Wednesday 5 February 2014

PUT CALL RATIO

The put-call ratio is a popular tool specifically designed to help individual investors gauge the overall sentiment of the market. The ratio is calculated by dividing the number of traded put options by the number of traded call options. As this ratio increases, it can be interpreted to mean that investors are putting their money into put options rather than call options. An increase in traded put options signals that investors are either starting to speculate that the market will move lower, or starting to hedge their portfolios in case of a sell-off. 
An increasing ratio is a clear indication that investors are starting to move toward instruments that gain when prices decline rather than when they rise. Since the number of call options is found in the denominator of the ratio, a reduction in the number of traded calls will result in an increase in the value of the ratio. This is significant because the market is indicating that it is starting to dampen its bullish outlook. ,.....

Saturday 1 February 2014

HOW TO CHOOSE A STOCK BROKER

A stock broker is a person who takes care of your investments and act as a mediator by selling and buying the shares/stocks you want. Whenever you want to buy or sell your stocks you have to put it in front of a stockbroker and hence, from there on the stockbroker takes care of the matter by following your order and placing them in the market.....

Tuesday 28 January 2014

ROCKING RCOM STRANGLE STRATEGY !!!!!!!!

Rcom strangle strategy rocks!!!!!!!!!!!!
RCom strategy update:
Book Profit in Rcom 130 Call Near 5.8
Now  book profit in Rcom 120 call Near 2.3 .
Total cost=3.2
Net profit = 9800

Thursday 23 January 2014

HOW TO BUY 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....

Monday 20 January 2014

BOOK PROFIT IN RCOM STRANGLE

Rcom strangle strategy rocks!!!!!!!!!!!!
RCom strategy update:
Book Profit in Rcom 130 Call Near 5.8-6 i.e. profit 5600 contd... to hold put
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Friday 17 January 2014

RCOM STRANGLE STRATEGY

Buy RCom 130 call @ 1.60
Buy RCom 120 put @ 1.60
COST =3.20 
RISK PER LOT = 6400
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=133.2
LOWER BREAK GIVEN POINT=116.8
Pay off table:

Wednesday 15 January 2014

Tuesday 7 January 2014

NIFTY STRANGLE STRATEGY

Buy Nifty 6100 put @55
Buy Nifty 6300 call @47
COST =102 
RISK PER LOT = 5100
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=6402
LOWER BREAK GIVEN POINT=5098
Pay off table:...

Thursday 2 January 2014

WHY ARE OPTIONS BETTER THAN FUTURES

First of all, both options and futures are derivatives and leverage instruments and are therefore inherently riskier than simply trading stocks itself. Also, both options trading and futures trading can be equally risky if your ability to produce fairly accurate analysis and outlook of their underlying asset is no good. 

Now, comparing options trading and futures trading, I would say that for beginners, Options Trading is less risky than Futures Trading for a number of reasons.
 

Firstly, bigger rewards comes with bigger risks. Futures trading is capable of producing return on investment and leverage far greater than can be attained in options trading
 

Secondly, when you buy
call and put option, your maximum risk is limited only to the amount of money you used when buying those options. The worst that can happen is that your prediction is totally wrong and the options simplyexpire  worthless. You don't lose more money than that. However, in futures trading, you are subjected to unlimited liability and will be expected to "top up" your daily losses by the end of each day in what is known as a margin call. This daily loss continues as long as the stock continues to go in the wrong direction..............

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.....