Bear Call Spread Option Strategy
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 1 out-of-the-money call options and sells 1 in-the-money call options of the same underlying stock […]
Waterbase Limited Stock Analysis
Current Price (BSE) Rs 32.90 Market capitalization (28 July, 2014) Rs 127 Cr Face Value Rs 10 EPS (March 31, 2014) Rs 3.52 P/E 9.3 times Book value Per share (March 31, 2014) 22.45 Price to Book value 1.46 times No of Shares 38,603,250 BSE 52 week High Rs 33.35 (25 July, 2014) BSE 52 […]
Using Credit Card to Buy Shares?
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 your 45-50 day […]
Cairn India Stock Analysis
Also see, about share pledge of Cairn India – Comments section here. I think if India has to emerge as a stronger nation, it must find ways to reduce dependency of foreign oil and find ways to become meet its energy requirements. Cairn India’s stock price tanked over 11% in the two trading sessions (on – 24th & […]
Orbit Corporation Stock Analysis
Orbit Corporation Limited (“Orbit Corp” or the “Company”) is a real estate development company with significant operations in the Island City of Mumbai. The Company is a provider of premium realty solutions to High Net Worth individuals (HNIs) and eminent personalities from corporate houses. Orbit Corp businesses include: redevelopment projects in Mumbai and developing high-end […]
What Does Open Interest in Stock Market Indicate?
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 suffer losses. One of my favorite quotes – “It takes considerable knowledge just […]
Collar Option Strategy
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 is protected by purchasing a put option. How it works: In collar option […]
Long Combo Option Strategy
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 buy 1 out-of-the-money call option, each with the same expiry date, T. Suppose, you […]
Covered Call Option Strategy
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 underlying stock and you want to earn some fixed income […]
Synthetic Long Call Option Strategy
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 investment in the underlying stock. How it works: You buy IDBI […]