Friday, October 17, 2008

on 12/9/2008, Last Price for NIFTY Call option expiring on 25/9/2008 [Strike Price of 4400/-] was Rs.54.70 and Put option was Rs. 205.50. Considering the abovementioned belowmentioned are my very basic questions:


1. Whether I can BUY call option i.e. @ 54.70 and simultaneously, in an another contract, SELL Put option which is @ 205.50 ? If I do so what will be the effect if NIFTY crosses 4400 on or before 25th Sept.

and

2. Whether unless and untill I buy Call / Put Option I am not allowed to sell Put / Call option.
I am not yet trading in FNO, hence, seniors Please clarify.
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Dear Mr Koranne,
Let me try to answer your question. My answer in the same serial order as your question is as under :

1. Yes,you can buy Sept 4400 call for Rs 54=70 and also sell Sept 4400 put for Rs 205=50. These are two independent trades. If Nifty goes above 4400 before expiry,the price of the call you have bought will go up and the price of put you have sold will go down making both trades profitable. Before expiry you can sell these contracts anytime. On expiry suppose Nifty closing price is 4500,then the call you have bought will be atomatically excercised by NSE at 4500 thus giving you credit of Rs 100 x the qty .Your profit will be Rs 100-Rs 54=70 the price you paid for buying call. At 4500 the 4400 put you have sold will expire worthless and you will keep the entire 205=50 premium you collected.

2 No,there is no restriction on selling any call or put (nothing like you cannot sell unless you have bought something).You can sell any call/put provided you understand the risk involved and know how to manage it.



So far we have talked only about profits,but consider what happens if the nifty goes to 4000. Your put sold will be excercised at 4400-4000 giving you a debit of 400 .Also the 4400 call you have bought will expire worthless,so losses on both the contracts.

Initially dont sell options till you become familiar with it and know how to escape with minimum damage if mkt goes against you.



Best Wishes,Trade well !!!
All 3 cases are applicable when you have already bought an option.


1) Squaring off - if you have bought the option then you can very well sell it in the market.. So selling back the option in mkt is Squaring off. It is used by traders how have bought the option to make quick profit and close the position.


2) Exercising - As an option holder, you have the right (for call holder, to buy something or to sell something as put holder). So you can exercise your right and buy /sell the underlying security. In India, option exercise is settled in Cash.. so you will get the credit/debit based on the exercise price of the security and your strike price. Very few people buy option with the purpose to exercise them. Used by option buyer, who want to buy the stock at strike price. Or used by people who wants to sell and close the position but don't find the buyers in the market.


3) Expiry - Options have limited life so one fine day, they are going to expire. If you haven't taken action 1 or action 2 above before the expiry, then they are going to expire. At that time, if the option is in the money, then you will get/pay the money. It is decided by the settlement price on the day of expiry with respect to the strike price. It is sort of forced exercise by Exchange.
Out of the money options are expired worthless so no action is required.
80%+ options expire worthless. Used by people to hedge their positions, used for income generating strategies etc.


Happy Trading.
PLEASE ANSWER THE FOLLOWING QUESTION

CALL OPTION

1) If I Think That A Particular Script Will Go Up , And I Buy A Call Option Of The Script, And If It Goes Up Then
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I Will Get Profit Is It Right ( Yes / No ) , But I Also Want To Know Whether The

A) Premium Will Increase

B) Premium + Strike Price Will Increase
C) Only Stick Price Will Increase

PUT OPTION

2) If I Think That A Particular Script Will Go DOWN , And I Buy A PUT Option Of The Script, And If It Goes DOWN Then
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I Will Get Profit Is It Right ( Yes / No ) , But I Also Want To Know Whether The

D) Premium Will Increase
E) Premium + Strike Price Will Increase
F) Only Stick Price Will Increase

I Have Heard ( In General ) That After 10th Of Every Month The Premium / Strike Price / Both Will Go Down Is It True

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You require more understanding of option basics.I have marked answers to yr Q in bold. The strike price never increases or decreases ,it remain same one you trade a contract with a particular strike price.

It is only the premium that increases or decreases.

