Investment Technology
As always, there are exceptions to all rules. The Gapping Plays are those exceptions. As previously discussed, the gap at the top of a trend is the exhaustion gap. The same is said for the gap at the bottom of…
Tag Traders
Selling Gaps
Now turn the tables over. The same enthusiasm demonstrated by a gap to the upside is just as pertinent for sellers on the downside. A gap down illustrates the desire for investors to get out of a stock very quickly. …
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…
Future Option Trading System
PLACING ORDERS ON THE TRADING SYSTEM For both the futures and the options market, while entering orders on the trading system, members are required to identify orders as being proprietary or client orders. Proprietary orders should be identified as ‘pro’…
Future & Options Market
THE TRADER WORKSTATION MARKET WATCH WINDOW: The following windows are displayed on the Trader Workstation Screen. TITLE BAR TICKER WINDOW OF FUTURES & OPTIONS MARKET TICKER WINDOW OF UNDERLYING (CAPITAL) MARKET TOOL BAR MARKET WATCH WINDOW INQUIRY WINDOW SNAP QUOTE ORDER/TRADE…
Bullish Security
SPECULATION. BULLISH SECURITY. BUY FUTURES Take the case of a speculator who has a view on the direction of the market. He would like to trade based on this view. He believes that a particular security that trades at Rs.…
Single Stock Futures
APPLICATIONS OF FUTURES AND OPTIONS The phenomenal growth of financial derivatives across the world is attributed the fulfilment of needs of hedgers, speculators and arbitraguers by these products. In this chapter we first look at how trading futures differs from trading the…
Introduction To Derivatives
The emergence of the Market for Derivative products, most notably forwards, futures and options can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very…