Saturday, 28 December 2013

TRADING AND INVESTING

Trading typically refers to purchasing and marketing stocks or other monetary instruments for shorter periods of time, typically less than a few months. It is something that is done without much preparation or research i.e. It is said to be trading when someone purchases and sell stocks and mutual funds at will..
Investing traditionally refers to purchasing and marketing stocks or other monetary instruments for a long period of time, typically ranging over several years.....

Thursday, 19 December 2013

HOW TO CHOOSE STOCKS FOR DIVIDEND

Financing in shares that paying for dividends is solely the greatest financial decisions a stakeholder can step to make. These funds not only present a prospect to amplify net value from growing share prices, they also can assist harmonize an investor’s income for several years. So long as an investor is scrupulous about choosing these investment options, there is meagre supplementary menace over the long-standing. Stock Dividends can be outstanding as a source of steady income, while you still get to uphold the stock shares for further income. There is also sensitivity that companies, which can pay for dividends, are usually steadier....

Thursday, 12 December 2013

BOOK PROFIT IN TATA MOTORS OPTION STRATEGY


BOOK PROFIT IN TATAMOTORS 360 PUT  GIVEN @ 3.25 NEAR 10 AND  CONTINUE TO HOLD CALL TILL NEXT FOLLOW UP.

Wednesday, 11 December 2013

TATAMOTORS STRANGLE STRATEGY

BUY TATAMOTORS 360 PUT @ 3.25
BUY TATAMOTORS 410 CALL @ 2.90
COST =6.15   
RISK PER LOT = 6150
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=416.15
LOWER BREAK GIVEN POINT=353.85
Pay off table:....

Wednesday, 4 December 2013

BEAUTY OF COMBINATIONAL STRATEGIES

The reason I’ve sought to bring your attention to the various strategies is to show how each strategy is such a unique tool. Much like hydrogen and oxygen combine to form a unique substance (water), putting options together into various combinations results in some amazingly unique risk/reward profiles.


Buy an at-the-money call or a put and the chances are good that you will loose all your money (stops notwithstanding). However, buy a straddle (both a call and a put at the same strike price and expiration month) and the possibility of losing all your money is practically nil (the underlying would have to finish precisely on the strike price)......