Best Wishes,Learn well and trade well !!!!
CALL OPTION TRADING ::

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Hi,
I want to add my question here.Please help me!
1.Say I have Nifty March call 3100 premium 60(I dont know exact premium!)
2.Nifty goes to 3200 by march end.
3.What I have to do for a profitable trade?
squre off the position before expiry, say for a premium of 100(I just gussed)and collect (100-60) * 100 =4000 or
wait for expiry to be exercised to get (3200-3100)*100 = 10000,Is it possible?
4.If we do not square off the position will the exchange automatically exercise it?or I wiil lose the premium paid?
Please help me.
thanks

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ANSWER :


Yes, in the money options are automatically exercised by the exchange on expiry.
Your profit in both cases will be the same. i.e. Rs. 4000.
If you do not square off, you will be paid off Rs. 10000. Your profit will be less the premium paid (Rs. 6000). So your profit will be Rs. 4000.
★•º† VIKASH ★•º†


DEC,08 ---> 18-19 K

DEC,09 ---> 24-25 K

DEC, 10---> 29K -30 K

DEC,2011 ----> 26K -- 28 K


DEC, 2012 --> 34K --35K

DEC, 2013 --> 38K --39 K


2014 ------> 40,000 ( IN 6 YEARS )

Saturday, October 11, 2008

RPL !!

BUY RPL !!

CMP: 182

SL: 166

BEST BUY ----> 145 -- 160 !!

TARGET ---> 297--310 (1 YEAR)



BUY ADLABS FILMS !!

CMP: 661
SL: 602
BEST BUY: 560 -- 600

TARGET : 2600 -- 2800 (24 MONTHS)

500 % RETURN IN 2 YEARS , A TRUE MULTIBAGGER!!


UTV SOFTWARE !!

BUY UTV SOFTWRE

NSE Symbol: UTVSOF
Sector: Media and Entertainment

CMP : 797

SL : 610

BEST BUY (700-750)


TARGET (18 MONTHS ) ----> 2200 -- 2500 ( 400% RETURN )

DEPENDS ON MARKET CONDITION........BUT IT WILL BE A SURE MULTIBAGGER IN LONG TERM !!




BARTRONICS INDIA




BUY BARTRONICS INDIA




CMP : 159
BEST BUY (142 --147)
SL : 127

TARGET --> 340--350 (15-18 MONTHS)

Saturday, October 4, 2008

ARUNS PICKS .. .. .. !!!

Plenty of you seem to be immensely curious about my portfolio and the holdings of mine.Well let me disclose I have got 113 scrips in my portfolio most of them being 'investment free bets.Now heres the reason why I have them.Still my portfolio is down by 18% from the highs of january.

1)Core projects:-They are talking about 3500crs turnover in the coming 3-4 years.

2)Bhagwati banquets:I thought i would myself open a caterning busines until bhagwati got listed.

3)Indiabulls retail:Because guys like sameer gehlaut,rajeev rattan owns it.

4)Saag rr infra:Turnover of 65crs order book of 700+a reputed mnc being the parent.

5)Confidence petroleum:Turnover to grow 80% CAGR till 2011.

6)Glenmark pharma:Only company in the pharma space which I understand.

7)Nesco:Because it has got some 65 acre land in gurgaona nd has the indian exibihition centre under its fold.

8)Klg capital:Because nikhil gandhi bought at a higher price than of mine.

9)Jpt sec:Same as above reason.

10)Jai balaji industry:Because aditya jajodia has promised to deliver an EPS of 650rs within 5-6 years.

11)Mold tek technology:Because it prsents the unique business mix of kpo and plastic.

12)Sejal glass:One of the bigger player quoting at a huge discount to its ipo price and also because its quoting at less then 2.2 P,E 1.6yrs forward.

13)AXIS IT&T:Because Rajeev chandrasekhar is all set to make it a bigger and better entity with his 1500crs+cash and rich conatcts.

14)Valuemart technologies:Mr vasudevan owns it.

15)Victory projects:The payment gateway is all set to catapult it into a differnt league.

16)Educomp solutions:Coz the company is all set to teach english to the koreans and the chinese.

17)Jai corp:Because several mutual funds bought at a price of above 1200 so why not i put in few at 270 odd?

18)Pioneer embroderies:Its present marketcap is around 28crs-It has got 60crs worth of real estate,150 hakoba retail stores,5 manufacturing units and its an industry leader.

19)Hanung toys:Because its making toys at a cheaper cost than the chinese players.People would keep making children and they would play with toys...lolz

20)Master trust:Because its present in most aspects of the finance arena.From broking to merchant baking and all.Mudar patherya and lalit dua are having it too.

21)Crew bos:Coz it has got a good pedigree who on their days can make wonders.A solid fashion accesory play.

22)Larsen&Toubro:Its not an investment but an asset for me.

23)Sumedha fiscal:This company at 8rs deseves more than an investment.So u see i roped in it.Planning to increase my stake to around 1%.Pays a dividend yiled of 6% too.

24)Hind lever:Surprise,surprise Arun has got HUL in portfolio.Why?Coz in bad times like these when midcap would melt it would protect my money.

