tappa migatavi telvadu  | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16907 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
doskaa bro .. xyz is the name of the stock option .. like apple,tcs etc Just Jagan | ||
| Dosakaaya Side Hero Username: Dosakaaya Post Number: 6259 Registered: 02-2010 Posted From: 151.191.175.204 Rating: N/A |
Pulpfiction >>> options generally if you have a stock, to protect yourself konukkovatam better, rather then playing the option alone. options for a given month expire on 3rd friday of the month. so time and volatiility batti option value decide avuthadhi. instead of xyz, specific gaa cheppu bro, then explain chesthanu EK is a better candidate but normally EK responds in the evening. | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16906 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
 bro ... 2 things ? where does the concept of stop loss fit in the example u gave ? and u gave an example of buy .. how does sell scenario work ? is an example possible please Just Jagan | ||
| Chillarodu Comedian Username: Chillarodu Post Number: 1035 Registered: 03-2008 Posted From: 12.170.52.134 Rating: |
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 A diamond with a flaw is better than a common stone that is perfect. | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16905 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
doskaaaaa .. thanks .. xyz 400 put buy 10 sl 8 target 12 antey ippudu nenu emi cheyyaaali ? Just Jagan | ||
| Dosakaaya Side Hero Username: Dosakaaya Post Number: 6258 Registered: 02-2010 Posted From: 151.191.175.204 Rating: N/A |
Call is something that you are betting that a stock would hit a certai price or stay above a certain price on a give date (generally options expiration day) Put is something that you are betting that a stock would be below a certai price or stay below a certain price on a give date (generally options expiration day) you buy in contracts and each contract size is 100. P.S - I bought GLD recently, stay away from it... mana leg padithe GLD kaadhu, anything has to go down laa vundhi | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16900 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
put .. call .. enti bro adhanthaaaa ?  Just Jagan | ||
| Chillarodu Comedian Username: Chillarodu Post Number: 1034 Registered: 03-2008 Posted From: 12.170.52.134 Rating: N/A |
enti thala guchukuntunnav? A diamond with a flaw is better than a common stone that is perfect. | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16898 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
 Just Jagan | ||
| Chillarodu Comedian Username: Chillarodu Post Number: 1033 Registered: 03-2008 Posted From: 12.170.52.134 Rating: N/A |
opps link http://biz.yahoo.com/opt/education.html A diamond with a flaw is better than a common stone that is perfect. | ||
| Chillarodu Comedian Username: Chillarodu Post Number: 1032 Registered: 03-2008 Posted From: 12.170.52.134 Rating: N/A |
idhi follow avvu... for beginners You need lot of education on this even to start to your first trade... telisi theliyaka options trading chesthe chethulu kaalchukuntaav... I have been doing this from past 7 years A diamond with a flaw is better than a common stone that is perfect. | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16896 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
bump for other traders Just Jagan | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16895 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
bump Just Jagan | ||
| Pulpfiction Hero Username: Pulpfiction Post Number: 16894 Registered: 02-2009 Posted From: 122.175.5.150 Rating: N/A |
Options trading antey enti ? how do we execute and complete an options trade ? konchem cheppandi .. TIA Just Jagan |
