Option selling series 2. SAFEARN
AN INDEX OPTION TRADING COMPANY WE ARE NEITHER A BULL NOR A BEAR SHREE MAHALAXMAYE NAMHA OPTION EARNINGS (GROUP) SELLING OPTIONS (2) Dear friends In our previous mail we tell three ways of earning through Options. 1. Buying options. 2. Selling options. 3. Option strategy. *To trade all above three types of trade we use both CALL and PUT. *Simply selling and buying of options are called NACKED OPTIONS. *When we buy and sell call and put at the same time or mixed it with buying or selling its underlying stock or index it called STRATEGY. *Strategy most often use to hedge our risk in market and to save our investment in adverse conditions, as market goes against our expectations. *Along with strategy we can earn more then what we earn with bank investment and in a business. *All FIIs, MFIs and big investors use this to save their investment in market. *To hedge our risk in investment market called strategy. In this series we will only discuss about the NIFTY INDEX OPTION STRATEGY. We should ask a question before investing in any option. Why we are investing in options? There could be following reasons: a) Are we buying or selling options to hedge our investment? Or b) Are we investing for earning through options? If we are seeking to hedge our investment then we are right to buy or sell option, because it is known as insurance of investment, and we escape us and our investment from adverse conditions of market. And if we have another reason (b) then we should away from buying and selling of naked Calls and Puts. Stock market is the buyers market and option market is support to the sellers we can say it is sellers market. I will explain it in my next lesson. Enjoy Marry Christmas & New Year. Wish a happy New Year all We use only strategies for our customers. And they are earning safely in this uncertain market. THANKS Join our group http://in.groups.yahoo.com/group/safearn Visit http://optionearnings.blog.com Send feedback HAPPY TRADING 26/12/2009 SAFEARN TEAM [email protected] 09837043233
