When to use: Bull Put Spread strategy is used when the investor believes that the stock/index price will rise in future or at best it will trade in a tight range, i.e. the investor is bullish on the stock/index. How it works: In a Bull Put Spread strategy the investor...
When to use: Bear Call Spread Strategy is used when the investor believes that the stock price will fall in future or at best, it will remain range bound i.e. the investor is bearish on the stock. How it works: In a bear call spread option the investor buys...
The short answer to that is of course ‘No’. Someone posted this question to us and we thought it would make an interesting topic to write about. What if you could buy shares using your credit card, at least in the short term? You will actually be in a position to use...
Many people completely ignore open interest (- in futures & options market) data in stocks, believing it to be totally irrelevant for someone who trades in the cash segment. No wonder then, that most short term investors, even those who trade in the cash market...
When to use: Collar Option Strategy is used when the investor writes a covered call to earn a premium but wants to protect himself from an unexpected sharp fall in the price of the underlying securities. In this strategy, your risk from a downside in the stock price...