by Rajat Sharma | Jul 22, 2014 | stocks, trading |
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...
by Rajat Sharma | Jul 19, 2014 | equity, option strategy, stocks |
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...
by Rajat Sharma | Jul 19, 2014 | equity, option strategy, stocks |
When to use: When you are Bullish and anticipate the stock / index to rise. How it works: Long Combo Option Strategy uses two option contracts with the same expiry date but different strike prices. In this strategy, you sell/write 1 out-of-the-money put option; and...
by Rajat Sharma | Jul 19, 2014 | equity, option strategy, stocks |
Buy shares and sell a call option of an equal number of shares. The covered call option strategy is also called “Buy write” strategy. When to use the covered call option strategy: When you are neutral (or moderately bullish) on the short term direction of the...
by Rajat Sharma | Jul 19, 2014 | equity, option strategy, stocks |
In synthetic long call option strategy – buy the underlying shares and a put option (of an equal number of shares). When to use : When you are moderately bullish on the short term direction of the underlying stock and want to earn some fixed income from your...
