When to use: Call Backspread Option Strategy is used when the investor is bullish on the stock (i.e. the investor expects the price of the stock to rise in the near future). How it works: Call backspread option strategy uses three option contracts of the same...
When to use: Short Synthetic Option Strategy is used when the investor is bearish on the stock in the near future (i.e. the investor expects the stock to fall in the near future). How it works: In a short synthetic option strategy you sell 1 call option and buy 1 put...
We all do it, or at least have done it at some point of time or the other. Average share price – Average your buying price by purchasing more shares at a price lower than your original purchase price. In an ideal world, you should of course be buying stocks where you...
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...
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...
Amongst the many styles of making money in the market, swing trading has delivered the best results over the last few months. This has been possible mainly because of volatility in stock prices. Swing trading is the practice of earning a profit by buying and selling a...
