Stock Option Trading Guide

Stock Option Trading is the strategy to earn high return from stock market. You can get rich quick using On Line Stock Trading.

Best Stock Trading is to earn thousands of dollars with out taking any risk. You need to find out price difference of stock in cash and future markets for index or individual stocks and trade stock based on this price difference.

Unique On Line Stock Trading Strategy

You can also use On Line Stock Trading software to find the price difference in spot and future price. Trade Stock using the spot and future price difference can bring more than 50% per annum.

Trade Stock Like Professionals

Lets see analyze a similar example of Stock Option Trading.
1st Feb’06 price of Reliance was Rest. 769.30 in cash market and month end future price was Rs. 776.30. Settlement date for derivative market was 23rd Feb’06.

If you have purchased 100 shares of stock in cash market and sell the same in future market. Total investment was Rs. 76930 for this Stock Trading.

On settlement date, you need to reverses the transaction. The share price was equal in cash and future market on settlement date. The price was on settlement date was Rs. 869.30.
Profit by selling the shares would have been 100*(869.30-769.3) i.e. Rs. 10000. Loss from future market would have been Rs. 100 *(869.3-769.3) i.e. Rs. 9300.

Positive cash flow from the total deal would have been Rs. 700 against a total investment Rs. 76930. Annualized return by this On Line Stock Trading is 15% without taking any risk.

Let’s assume there was a fall in market on 23rd February’06. Value of share in cash market was Rs. 700. Possible loss in cash market would have been Rs. 6930. Possible gain by buying back the futures would have been Rs.7630. Even if bear gripped the market, profit would have been Rs. 700 i.e. annualized return 15%. This is one of the Best Stock Option Trading.

Best Stock Trading

As a stock trader, you can also reverse the Stock Trade Option if you have a favorable market situation. Stock Trader can also take a reverse arbitrage if future price was selling in a discounted price than spot price.
Intelligent Investor can multiply their wealth using Risk Free Stock Option Trading.

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