Comment on Stop Loss orders - Limit/Market

sharekumar commented on 11 Aug 2013, 12:15 PM

Hi,

I know that this question is not appropriate at this post, but If you can give me Answer It will really help me.

I am very confused about Options.

I have search over the internet here and there and find out that — Option Buyer can get Limited Loss and Unlimited Profit, While Option Seller can get Limited Profit and Unlimited Loss.

So As a Retail Costomer What I have to do.

What I am thinking about Options is,

1. If I am Bullish, I Buy Nifty 5600 Call Option @ Rs.50 and When Nifty go at 5800 Call Primium Price also go high @ Rs.70 and at that time I Place Sell Call Option Order to Square Off my Open position and book Profit.

2.If I am Bearish, I Sell Nifty 6000 Call Option @ Rs.100 and When Nifty go down at 5800 Call Primium Price also go down @ Rs.80 and at that time I Place Buy Call Option Order to Square Off my Open position and book Profit.

3.If I am Bullish, I Sell Nifty 6000 Put Option @ Rs.100 and When Nifty go down at 5800 Put Primium Price also go down @ Rs.80 and at that time I Place Buy Put Option Order to Square Off my Open position and book Profit.

4. If I am Bearish, I Buy Nifty 5600 Put Option @ Rs.50 and When Nifty go at 5800 Put Primium Price also go high @ Rs.70 and at that time I Place Sell Put Option Order to Square Off my Open position and book Profit.

Now In Above Mentioned Conclusions 1 to 4, How many are right ? And If there is something wrong

Please tell me. And also Tell me Which strategies are less Risky in above 1 to 4 for retail customer.

Please Clarify My doubt.

Cheers….

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