Long Strangle Option Strategy
When to use: Long Strangle Option Strategy is used when the investors believe that the stock will experience very high volatility but uncertain about the direction of its movement. How it works: In the long strangle option strategy you buy an out-of-the-money call option and an out-of-the-money put option of the same stock with the same expiration date, T. For example: On 16th August […]
Long Call Option Strategy
The most basic and commonly implemented option strategy is the Long Call Option Strategy. When to use: When you are Bullish and anticipate the stock / index to rise. How it works: Suppose, you are bullish on Tata Motors stock on 16th August 2013, when the share trades at Rs. 319. You buy a call option at a premium […]
Short Call Option Strategy
When to use: When you are Bearish and anticipate the stock / index to fall. How it works: Suppose, you are bearish on ITC Limited stock on 16th August 2013, when the share trades at Rs. 324. You sell a call option (also called writing a call option) for a premium of Rs. 20, expiring 26th September 2013 with a […]
Long Put Option Strategy
A basic and commonly implemented option strategy is the Long Put Option Strategy When to use: When you are Bearish and anticipate the stock / index to rise. How it works: Suppose, you are bearish on ICICI Bank stock on 16th August 2013, when the stock trades at Rs. 830. You buy a put option at a premium of Rs. […]
Short Put Option Strategy
When to use: When you are Bullish and anticipate the stock / index to fall. How it works: Suppose, you are Bullish on ONGC stock on 16th August 2013, when the stock trades at Rs. 265. You sell a put option (also called writing a put option) for a premium of Rs. 5, expiring 29th August 2013 with a Strike […]
Jaypee Power Ventures Stock Analysis
Incorporated on Dec 21, 1994, Jaiprakash Power Ventures Limited (“Jaypee Power” or the “Company”) is part of India’s leading Infrastructure conglomerate – Jaypee Group. The Company is primarily engaged in the business of development, owning and operating power generation plants including hydro and thermal power plants. The Company currently operates the largest hydroelectric power plant […]
Circular Trading in Stock Market
Circular trading in stock market refers to a fraudulent trading scheme where buy/sell orders are entered by a person or by persons acting in collusion with each other to operate the price of the underlying security. The person(s) buying or selling knows that the same number of shares at the same time and for the same price will […]
Record Date vs Ex Dividend Date
A lot more confusion has surrounded this subject than what it deserves. I have witnessed all sorts of discussion forums on who will get the dividend, when will they get the dividend and at times, a discussion on why the investor did not receive the dividend on their shares. Let’s end all confusion around this. […]
Unity Infra Projects Limited Stock Analysis
Unity Infra projects Limited or UIL is engaged in construction and engineering activities primarily in India, Nepal and Bangladesh. The Company operates in three segments: Civil construction: construction of commercial and residential buildings, mass housing projects and townships, airports, InfoTech parks, hotels, hospitals, educational complex, stadiums, telecom towers and railway stations. Irrigation and water supply: dams, tunnels, […]
Future Outlook of stocks in the Indian Automobile Industry
Outlook and Key stats Indian automobile industry is a key contributor to India’s GDP. At US $ 80 billion, the automobile industry accounts for ~7% of India’s GDP *. While the Indian economy has grown at ~8% p.a. in the last 5 years (2009-2013), the Indian automobile industry has grown at ~15% during the same period […]