Tag stock market

Investment Strategy

San-Ku  – Three Gaps Up    As mentioned in Japanese candlestick analys is, the num ber three plays a very relevant part of the investment doctrine. Many of the  signals and formations consist of a group of three individual signals.…

Primary Functions

Again, although Bollinger Bands can help generate buy and sell signals, they are not designed to determine the future direction of a security. The bands were designed to augment other analysis techniques and indicators. By themselves, Bollinger Bands serve two…

Futures Stock Options Glossary

QUICK REFERENCE GLOSSARY ON FUTURES AND OPTIONS FUTURES TERMINOLOGY SPOT PRICE: The price at which an asset trades in the spot market. FUTURES PRICE: The price at which the futures contract trades in the futures market. CONTRACT CYCLE: The period over which a contract trades. The index…

Stock Market Trading

ADVANTAGES AND BENEFITS OF COVERED CALL STRATEGY ‘The biggest advantage of covered call strategy is it increases and improves the odds of successful trading. Another biggest share tips benefit is that it can be implemented in two of the three possible stock…

Traders And Investors

SOME STRATEGIES FOR WRITING COVERED CALLS STRATEGY 1       This is the strategy that works best in India since options of fundamentally strong stocks continue to have some time premium left till the last day. You should write at-the-money calls since…

Stock Trading

WRITING COVERED CALLS  Writing (Selling) Call Options when you already own the underlying is called writing covered call options. It is against writing Naked options which can have unlimited risk. HOW WRITING COVERED CALL OPTION WORKS As discussed earlier a…

Market Wide Position

CLIENT LEVEL POSITION LIMITS The gross open position for each client, across all the derivative contracts on an underlying, should not exceed 1 % of the free float market capitalization (in terms of number of shares) or 5% of the open interest in all derivative contracts in the same underlying stock (in terms…