Thursday, June 17, 2010

Options...risk covered by holding futures

lakshmanan c (6/17/2010 3:24:23 PM): have u got this msg ??? short nifty 5285
lakshmanan c (6/17/2010 7:34:55 PM): good evening,sir
dhanvarshagroup@ymail.com (6/17/2010 7:35:11 PM): yes ge
lakshmanan c (6/17/2010 7:36:51 PM): due to heavy rain and lightning i face power failure as well net problem2 day which i have reported to u ,sir
dhanvarshagroup@ymail.com (6/17/2010 7:36:38 PM): ok
dhanvarshagroup@ymail.com (6/17/2010 7:37:00 PM): this is part and parcel of game
lakshmanan c (6/17/2010 7:37:47 PM): many a messages were not received and i could not trade also,
dhanvarshagroup@ymail.com (6/17/2010 7:37:28 PM): ok
lakshmanan c (6/17/2010 7:38:11 PM): i have mailed the transactions of 2day,sir
dhanvarshagroup@ymail.com (6/17/2010 7:38:02 PM): ya i will chk
dhanvarshagroup@ymail.com (6/17/2010 7:38:39 PM): let me know how many futures lot of dlf u can buy ?
lakshmanan c (6/17/2010 7:39:29 PM): i lot ,sir
dhanvarshagroup@ymail.com (6/17/2010 7:39:15 PM): ya tell me
lakshmanan c (6/17/2010 7:40:53 PM): do u see upward for dlf 2morow
dhanvarshagroup@ymail.com (6/17/2010 7:40:46 PM): i have a  plan
dhanvarshagroup@ymail.com (6/17/2010 7:41:12 PM): we will dicuss with u
lakshmanan c (6/17/2010 7:41:52 PM): o,k,sir
dhanvarshagroup@ymail.com (6/17/2010 7:41:37 PM): just tell me ur capacity
lakshmanan c (6/17/2010 7:44:55 PM): i have shares worth 8 lakhs i have to sell the shares and make money for trading ,if u say i will sell it 2morrow and make available the money for any purchase
dhanvarshagroup@ymail.com (6/17/2010 7:45:03 PM): so in shares u are at gains or loss
dhanvarshagroup@ymail.com (6/17/2010 7:45:18 PM): or can u trade against shares
lakshmanan c (6/17/2010 7:45:47 PM): not in gains
dhanvarshagroup@ymail.com (6/17/2010 7:46:57 PM): not in gains means
lakshmanan c (6/17/2010 7:47:54 PM): they will give the limits but margins i have to pay daily otherwise they will sell,i think better offload shares for 2 laks and keep ready for margins
dhanvarshagroup@ymail.com (6/17/2010 7:48:30 PM): now please answer me
lakshmanan c (6/17/2010 7:49:10 PM): i have not pledged the share so they cannot sell my shares
dhanvarshagroup@ymail.com (6/17/2010 7:48:47 PM): when dlf was at285
dhanvarshagroup@ymail.com (6/17/2010 7:49:01 PM): its call was at 19
lakshmanan c (6/17/2010 7:49:46 PM): yes i have seen it
dhanvarshagroup@ymail.com (6/17/2010 7:49:41 PM): means it is carrying 14 rs premium
lakshmanan c (6/17/2010 7:50:30 PM): o,k,sir
dhanvarshagroup@ymail.com (6/17/2010 7:50:23 PM): on july expiry it will be zero
lakshmanan c (6/17/2010 7:51:20 PM): o,k
dhanvarshagroup@ymail.com (6/17/2010 7:51:29 PM): so u can keep dlf with u and sell the call
lakshmanan c (6/17/2010 7:52:25 PM): ok,sir
dhanvarshagroup@ymail.com (6/17/2010 7:52:28 PM): and in next 40 day's u will make 14 k/ lot as premium
lakshmanan c (6/17/2010 7:53:33 PM): ok
dhanvarshagroup@ymail.com (6/17/2010 7:53:34 PM): and if dlf will fall to any where below 280 all the money will be urs
lakshmanan c (6/17/2010 7:54:45 PM): o,k,sir
dhanvarshagroup@ymail.com (6/17/2010 7:55:29 PM): coz on 29 july if dlf will be at 290 then call will be 10 rs
lakshmanan c (6/17/2010 7:56:28 PM): oho
dhanvarshagroup@ymail.com (6/17/2010 7:56:21 PM): don't u know this
lakshmanan c (6/17/2010 7:57:34 PM): not fully, coz iam a new in fno trading
dhanvarshagroup@ymail.com (6/17/2010 7:57:25 PM): thats why u made a mistake
lakshmanan c (6/17/2010 7:58:03 PM): yes,sir
dhanvarshagroup@ymail.com (6/17/2010 7:57:48 PM): sold dlf and keeping short call
dhanvarshagroup@ymail.com (6/17/2010 7:58:14 PM): do u know the meaning of short call
lakshmanan c (6/17/2010 7:59:15 PM): sell ca
dhanvarshagroup@ymail.com (6/17/2010 7:59:04 PM): ya what is the action
dhanvarshagroup@ymail.com (6/17/2010 7:59:19 PM): of ca280 u sold
lakshmanan c (6/17/2010 8:00:30 PM): those who sell the option will get the premiun and buye risk bound to pay the premium,is it
