Gold options: It's a time for minting money. MCX launched Gold Option which is good for hedgers and arbitragers.
In today's scenario we will understand about the option. We can buy Call or Put also we can right (sell) Call/Put. If we buy option then we need to pay Premium but when we sell or right options then we need to pay Gold future margin to the exchange.
Buying side remain risky for time being. We will buy but for some times only. We will do if we know that there will be a huge turnaround.
Selling of Call option and Put option will be favourable. Let see with an example...
For Gold option trading...
You must have 3---4 lacs capital in your account.
We don't want to fool.... That with lesser amount you will earn handsome return.
That you can do trading with capital of 1 lac. Yes you can do but you will not be able to manage risk.
Your and our main motto should be to earn money rather than ignoring risk. Understand the way of risk you are taking.
Suppose Gold is trading around 29500 and CE of 29500 is 300. This means it's a premium of 300. Your profit starts only above 29800 mark
Or
If 29500 PE of Gold trade around 300. Then profit start only below 29200
On net... a big gap of 600 points. If gold unable to provide a big move and trade with in a range then you will get loss in option as price (Premium) decrease because of 'TIME VALUE OF MONEY'
So for this... Have sufficient fund. So that you can manage your fund efficiently.
We will focus on Hedging, Spread along with some buying and selling too in option segment.
Don't do speculation... the money is yours. Don't waste it. Next one month.... We will provide you recommendation for education purpose only.
So that you can understand the pattern and then subscribe. We will not suggest anyone to trade... Just keep watching. We are here to guide you and support you.
Your satisfaction is important for us. For any query... Feel free to ask.
