For 20 DEC 2012 (Option trading strategy)

Intraday Option trading strategy

Strategy performance report :

On 19 DEC 2012, Stock options entered:

Rank	Buy/Long	Expiry Date	Option Type	Strike Price	Entry price	Exit price	Lot	P/L	Investment
1	SESAGOA	27-Dec-12	CE	Not entered	-	-	-	-	-
2	LICHSGFIN	27-Dec-12	CE	Not entered	-	-	-	-	-
1	SUNPHARMA	27-Dec-12	PE	760	10.85	7.15	500	-1850	5425
2	PFC	27-Dec-12	PE	210	7.95	7.2	2000	-1500	15900
3	HDIL	27-Dec-12	PE	120	3.5	4.45	4000	3800	14000
4	ONGC	27-Dec-12	PE	260	6.2	3.75	1000	-2450	6200
5	BHARATFORG	27-Dec-12	PE	260	0.5	0.9	1000	400	500
6	RPOWER	27-Dec-12	PE	100	5.2	3.9	2000	-2600	10400
7	DENABANK	27-Dec-12	PE	120	2.6	3.3	4000	2800	10400
							Total	-1400	62825
								ROI	-2.23%
								ROII	-1.40%

Initial Investment: 100000
Net Strategy return(%): -1.4%
Absolute Strategy Return on initial investment from 13 Nov 2012(%): 8.44%

Recommended Stock's options for intraday Trading Strategy
Rank	Buy/Long	Expiry Date	Option Type	Strike Price	Entry price	Exit price	Lot	P/L	Investment
1	DLF	27-Dec-12	PE	As per rule	-	-	-	-	-
2	IDFC	27-Dec-12	PE	As per rule	-	-	-	-	-
3	ONGC	27-Dec-12	PE	As per rule	-	-	-	-	-
4	ADANIENT	27-Dec-12	PE	As per rule	-	-	-	-	-
5	LICHSGFIN	27-Dec-12	PE	As per rule	-	-	-	-	-

Please read strategy rules carefully (mentioned below) first before doing anything and if you have any query or doubt then let me know through relevant comment.To know more about rules leave relevant comment.


Entry time: After market opening time for traders(9:15 AM, IST).
Recommended time for entry: 9:15 AM-9:30 AM, IST.

Lot Size: As per your risk taking ability.

Expiry date: Call/Put option with nearest expiry date.

Strike Price:
To buy call option:  Strike price should be below the opening price of respective stock.

e.g.
Suppose Stock XYZ previous day's closing price is 1000.
Strike prices have difference of 20 at each level.
if XYZ gives opening between 980-1000, then buy Call option with strike price 980.
if XYZ gives opening between 960-980, then buy Call option with strike price 960.

Please do not buy call option, if stock XYZ gives opening above previous day's closing price.

To buy put option: Strike price should be above the opening price of respective stock.

e.g.
Suppose Stock XYZ previous day's closing price is 1000.
Strike prices have difference of 20 at each level.
if XYZ gives opening between 1000-1020, then buy put option with strike price 1020.
if XYZ gives opening between 1020-1040, then buy put option with strike price 1040.

Please do not buy put option, if stock XYZ gives opening below previous day's closing price.

Exit:

Rule 1:If XYZ goes above 1040 in case if you have bought a put option with an strike price of 1020 or If XYZ goes above 1060 in case if you have bought a put option with an strike price of 1040.

Rule 2: Before market closing time for traders (3:30 PM, IST).
Recommended time for exit: 3:15 PM-3:25 PM, IST.