25)HDIL:I hate real estate but this HDIL is a very big company.It was at 1432 on january,I recently bought at 190 for a trading perspective.

26)Ennore coke:It belongs from the 16000crs sriran group with a market cap of 50crs.They should make it big.Turnover should be 35crs this yr vs nil.

27)Deccan gold mines:I love gold much more than my several girl freinds.Often have presented them gold templates but now gold being too expensive left no choice but to embrace deccan gold mines.Production should commece from 2010.

28)Havells india:Mr anil gupta is a very dynamic entreprenur and this company has got a huge brand visibility.I hail from a village and there too people speak of it.This brand stuff would help it to make wonders going forward.

29)Interworld digital:Digital screening is the next boom for sure.Film producers can save 60000rs per print if they asociates wth interworld.And at 2rs it has limited downside.

30)Wall street finance:Because the owner is a close associate of mr anil ambani and they have got a tie-up with reliance money too.

31)Gujarat nre coke:Coz i am a huge fan of arun kumar jagatramka.It has got rich mines which would last for 100 years.Its a company which thinks of coming 10 years.Its a company which competes with the best..its unbeatable...and its a leader too

32)Rei agro:Basmati rice is a big business but people never realised the potential.Rei management did and look at it..one of my biggest wealth creator..Its k10 stores gonna do wonders.

33)Glory Polyfilms Ltd:-An operator freind of mine suggested long back to take it at 50 odd.I had no interest in the counter but on his continuos urging I took some and it really performed well.He requestd me to hold on for lot of upmove.

34)Onmobile global:I liked the business model a lot but again valuation is expensive.I thought quality doesnt come at a cheap price,so booked it.

35)Punj loyd:I love larsen and punj is a chota bhai of it.Copies larsen such a great way.Huge order book,immense revenue visibility added comfort.

36)Vishal information:Some top brokers play on these counter and they said to have it for double return which got acheived in no time.Its investment free for me.

37)Visa steel:Huge ambitious plans to fructify which would make it a great steel bet.

38)Innovasnth technlogy.Rakesh jhunjhunwala and raheja holding 42%...rakesh holding from last 5 years...enough for me to have it.

39)Godrej consumer:It pays me 3-4 times dividend a year.Its like I need come cash to have some fun,its not there..So what i do is I help myself then by encashing the cheque.Its a good solid fmcg counter too.

40)Acrysil:Its a very small player but numbers are going to be big for it.Signs were always there so just helped myself.Mind u it has got a equity of just 2crs.

41)Asian oilfield:Now oil exploration always looked lucrative from my aspects.Asian being the prefered choice for its management.

42)Bilcare:I dont understand pharma but I do understand that drugs need to be packaged.I searched for companies into pharma packaging and bilcare came to rescue me.

43)Bartronics:Security in shopping malls is certainly a stuff to give a lot of thought.Bartronics with its bar codes and all provides just that.So you see why i own it.

44)Raghav industry:Its the investment arm of ruias and these comany owns jessop and probably dunlop.Jessop maAsy come with its ipo when that happens expect raghav to unlock a lot of value.

45)Asian electronic:I just cant bear a company falling from 590 to 59.Trust me i have got no other reasnons but to have a falling knife which has got fat reserves and a great brand name.

46)Tulip tele:Superb management,great sunrising business model,industry leader and huge scope of increasing turnover at a blistering speed.What more is needed?

47)Jain irrigation:70% of the countrys population consist of farmers.Jain irrigation is such a compnay which is targetting these guys.Since there are no other listed listed player with the right focus it was easy for me to zero on it.

48)Hester pharma:Not a pure pharma company but it caters to poltries as a poultry vaccine player.Small player with immense potential.

49)Ntin fire:Company may triple its revenues over the coming 2-3 years.The sector itself is buzzing.The company also has a 10% stake in an oil exploration field which hasnt been counted in the stock price.

50)aarti industry:A complete turnaround story with the finest entreprenur on board.Expanding and operates a niche.Trading at less than 3 times 6 months forward.Last quarter result been mind-boggling.

51)Kalindee rail-nirmal:Railways are such a huge sector to cater.I mean just give it a thought-Indian rail posted 25000crs profit last year.And with the global theme the railways are doing every possible thing for an image makeover prime beneficary being kalindee rail nirman with an ever rising order book position.

52)Jenson&nicholson:A penny stock which possibly would be taken over at a higher price.The company has got a good brandname in the paint world and posses 2 factories in prime locations.I trade on it.

53)Dish tv:DTH is gonna boom for atleast next 15 years.Dish itself is a huge brand from the zee stable.These guys are adding 175000 odd clients in a month.How to ignore at 30 odd?It wud be easier for them to cut costs and make profits.