dhanvarshagroup@ymail.com (6/17/2010 8:00:29 PM): its meaning is u will bound to sell dlf at 280 rs
dhanvarshagroup@ymail.com (6/17/2010 8:01:06 PM): when on expiry
dhanvarshagroup@ymail.com (6/17/2010 8:01:23 PM): if u are in short ca280
lakshmanan c (6/17/2010 8:02:03 PM): if dlf cross 280 the buyer can exercise the option if he wills
dhanvarshagroup@ymail.com (6/17/2010 8:01:43 PM): and u are not having dlf
lakshmanan c (6/17/2010 8:02:46 PM): the loss i have to bear
dhanvarshagroup@ymail.com (6/17/2010 8:02:22 PM): ya
dhanvarshagroup@ymail.com (6/17/2010 8:02:51 PM): no buyer can exercise any time
lakshmanan c (6/17/2010 8:03:38 PM): if u sell ca of dlf u have to dlf fut with u to cover the loss
dhanvarshagroup@ymail.com (6/17/2010 8:03:15 PM): but he will exercise if he will be at gains
dhanvarshagroup@ymail.com (6/17/2010 8:03:22 PM): else fgt it
dhanvarshagroup@ymail.com (6/17/2010 8:03:35 PM): ya
dhanvarshagroup@ymail.com (6/17/2010 8:03:44 PM): coz
lakshmanan c (6/17/2010 8:04:15 PM): yes
dhanvarshagroup@ymail.com (6/17/2010 8:04:12 PM): future price having no decay in premium
dhanvarshagroup@ymail.com (6/17/2010 8:04:33 PM): but option will decay in last month
lakshmanan c (6/17/2010 8:05:18 PM): it will converge
lakshmanan c (6/17/2010 8:06:37 PM): itis it comes to 0
dhanvarshagroup@ymail.com (6/17/2010 8:06:39 PM): not zero min price will be 5 paisa
dhanvarshagroup@ymail.com (6/17/2010 8:07:28 PM): but below 40 paisa no one have courage
dhanvarshagroup@ymail.com (6/17/2010 8:07:38 PM): reason brokerage
lakshmanan c (6/17/2010 8:08:17 PM): o,k,sir
dhanvarshagroup@ymail.com (6/17/2010 8:08:23 PM): so if price remain 280
dhanvarshagroup@ymail.com (6/17/2010 8:08:40 PM): on 29 may or even 281
lakshmanan c (6/17/2010 8:09:12 PM): if in the mean tome the buyer exercise his option what will be my roll
dhanvarshagroup@ymail.com (6/17/2010 8:08:58 PM): whole premium will be urs
dhanvarshagroup@ymail.com (6/17/2010 8:09:23 PM): in middle
dhanvarshagroup@ymail.com (6/17/2010 8:09:37 PM): no one can exercise
lakshmanan c (6/17/2010 8:10:30 PM): i e in july
dhanvarshagroup@ymail.com (6/17/2010 8:10:06 PM): cos we dont know who is wrter
lakshmanan c (6/17/2010 8:10:42 PM): ya
dhanvarshagroup@ymail.com (6/17/2010 8:10:26 PM): only on 29 july
dhanvarshagroup@ymail.com (6/17/2010 8:10:36 PM): u may caught in
lakshmanan c (6/17/2010 8:11:12 PM): o.k
dhanvarshagroup@ymail.com (6/17/2010 8:11:00 PM): at that time
dhanvarshagroup@ymail.com (6/17/2010 8:11:10 PM): if u are in call
dhanvarshagroup@ymail.com (6/17/2010 8:11:28 PM): then give ur dlf @ 280
dhanvarshagroup@ymail.com (6/17/2010 8:12:17 PM): ur dlf will disappear and u will get paid @ 28o
dhanvarshagroup@ymail.com (6/17/2010 8:12:37 PM): hope it is clear to u
lakshmanan c (6/17/2010 8:13:14 PM): oho
lakshmanan c (6/17/2010 8:13:22 PM): yes
dhanvarshagroup@ymail.com (6/17/2010 8:13:06 PM): now tell me
dhanvarshagroup@ymail.com (6/17/2010 8:13:15 PM): how is the plan
lakshmanan c (6/17/2010 8:13:52 PM): very good
dhanvarshagroup@ymail.com (6/17/2010 8:13:39 PM): means no tension
dhanvarshagroup@ymail.com (6/17/2010 8:13:47 PM): just buy dlf
lakshmanan c (6/17/2010 8:14:17 PM): yes
dhanvarshagroup@ymail.com (6/17/2010 8:13:54 PM): sell call
lakshmanan c (6/17/2010 8:14:33 PM): o.k
dhanvarshagroup@ymail.com (6/17/2010 8:14:22 PM): and be ready to pay margin money
lakshmanan c (6/17/2010 8:15:01 PM): o.k sir
dhanvarshagroup@ymail.com (6/17/2010 8:15:07 PM): and keep 14 k in pocket in worst scene
lakshmanan c (6/17/2010 8:15:50 PM): that is nice
dhanvarshagroup@ymail.com (6/17/2010 8:15:25 PM): in 40 days on 1 lot of dlf
lakshmanan c (6/17/2010 8:16:02 PM): ya
dhanvarshagroup@ymail.com (6/17/2010 8:15:57 PM): so gn now
lakshmanan c (6/17/2010 8:16:34 PM): gn,sir
dhanvarshagroup@ymail.com (6/17/2010 8:16:24 PM): gud news
dhanvarshagroup@ymail.com (6/17/2010 8:16:45 PM): my last short nifty at gain of 40 points
lakshmanan c (6/17/2010 8:18:23 PM): o,k sir
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