Question: "Assume I purchased call options with a strike price of 105 rs when a stock was at 100 rs per share. If the stock goes to 106 rs can I sell the option at that time?"
Answer: Yes. You can sell the option any time prior to expiration. It does not matter if the stock is (or ever has been) above the strike price.
Question: "It the stock goes up to 106 then comes back down to 99 can I say it reached the strike price?"
Answer: Yes, it reached the strike price, but that makes no difference whatsoever. The price of the option depends upon several factors, one of which is the current price of the stock. Any previous price at which the stock traded is not a factor.
Question: "Should I have sold the option when the stock was at 106 rs?"
Answer: You would get more money by selling the option when the stock was at the higher price, but at the time the stock was at 106 rs you had no way of knowing if the stock would keep going up or if it would go down. Consequently, when the stock was at 106 rs you had no way of knowing that it would be better to sell it at that time.
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From your question I strongly encourage you to learn more about options trading before investing any real money in options.
Does anyone else keeping finding themselves on the wrong side of the market all the time?
Can anyone give me some constructive (not give up) and practical advise on this to help get my confidence back?
Thanks
made a good profit can go into the floor broker‘s or
desk trader‘s pocket. This is possible as he can leave
buyer/seller‘s name in blank and only fill it in when
reported or taken from the runner (the boy that picks up
the slips from the floor). In some markets this is not
possible since the whole deal (except the shouting) is
immediately recorded. But when trading is wild, a fast
light is put on, which allows 15 minutes to conclusion
instead of only five. I could give you many examples
but this is sufficient to convince you to change both
your trading house and/or floor broker or, better still
both. Find a floor broker that you know and trust, this
is the only solution. It is almost impossible to always
be the loser, so think twice and change your servers.
My take is that someone is deliberately swapping shares, huge chunks at a time, at ridiculously low prices to keep the stock price down? Why go to the expense?
The market is at a price consensus or is in a consolidation phase. The bulls and bears are in consensus; no one is more powerful than the other.
You will also find that penny stocks are usually less volatile than bigger value stocks.
>>My take is that someone is deliberately swapping shares, huge chunks at a time, at ridiculously low prices to keep the stock price down? Why go to the expense?
No I doubt anyone would be doing that deliberately. There is no point to such exercise – waste of time and money.
Maybe people who bought earlier at a cheaper price are taking profits and people who are hearing the news are buying in.
Good Luck!
I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.
http://www.bernanke.cn/stock-trade/
Best Wishes && Good Luck!
Pros First:
Work when you want
You are your own boss
Holidays off
If successful, you can make a ton of money
Work wherever you want as long as you have a pc and internet connection
Very low economic barriers to entry
Unlimited growth potential
Your ego will get a stroke when you tell people that you trade for a living
You'll learn more about your inner self than you would joining a convent
I'm sure there's more, but those are the big ones.
Now the Cons:
The educational learning curve is very steep.
You need to have at least $30,000 that you can afford to lose as well as 6-12 months of living expenses.
Inconsistent income with no benefits.
You will lose money for at least 6-12 months, period.
Everyone you know will think you're crazy, especially until you turn a profit which could realistically take years.
All of your personal flaws will be magnified, thrown in your face, and cost you money.
Its a very lonely job with little social interaction.
You may spend years of very hard work & study and still lose everything, can you handle that emotionally?
Just when you think you've got it, the markets will change and you're system will no longer work.
You are competing against the best professionals in the world, why would you have a chance?
There are a lot of really good pros to day trading but you need to be realistic in your expectations. Though you get to set your own hours, if you want to be successful, you must be willing to work at it just like any other job.
When things go well, don't get cocky, when things go bad, don't get down.
The odds are that you will fail, but don't let that discourage you from trying. Get as much education as you can and if possible, hook up with a profitable mentor to show you the ropes. And if you can't stand to loose everything and still be sane at the end, walk away now.
Hope this helps
you are not just investing here, but have a business operations to take care of. without proper tools, how can you expect to compete with all the professional traders worldwide? and on Daily Basis??
Example, if you bought 100 shares at $10, and the fee is $9.95, your adjusted cost basis is $1,009.95
If you then sold at $12, your proceeds from sale are $1,200 less trading fee of $9.95 = $1,190.05
So your trading profit is $180.10