BUSINESS
In The Money: Use the Calendar Spread, when volatility is expected to increase
Even if the underlying does make a large move, the maximum loss you can incur is the net premium outgo at deployment. In other words, losses are capped
BUSINESS
Are the merits of extended trading hours worth the disadvantages they will bring?
A level playing field with global exchanges and the ability to react to global events are some main benefits, but the naysayers have a strong case too
BUSINESS
In The Money | Iron Butterfly: An enhancement over the short Straddle
One of the most popular strategies for sideways markets is the Butterfly Spread and in this edition, we discuss the Iron Butterfly that helps cap losses
BUSINESS
Q2 earnings surprises could lead to sharp stock moves
A lowering of IT sector guidance, a good show from BFSI, auto and oil marketing companies are anticipated events in the earnings season. But be prepared for surprises
BUSINESS
In The Money | Cover your bases with the Iron Condor
Get more bang for your trading buck with the Iron Condor strategy, that helps cover naked shorts and improves your return on investment
BUSINESS
Vedanta Resources’ debt bind is weighing on India-listed Vedanta
Unless the parent Vedanta Resources makes concerted efforts towards sustainably bringing down its leverage, the fortunes of Vedanta would remain severely limited
BUSINESS
In The Money | Deploy Short Straddle and Strangle for sideways markets
Markets tend to move sideways most of the time, making strategies that require big moves fairly useless. But there are strategies that can be deployed to earn returns in these conditions too
BUSINESS
Eurozone takes a turn for the worse, what it means for Indian stock markets
Companies with significant exposure to European markets could suffer a hit, meaning it has implications for investors in India, too
BUSINESS
In The Money: Making profits with Straddle and Strangle
After learning about trading strategies that work when traders have a directional view, now it’s time for strategies that work even when there’s no directional view, starting with Straddles and Strangles
BUSINESS
A revised playbook for traders and investors -- both short and long term
The near term looks a bit clouded due to narrowing yield spreads, FII selling and relatively high valuations. Here’s how investors can deal with the inevitable short-term volatility
BUSINESS
In The Money | Profit from sharply bullish views, via the misleadingly named Bear Call Ladder strategy
This strategy can be used to play a bullish view, but it differs from the Call Ratio Back Spread strategy in one respect, you make more money if your call goes wrong. But, there’s a catch
BUSINESS
IPOs: Listing gains have seen a trend shift, what should investors do?
Whether you are trying to skim listing gains or a long term investor trying to enter at the ground floor of valuations, here’s what you should do in a frothy IPO market
BUSINESS
In The Money | Put Ratio Back Spread is the weapon of choice to profit from steep corrections
Put Ratio Back Spread is the bearish counterpart to Call Ratio Back Spread. Just like the Call Ratio Back Spread, it is a three-legged strategy but comprises of put options instead of call options
BUSINESS
The IT sector is on a roll, but what about valuations?
The Nifty IT index has outperformed the Nifty since June, when we highlighted the sector’s potential for generating returns. The question is if it can continue
BUSINESS
In The Money | Deploy the ‘Call Ratio Back Spread’ for the big moves
When the market makes a big move in your trade’s favour, this spread strategy helps you reap more gains and even if it moves against you will pocket some gains
BUSINESS
India’s F&O market is in a state of flux, how it will affect trading
Changes to lot sizes, expiry cycles all signal a seismic shift underway in derivatives trading that can affect trading outcomes. What should traders do?
BUSINESS
In The Money: Enhancing the Naked Short Call via the Bear Call Spread
This week brings the last of the Spread strategies, the Bear Call Spread which is an enhancement over the naked short Call
BUSINESS
Do measures to tackle food inflation count as intervention or interference?
Since the RBI can do little to control food inflation, the government is feeling the pressure to act. But, the risk it faces is in doing more harm than good in the longer run to India’s agricultural economy
BUSINESS
In The Money | Play the ‘Bearish with Limits’ view using a Bear Put Spread
After learning how to deploy nuanced strategies to play a bullish view, we will now apply these concepts to a bearish view. In today’s edition, we learn about the Bear Put Spread
BUSINESS
What does July’s inflation spike mean for India’s stock market?
India’s status as a bright spot in uncertain times has got a jolt by a hot inflation print last month, warranting a relook at the macroeconomic situation and what it means for stock markets
BUSINESS
In The Money | Enhancing the naked short put via the bull put spread
While the Bull Call Spread is an extension to the single-legged long call strategy, the Bull Put Spread is an enhancement over the single-legged short put strategy
BUSINESS
Q1 Earnings: Hits, misses and outlook for equities
Muted export demand, slow rural recovery, supportive urban markets and lack of any major surprises were visible this earnings season
BUSINESS
In The Money: Play the ‘Bullish with Limits’ view using Bull Call Spread
You can increase your ROI by going for a Bull Call Spread – buy a call option at a lower strike and sell another call option at a higher strike
BUSINESS
Is Fitch’s US downgrade a non-event?
The US market’s reaction to the Fitch sovereign rating downgrade was a faint shadow of 2011’s Black Monday. But it appears to have rattled the Indian stock market more. Here’s why