54)Adhunik metallicks:A solid company belonging to the agarwal group.Quoting at a great baragin.Expansion plans on stream,all going cool.A superb bet.

55)Zandu pharma:Holding it for last few months,emami has made up its mind to takeover the company.The open offer price would arrest any fall and further upmove can be seen once emami raise its price.An investment free bet for me.

56)Modern dairy:Huge potential,an industry leader,promoter taking at 75.An attractive bet wth great prospects.

57)Rama petro:The company is gonna start its productions after many years.Its a penny stock caters to the demand of many user-end industries.Bought it coz who knows maybe market wud realise its potential.

58)Jyoti:Huge order book position and management getting more commited to build a lot of wealth for the shareholfers.


To be continued.........

Regards,
ARUN

Saturday, September 27, 2008

In these sort of market condition one would need to opt for solid steady counters with limited downside and unlimited upside.I have marked some scrip which are strong candidates of protecting ur portfolio downside.Below are given my views on the following counters:-


1)Core projects--------------Always a buy for me
2)Bhagwati banquets-----------A good trading play,a scrip with multibagger potential
3)Nesco Ltd------------Buy it every month to make a pot of wealth afer 4-5 years.


4)Saag rr infra--------Order book of 700crs vs marketcap of 50crs.A solid buy at dips
5)Havells India---------Emerging leading on the sector.Keep buying
6)Bharti telecom-------Huge growth to continue.A safe large cap bet.


7)balaji industries---------Expected EPS for 2014 is 650rs...presnt price is 145rs.
8)Rajesh Exports.-------Positive on the counter with a long term view

9)Larsen toubro-------A huge asset for investors.Never sell it.

10)Sumedha fiscal---A hidden gem,keep accumulating.
11)Opto Circuits-------The scrip has given 2000%return over last 6-7 years wudnt be surprised if it gives the 1/4 of it in the same time.


12)Everest Kanto----------A scrip meant to be made for wealth creation.A superb company with a unique business model and solid pedigree.The company is aiming to become the largest manufacturer in the world in its segment over the coming 4-5 years.
13)Glenmark pharma.------------Very Positive on this counter

Tuesday, September 23, 2008

♪♪ $IR™ ®£NgÍ™♪♪:

MULTIBAGGERS STOCKS !!

These Stocks are Potential Multibaggers In 3-5 Years !

HCC

Adlabs Films

Hanunag Toys and Textiles

UTV Software

3i Infotech

Bartronics India

Axis Bank

Tanla Soloution

Prajay Engineers Syndicate Ltd.

Nitin Fire Protection

Noida toll Bridge

Godrej Const.

Finolex Industries



THANKS & REGARDS,
VIKASH !!

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♪♪ $IR™ ®£NgÍ™♪♪:


20 years later, you will be more disappointed for the things you din do, than being happy for all the things that you did. LIVE YOUR DREAM!


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CINDU :
========

Qualitative analysis of your type formula

You are:
slightly expressed introvert

slightly expressed intuitive personality

moderately expressed feeling personality

slightly expressed judging personality
CINEMAX
ZEE NEWS

SHRINGAR CINEMA
ADLABS

PVR
UTV


dish tv


ALL WIL GIVE 50-60 %+(Atleast) RETURN IN 2008.



=========================

OIL & GAS --> RIL (10%) / CAIRNS INDIA (5%)

MEDIA & ENTERTAINMENT --> ADLABS (5%) / UTV SOFT. (5%)

TELECOM ---> R.COM ( 5%) / BHARTI AIRTEL (5%)

POWER ---> NTPC (5%)


FMCG ---> NESTLE INDIA (5% ) / ASIAN PAINTS (5%)



PHARMA --> DIVI'S LAB (4%) / Dr. REDDY LAB. (4%)

INFRA/REALITY ---> HCC / DLF / UNITECH (5% EACH)


CAPITAL GOODS ---> L&T (5%)

IT ----> INFOSYS (5%) / BARTONICS (2.5%) / 3i INFOTECH (2.5%)

BANKING ----> AXIS BANK / SBI / REL. CAPITAL (4% EACH)


==== 100 %
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THIS IS A MIXTURE OF LARGE/MID/SMALL/MULTIBAGGERS / VALUE/GROWTH/BLEND STOCKS. WELL DIVERSIFIED PORTFOLIO !

BUY IN 3-4 PARTS...1st 25% @CMP.......THEN 3 MORE PARTS ON DIPS.

BUT DO HOLD ATLEAST 2 YEARS..........IN 3-5 YEARS ..WILL GIVE SUPERB RETURN !


HAPPY INVESTING !

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