Posted: Fri Mar 02, 2012 8:58 am

Dear Friends,
Option writing
Margin Required : Almost equal to the margin required for buy/sell the futures c
ontract - Premium on writing(will be credited on next trading day only)
Risk Reward : Maximum Profit - Premium Received
Maximum Loss - Unlimited
If one person passively writing the option(not following technicals or News) the
succees ratio will be 80% of times small profit and 20% time Mega losses..It is
entirely opposite to options buying 80% time losses 20% mega profits
Theoritically options selling is more riskier than option buying but practically
buying is more riskier than selling since the time value will evaporate daily w
ill go in favour of option seller.
Follow the technicals along with the strategies in option writing will definitel
y give handsome profits
Regards
Raj
-------------------------------------------------------------------------------------------------------------------------------------------------------------Nifty Options: (Use this when there is Uncertainty)
Price per lot @ Rs.40 = 50x40 = 2000
Brokrage and SST = 113 X 2 (therefore a gain of Rs.4 gives no profit/loss)
To get profit of Rs.500 = gain of Rs.14 (Most Likely)
To get profit of Rs.1000 = gain of Rs.24 (Likely)
To get profit of Rs.1500 = gain of Rs.34 (Less Likely)
Nifty Futures: (Use this when market is in a certain trend)
Price per lot
Brokerage and
To get Profit
To get Profit
To get Profit
To get Profit

= 297500 - 30,000
STT = 350 (therefore
of Rs. 500 = gain of
of Rs.1000 = gain of
of Rs.1500 = gain of
of Rs.2000 = gain of

a gain of Rs.7 gives no profit/loss)

Rs. 17 (Most Likely)
Rs.27 (Likely)
Rs.37 (Likely)
Rs.47 (Less Likely)