If one had gone for the Put Strategy,Morning 5800 feb put got for 24 and 5800 march put possible to sell at 75End of day 5800 feb put fetched 109 rupees which means 87 rupees profit.87+ 75 = 162 rupees profit so far. We are covered till 5638. 200 EMA at 5649 so a bounce on cardsMorning 5800 feb call at 60 bought and march 5800 call written at 125.During the day I hope some money could be salvaged in 5800 call and march 5800 call at 57 so made 68 rupees.If salvaged money Feb 5800 call at least 20-30 rupees profit.Risk free money ma...
Thursday, 28 February 2013
Wednesday, 27 February 2013
It is February 28th and time for the budget. This time the budget day is unique in a way that it matches with expiry day. Let us see if we can profit from this 1 off event.There are some strategies which come to mind and I am penning them dow here.Rule for trading in Option: Effective Risk Management. 1 should not loose large amounts of money in a single trade. Small losses are acceptable and part of the learning process.How will market react to the budget?There are 3 possibilities, go up, go down or remain flat.The volatility decreases tremendously...
Sunday, 24 February 2013
The markets drifted down further by 0.6 pc to close at the critical level of 5850. The Budget is upon us. The next week has the Railway Budget, the Economic Survey and the Union Budget. Along with this we also have the Expiry on Thursday after the budget. Let us try and examine how the things will pan out.1. The Budget going by Chidambaram track record should have something to excite the markets. This is because the Government needs a strong market to offload the PSU shares.The 1997 dream budget is a reminder how old wine can be packaged in a new...
Sunday, 17 February 2013
The market is slowly drifting down. Last week, it ended the week with a drop of another 0.3 pc. The market may be at around 5900 levels but the many of the stocks are at 5500 levels. Let us try and explore what can make the markets go up.1. One may argue that the markets have made a long-term top. What goes against this argument is there is o euphoria in the markets. Long term tops are usually characterized by news anchors beig excited on television and sharp falls in the markets.2. This is the last real budget the government presents before the...
Wednesday, 13 February 2013
Gilt funds have given a return of 14 % annualized in the last 6 months and 11 pc for the full year. Let us see if there is ay merit i investing in Gilt funds.I had written a guest post for Subhankar which can be accessed here:http://investmentsfordummieslikeme.blogspot.in/2013/02/a-re-look-at-gilt-funds-guest-post.h...
Saturday, 9 February 2013
The range predicted for February was 5850- 6200. We are about to test the lower end of the range. Will the markets make a new high? What will happen in the year 2013. Let us try and explore a few options.1. The liquidity in the markets is being drained out by the Government Offers for Sale. NTPC itself was worth about 10000 crores. The Domestic Insititutions have been selling to raise funds for these offers.2. The FIIs have bought around 5000 crores in the last few days of February. This to go with the FII buying of 19000 crores in January. The...
Saturday, 2 February 2013
It is again a new month and let us try and see how markets have traditionally performed. The last month analysis was pretty spot where the range of 5880-6080 thrown up by statistical analysis held up. This month is interesting because FIIs have pumped 20000 crores of equity, DIIs have sold big ad the markets have basically gone nowhere.1. In the previous 12 years, markets have gained in about 7 instances.The gains have been small except for the year...
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