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
BUSINESS
In The Money: Single-legged option strategies
Single-legged strategies, especially naked shorts, do not have any implicit risk-control mechanism. So, risk management by way of strict position-sizing and stop-losses is paramount
BUSINESS
The Fed’s stance poses risks for an overheated stock market
Narrowing interest rate differential between US and India markets raises the risk of foreign fund outflows, especially if future data points to more rate hikes. Investors should prepare for volatility
BUSINESS
In The Money: Regulations and guardrails in option trading
Knowing the regulations well and the guardrails that need to be in place while trading in options are essential for a successful journey in options trading
BUSINESS
Borrowing behaviour points to a deep-rooted grim demand outlook
Despite rising rates, retail and small businesses are borrowing more. But, large corporates are not making fresh borrowings despite enjoying lower rates. Where’s the disconnect?
BUSINESS
In The Money | Max Pain and Synthetic Long
Know all about a cue used to gauge the market’s pulse and also get introduced to an option arbitrage strategy that claims to offer riskless profit
BUSINESS
Will markets get a reality check in Q1 earnings season?
Flows from foreign funds and mutual funds to equities have increased. But negative surprises in earnings and any consequent cuts in consensus estimates could make valuations even less palatable
BUSINESS
In The Money | Track pulse of the market using Implied Volatility
Rising markets are usually accompanied by low implied volatility while falling markets tend to be synchronous with high implied volatility
BUSINESS
Equity investors, pay close attention to crude oil
Oil producing countries want prices to move up. But that’s a risk for India’s import bill and inflation and in turn, for richly-valued equities
BUSINESS
In The Money | How to track the market pulse using statistics
How returns are distributed can form the basis for traders to make critical decisions such as setting targets, strike to sell and stop-loss. A primer
BUSINESS
India’s basmati exporters in geopolitical hot soup
The abandoned US-Iran nuclear deal has left Indian rice exporters gasping for working capital, as their dues from Iran are mounting
BUSINESS
In The Money | Take the pulse of the market with put-call ratio
A few indicators can help inform our views on the direction and volatility of the market. Today, we cover the option chain and put-call ratio
BUSINESS
Should investors cash out as markets flirt with all-time highs?
The near-term trigger for the rally has been foreign buying due to China’s economy slipping on the growth front. While India’s attractiveness is also visible, some near-term risks have developed
BUSINESS
In The Money: Key rules of Greek interplay
At any point in time, an option trader must deal with everything changing all at once. The underlying could be trending while volatility is rising, and of course, time keeps passing. So, a successful option trader needs to be hawk-eyed about all of Greeks all of the time, as well as their interactions Ananya Roy
BUSINESS
In Focus: Indian fertiliser sector
Government support, utilization of new capacity to cater to the rising demand, and continued forays into production of the more efficient and sustainable nano urea are expected to keep the Indian fertilizer industry buoyant
BUSINESS
In The Money | Using Vega to navigate vagaries of the market
Higher the volatility higher is the option premium. Vega is the Greek which measures this relationship and it is the change in option premium for a unit percentage change in volatility
BUSINESS
Is the recent market rally in sync with the economy?
The breakout in the markets has come at a time when the Indian economy is standing out from the global rout
BUSINESS
In The Money – Theta: Time giveth and time taketh away
We have focused our attention on what’s called the “intrinsic value” of an option – the value of an option attributable to its moneyness. For the sake of simplicity, we have left “time to expiry” out of the equation so far. Now that we are through with intrinsic value, it is time to bring in time-value into our discussion
