Option Trading Details With Market Updates

 oie_sCvge579107a

Sensex, Nifty surged for the second day; Nifty above 8000 levels.
Markets gained for the second straight session to kick-off the September F&O (Future and Option) series on a robust note. After opening with a helpful gap up and staying firm in the first half of the day, indices gradually lost ground and just managed to close with modest gains. However Nifty managed to end above 8000 mark gains 53 points to end at 8001 on the other hand Sensex gains 161 points and settled at 26392.

HEADLINES FOR THE DAY:    
•    Shasun Pharma, STAR gains after Bombay HC (high court) gives nod for merger.

•    Logistics shares extend its previous day gains; VRLLOG, GATI gains.

•    Bosch gains on opening new state-of-the-art unit in Bangalore.

•    Bank of India soars as the bank is planning of capital infusion.

•    ONGC shares moved higher after get nod for 1 year extension in Vietnam block.

•    NTPC records highest single day generation of 733.12 MUs.

KEY STOCKS FOR THE DAY:
•    Gammon Infra shares dip as a company about to divest nine projects to BIF Holdings.

•    Dolphin Offshore shares moved higher for the second straight day as company to acquire 2 vessels for $70 million in 2 years.

•    Kalpataru Power moved higher on the positive news flow in the market that company bagged new job orders worth Rs 880 crore.

•    MMTC shares gains on the media reports that govt had approved company’s bid for import of 1,000 tonnes of onion at Rs. 45 per kg.

•    DLF shares gains on NSE on the back of stake sale buzz in one of its residential projects.

•    TTK Prestige shares rise after company sign settlement with workers.

•    IT stocks were in limelight in today’s trading session; HCL tech gains more than 4 percent.

•    Escorts, Jubilant, Bajaj Corp, 8kmiles, VRL Logistic hits fresh high on NSE (National Stock Exchange) today.

•    Lloyd Electric rises as company acquires Noske-Kaeser’s Rail & Vehicle global business.

•    Shares of HDFC moved higher after bank raise Rs 2000 crore through bonds.

•    Oberoi Realty gains while Bharti Infratel dips in an otherwise mark on the back of block deals in these stocks.

•    Lupin shares gains for the 2nd trading day after Pharma Company said they god nod from USFDA for Ulcer capsules.

•    The Cipla Pharma major company said that they are expecting 20 percent growth in revenues in the current fiscal (FY16).

•    Aurobindo Pharma, reported that they got the final nod from USFDA to manufacture and market Entecavir Tablets.

CALLS FOR NEXT TRADING SESSION:
•    NIITLTD EQ gains and locked with upper circuit today as well as trading near around its resistance more buying seen in this stock. Buy above 74.80 targets 75.60/76.30/77 SL 74.

•    JSW Energy had shown good recovery from lower levels, more buying is expected in stock. Buy above 76.80 targets 77.60/78.40/79.10 SL 75.90.

WEEKLY STOCKS:
•    Delta Corp EQ is heading towards its important resistance point above it more buying could be seen, volumes as well as long bullish also indicates fresh buying from here. Buy above 85.50 targets 87.20/89 SL 83.50.

•    Nilkamal EQ shares consolidating near around its resistance breakout in stock are expected in coming trading session, buying could confirm above this level, trend line could be seen in this stock on daily charts. Buy above 1015 targets 1035.30/1056 SL 994.

 

What are the Options?

An ‘Option’ is a special kind of security that can be traded at a specific price  value within a specific time period with special Option Tips, in swap over for a non-refundable upfront puts. An option deal proposes the share buyer the authority to purchase, not the responsibility, to purchase at the specific price value or define date. Generally, we assume options are a different kind of derivative product.

There are two kinds of option, put and call. In the case of a put option, the trader has right to sell a security, while in the case of the call they have rights to buy a security.

They can utilize as:

Leverage: It is trading tool by which  options assist you to profit from variation in share price value without going down the total price of the share.  Although you can manage above the shares without purchasing them complete.

Hedging: Traders can also be employed it to defend yourself from market variation in the  share price and hire you to trade the shares at a definite price for a specific time period.

Premium: The special payment prepared by the share  buyer to the seller to get pleasure from the privileges of an option agreement.

Strike Price / Exercise Price: The pre- decided  value for the price at which the securities or asset can be traded.

Strike Price interval: This is a special time interval where different strike prices for an option deal can be traded. These are calculated by the exchange  in their statics on which securities or assets are traded.

There are usually at least 11 strike prices set for each kind of option trade in a specified month – in which 5 prices above the level of the spot price, 5prices below the level of spot price and one price value on the same level of the spot price.

Although they have their benefits, option trading is more complicated than other regular trading. It described for an excellent perception of trading and investment performance as well as steady monitoring of market movement to save investment against losses with superior Share Tips, Equity Tips and  Nifty Tips.

About Options:

As future agreement reduces risks for trader by setting  a pre-decided future value for a fundamental security or asset, option agreement process the same, however with no the compulsion to buy that exists in a future agreement.

The seller in the case of option trading  is known as ‘option writer’. On the other hand the buyer in option trading, the share seller has no authority and obligation sell the security or assets at the decided price value, if the share buyer decides to perform the options deal on or before the granted date, in the require exchange for a true investment for the share buyer.

There is no any physical exchange available for documents in the instance of performing into an option agreement. The contacts are just recorded in the stock exchange on which they are  processed. These Here we are describing the major categories of option.

 Call Option:

The ‘Call Option’ provides to the shareholder  the right to buy a specific asset at the strike price value on or before the termination date of arrival for a premium paid truthful to the seller. Hence call options frequently become more costly as the value of the fundamental asset enlargement. Call options are named as ‘C’ in  a short form for online quotes.

Put Option:

The Put Option provides the shareholder the authority to sell a specific asset or securities at the strike price value all the times on or before the termination date of arrival for a premium compensated up front. As you are able to sell a stock at any agreed instance on your expert tips such as Stock Tips and Share Tips, if the spot price value of a stock drops throughout the deal period, the holder is secluded from this drop in price through the strike price that is specified.

 

Leave a Reply

Your email address will not be published. Required fields are marked *