FII Created Massive SHORT Positions in Derivatives

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When it comes to option trading, the most important lesson to retain is an understanding of what’s actually being traded. The real commodity in any option trading strategy isn’t the underlying stock itself, and it has little to do directly with phrases such as implied volatility, net debit, net credit, strike price, or expiration date. Fundamentally, what’s really being traded when an option transaction is enacted are degrees of risk.

Buying stocks online is relatively easy and is probably much easier than you might think. More people are trading stocks than ever before and the internet has made online trading incredibly easy. There are numerous online discount brokers that can help you with making trades and with the growing number of brokers you’ll be able to find the right one for you.

Recently, oil prices had skyrocketed. Most of this price increase was due to speculation by hedge funds and wealthy investors who were betting on oil price reaching $200 per barrel. It did go above $145 but then the market collapsed. The collapse was mainly due to the financial crises in the stock markets. Most of these hedge funds had to liquidate their positions in the oil markets in order to cover the losses they had suffered in the stock markets.

“What is the overall stock market trend?” Have you heard people asking you about this? Do you know how to answer this question? If you are a serious traders or investors who like to make money in the stock market. Van K. Tharp, author of Trade Your Way to Financial Freedom, said that “Every trader needs a trend to make money”. So, you must really know how to read and study the stock market trends. This article discuss the basic concept about stock market trends.

While an individual is planning to invest in a company and purchase its stocks, it becomes very important to know and find out the answer to the following 6 questions. These questions can help you gain a sound and better understanding of the prevailing situation of business and market. 1) What is the source of cash flow?

During these difficult times in economy many folks are asking themselves “how could I make money on the stock market?”. It is possible to cash in with stock trading even during recession but of course there are risks involved, especially if you don’t know what you are doing.

Covered call writing can be a great source of income and cash flow. Although covered call writing is considered to be one of the more conservative uses of options, it’s certainly not without risk. Ultimately, your ability to successfully generate consistent levels of income from the strategy depends on the quality of your selection process. Here are three tips to help you improve that selection process.

A beginner stock trader often wonders why share prices keep on changing in rapid succession. How to get at the correct valuation of a particular share? Why this arithmetic is so difficult? For a carefree investor, these issues do not matter much.

Employee stock option, from the point of view of the management and the employees, is like the double edged sword. It hurts if the moves are wrong, but it proves to be the double benefit scheme, when things go well. When you sign a job agreement with a company, if stock option is part of the deal, you are encouraged to give your best output to the company.

A “closed-end fund,” legally, is an investment company. Some of its distinguishing characteristics are: They sell a specified number of shares at one time, at the time of initial public offering, and they do not do sale of shares on recurring basis.