Showing posts with label NIFTY PUT CALL TIPS. Show all posts
Showing posts with label NIFTY PUT CALL TIPS. Show all posts

Friday, June 20, 2014

CREATIVE WAYS TO PROTECT PORFOLIO

After posting gains in a portfolio, the last thing you want to do is give them back. Protecting your stock portfolio is an extremely important part of portfolio management. There are several ways to approach this  some of the most common include buying put options and buying inverse exchange traded fund (ETF). It is necessary to understand how each works and how well each achieves the goals of protecting portfolio gains. 

Types of Protection and Making the Right Choice

The consideration to buy protection is typically due to a fear that something negative will happen in the short term which will impact your portfolio.
Stock Specific Fears:

If you have stock specific fears, then purchasing put options to hedge against a stock’s decline is an appropriate action. Buying a put option gives you the right but not the obligation to sell 100 shares of the underlying equity at the set strike price. Therefore if you are concerned about short term volatility you could purchase puts in the amount equal to the quantity of underlying security with a strike price equal to the minimum price you are willing to continue holding the stock and for the time frame you are concerned the volatility will occur....

Monday, March 18, 2013

NIFTY OUTLOOK FOR TOMORROW


Nifty noticed a lack luster movement today. Nifty was down 36.20 points to 5,836.40. The index hit a low of 5,814 in intraday trade. The index hit a high of 5,842 in intraday trade. The index is at a crucial intersection between the bulls and the bears. Bulls have a ready job at hand they must be able to defend the zone between 5860 and 5780 throughout the week failing which they risk allowing the market to slip into the bears’ grip at least for some time. .....