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Thursday, November 29, 2007

ANALSYSIS OF ALL CALL-PUT STRATEGIES OF NOV...


chambel fertilizer.....

sell chambel fertilizer call 55@3

margin needed to sell call 55@3= 27000

u will earn by this=6900*3=20700

chambal has

support1=45.5
support2=44.5

resistance1=48
resistance2=51.5
ressistance3=54

if it crosses 54 thn buy future of chambel.....

let say buy future at 54.2

margin needed for chambel fertilizer= 107000
so u can earn in total=20700+5500=26200

FOR THIS U NEED TOTAL MARGIN = 107000+27000=134000

BUT I WILL ADVICE PEOPLE DNT TRADE THIS STRATEGY UNLESS U HAVE= 2LACTHIS I PREFER COZ WE NEED TO RASIE TRIGGER PRICE IF PRICE OF CHAMBEL GO UP......SO TO RAISE TRIGGER PRICE WE NEED TO ADD MARGIN.....ITS STRICLY ADVICABLE TO HAVE 2LAC FOR THIS TRADE....

MOST IMPORTANT IS THT IT HAS 107% VOLATILITY.....
WCH IS IDEAL FOR CALL SELLING.....

@HARMAN.....


ANALYSIS........
POSTED ON NOV 2....

CHAMBAL FERTILIZER CLOSES AT 59.85

IN IT AS MY RESISTANCE LEVEL OF 54 WAS BROKEN...

AS I SAID TO BUY FUTURE OF IT....

AFTER BREAKING MY REISTANCE IT WENT ALL THE WAY TO 80...
BUT AFTER THT IT FELL BUT NEVER WENT CLOSE TO 54....

SO AFTER BUYING FUTURE U WAS FREE AS UR CALL WAS COVERED WITH FUTURE...AND THT PRICE WAS NEVER BEEN TESTED AGAIN AFTER BREAK OUT......

EVN THOUGH IT FELL BUT NEVER WENT CLOSE TO 54....

IN THIS CASE AS SELLING PRICE WAS 3...
BUT AS I SUGGESTED TO BUY FUTURE ABOVE 54....
SO 1 FROM HERE ALSO....
SO IN TOTAL PROFIT 4*6900=27600....

ENJOY......
@ HARMAN.....

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