Options to acquire their own significance with the Derivatives Segment, presenting a whole lot of Virtually Risk Free Strategies. We consider a lot of varied strikes coupled with different maturities of one primary stock. So we can potentially make a number of combinations by the application of Call and even Put Options regarding distinct strikes which might many times earn Risk Free returns. Put Call Parity, Unpredictability Spread is your few exceptional Nifty Options Strategies.
Among the many good varieties of a Risk Free Options Strategy currently are accessible in Nifty Options. If you see Nifty Options Chain regarding the June 2013, you can easily create superior Put Call Parity which in turn can certainly present with us risk free returns.
Currently Nifty June Future is in fact running at 5820 on 11th June 2013 at 12.20PM and additionally
Nifty 5700 June Call Option is running at Rs.165
Also Nifty 5700 June Put Options are running at Rs.50
And thus we tend to make Put Call Parity Trade by buying 5700 June Call, Selling 5700 June Put and therefore Selling 1 June Future.
To make it more descriptive
You'll find
1. Bought Nifty 5700 June Call Option at Rs.165
2. Sold Nifty 5700 June Put Option at Rs.50
3. Sold Nifty June Future at Rs.5820
1. Rs. 165 Loss in 5700 June Call
2. Rs.50 Loss in 5700 June Put
3. Rs.220 Profit from Nifty June Future
The total net profit will be Rs.5 at 5600 Levels.
Similarly if Nifty reaches to 5900 levels on maturity then we will have following profit and loss in our portfolio,
1. Rs. 35 Profit in 5700 June Call
2. Rs.50 Profit in 5700 June Put
3. Rs.80 Loss in Nifty June Future
The total net profit will be Rs.5 at 5900 Levels.
And finally if Nifty remains constant at Rs.5820 level at maturity then we will have following profit and loss in our portfolio,
1. R's. 45 Loss in 5700 June Call
2. Rs.50 Profit in 5700 June Put
3. No Profit No Loss in Nifty June Future
The total net profit will be Rs.5 at Presently the net portfolio geeks of the above three trades are zero, which implies that the ultimate impression of these trades has become Zero. Now the disparity in prices at this time whilst commencing the trade has become our net as well as risk free profit.
For Eg. If it turns out Nifty becomes to 5600 levels of maturation we then will likely have following profit and then a loss in one's portfolio, 5820 Level.
As a result the above procedures are revealing a fix benefit of Rs.5 at all the levels related to the market. It is not having any type of concern whether the market rises, crashes or possibly remains to be constant. There are lots of strategies which usually will likely bring in superior returns concerning risk. I highly recommend you note that commonly, In case the Money Options are running at a special offer equated to Out of the Money Options because there's the load relating to STT on expiry of almost all the In the money Options.
But seeing that the maturity is somewhere around 15 days away but it can potentially produce fantastic revenue for investors. We will need to ensure all of the three trades together to protect yourself from the risk of negative market movements. Various sorts of algorithm program stock investing terminals are available which ensure the execution having to do with all the three trades at the time.
Among the many good varieties of a Risk Free Options Strategy currently are accessible in Nifty Options. If you see Nifty Options Chain regarding the June 2013, you can easily create superior Put Call Parity which in turn can certainly present with us risk free returns.
Currently Nifty June Future is in fact running at 5820 on 11th June 2013 at 12.20PM and additionally
Nifty 5700 June Call Option is running at Rs.165
Also Nifty 5700 June Put Options are running at Rs.50
And thus we tend to make Put Call Parity Trade by buying 5700 June Call, Selling 5700 June Put and therefore Selling 1 June Future.
To make it more descriptive
You'll find
1. Bought Nifty 5700 June Call Option at Rs.165
2. Sold Nifty 5700 June Put Option at Rs.50
3. Sold Nifty June Future at Rs.5820
1. Rs. 165 Loss in 5700 June Call
2. Rs.50 Loss in 5700 June Put
3. Rs.220 Profit from Nifty June Future
The total net profit will be Rs.5 at 5600 Levels.
Similarly if Nifty reaches to 5900 levels on maturity then we will have following profit and loss in our portfolio,
1. Rs. 35 Profit in 5700 June Call
2. Rs.50 Profit in 5700 June Put
3. Rs.80 Loss in Nifty June Future
The total net profit will be Rs.5 at 5900 Levels.
And finally if Nifty remains constant at Rs.5820 level at maturity then we will have following profit and loss in our portfolio,
1. R's. 45 Loss in 5700 June Call
2. Rs.50 Profit in 5700 June Put
3. No Profit No Loss in Nifty June Future
The total net profit will be Rs.5 at Presently the net portfolio geeks of the above three trades are zero, which implies that the ultimate impression of these trades has become Zero. Now the disparity in prices at this time whilst commencing the trade has become our net as well as risk free profit.
For Eg. If it turns out Nifty becomes to 5600 levels of maturation we then will likely have following profit and then a loss in one's portfolio, 5820 Level.
As a result the above procedures are revealing a fix benefit of Rs.5 at all the levels related to the market. It is not having any type of concern whether the market rises, crashes or possibly remains to be constant. There are lots of strategies which usually will likely bring in superior returns concerning risk. I highly recommend you note that commonly, In case the Money Options are running at a special offer equated to Out of the Money Options because there's the load relating to STT on expiry of almost all the In the money Options.
But seeing that the maturity is somewhere around 15 days away but it can potentially produce fantastic revenue for investors. We will need to ensure all of the three trades together to protect yourself from the risk of negative market movements. Various sorts of algorithm program stock investing terminals are available which ensure the execution having to do with all the three trades at the time.
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