The premium falls sharply on the expiry day. Can we use it to our advantage.
We can use the Short straddle strategy. In this we have to sell both call and put option of a same strike price.
Let's take today's case.
At 1:30 PM premium for banknifty 9 June 2016
Bank nifty was at 17910
17800 CE = 90.
17800 PE = 18.30
You sold both of them and got a premium of 108.30.
At end of the day premium was
Bank nifty was at 17887.
17800 CE = 69.90
17800...
Thursday, June 9, 2016
Wednesday, May 18, 2016
Why people are not able to make money by investing?
The answer is impatience.
If you buy 10 stocks, 5 of them are gonna rise and 5 of them are gonna lose(just taking a 50% scenario). People will book profit as soon as those 5 stocks rise by 10% and they will keep hold on to their losers.
But, if someone just keep holding on to both losers and gainers, they will surely make money.
Business today mentioned 13 stocks in may...
Tuesday, May 17, 2016
Bias in stock markets
Bias 1: OverconfidenceMany novice investors get lucky: The first few stocks they pick do extremely well. Unfortunately, they start believing in themselves. They think they have a magic touch; or worse, they think they are smarter than everyone else. This often leads to disaster….Therefore, the wise investor not only knows how to recognize signs of overconfidence in himself (such as bragging about one’s short-term investment performance), he also...
Saturday, May 14, 2016
My Journey into markets
I started my journey 5 years back in stock market and I had my ups and downs. Like, most people I was also trying to find the holy grail but the truth is there is no holy grail.
First year
I came to know about the biggest and successful investor of market "Warren Buffet". He uses a fundamental approach for investing. Started using his philosophy of value investing using...
Tuesday, May 10, 2016
Intraday calls for 11 May 2016
Buy CallsNSE:DISHMAN SL - 155 Target 162
NSE:UFLEX SL - 185 Target 190...
Thursday, May 5, 2016
Swing Trade in ICICI Bank
A bullish harami pattern has been formed in the icic bank on daily time frame.
A bullish harami is formed when the previous bar is a big red bar and the current bar is a green bar and it looks like red bar is carrying a green bar as a child.
Target can be set as 240 as it has been a good resistance twice in the past.
...
Monday, May 2, 2016
Websites for fundamental analysis of stocks
Personally, I like the one below. There are some others too.
http://www.screener.in/
1.Balance sheet Comparison
http://economictimes.indiatimes.com/...nyid-13554.cms
The economic times used to gives data backing to 1990s.But now they seem to limit it to 5 years. But neat compilation and mostly accurate data.
2. Stock Screener
http://www.edelweiss.in/Tools/screener.aspx
Edelweiss.You can screen stocks based on PE, Dividend...
