F&O - Risky? or actually more SAFE ?

arnav_rulz · Rich +++ Posts: 58 Join date: 2008-01-28

Just saw this space, thus copying the same thing i wrote in the other thread

The key to investing in F&O is having a strategy and not investing on borrowed funds.

F&O is a great way to earn more.But if your Short term here... A very strict stop loss may be required.

Also there are soo many strategy's you can use in F&O that may give you outstanding retuns with limited risk.

If you have less cash in hand you can always trade in Options, but you must have complete knowlege about F&O in order to gain handsomely.

Even in falling market you may earn a lot !!

There are soo many strategy's in F&O. Here are a few -

1) If you are bullish/long on a stock, Buy a future and sell an out of the money(higher spot price) call.

2) But 1 AT the money(current price) Call & see 1 Out of the money call

3) Best in volatile markets - Buy 1 call And buy 1 put.

4) if Put's arnt active, then buy 2 calls and sell 1 future !(its equal to buying 1 call and 1 put !)

5) People who have less cash, but are very bullish on a stock in the short run may just buy a call(limited money, limilted loss & unlimited profits !!)

6) If your expecting a fall, just buy a Put !

If your not very greedy & I you know the tricks, you can make F&O even safer than Cash stocks using various strategy's !