Welcome to Sana Securities! Login | Subscribe Now

Sana Securities Blog

Open NavigationOpen Search
Portfolio Advisory, Research and Consulting
  • Home
  • Subscribe
    • Premium Subscription
    • Premium Login
  • Portfolio
    • Portfolio Advisory Service
    • Portfolio Advisory Login
  • Free Sign Up
  • Join Us
  • Contact
You are here: Home / Archives for options

options

What is Algorithmic Trading

November 27, 2014 by Rajat Sharma Leave a Comment

Before I begin – Remember that while algorithms can enable high frequency trading, the scope for algorithmic trading is much wider. While all high frequency trading will use some form of computer programming, all algorithms are not written to execute only high frequency trades. Algorithmic Trading Every buy/sell trade in the stock market is backed…

Read more

Short Synthetic Option Strategy

October 7, 2014 by Rajat Sharma Leave a Comment

When to use: Short Synthetic Option Strategy is used when the investor is bearish on the stock in the near future (i.e. the investor expects the stock to fall in the near future). How it works: In a short synthetic option strategy you sell 1 call option and buy 1 put option of the same underlying stock with the same…

Read more

Call Backspread Option Strategy

October 7, 2014 by Rajat Sharma Leave a Comment

When to use: Call Backspread Option Strategy is used when the investor is bullish on the stock (i.e. the investor expects the price of the stock  to rise in the near future). How it works: Call backspread option strategy uses three option contracts of the same underlying stock, with the same expiry date but two different strike prices.…

Read more

Put Backspread Option Strategy

October 7, 2014 by Rajat Sharma 2 Comments

When to use: Put Backspread Option Strategy is used when the investor is bearish on the stock (i.e. when the investor expects the stock price to fall in the near future). How it works: In the put backspread strategy the investor sells 1 in-the-money put option; and buys 2 out-of-the-money put options of the same underlying stock with the same…

Read more

Strip Option Strategy

September 26, 2014 by Rajat Sharma Leave a Comment

When to use: Strip Option Strategy is used when the investor is bearish on the stock and expects volatility in the near future. How it works: Strip option strategy use three option contracts of the same underlying stock, with the same expiry date and same strike prices. In this strategy, you buy 2 at-the-money put options and 1 at-the-money call option. For…

Read more

Short Call Ladder Option Strategy

September 26, 2014 by Rajat Sharma Leave a Comment

When to use: Short Call Ladder Strategy is used when the investor is moderately bullish on the stock and expects significant volatility. How it works: In the short call ladder strategy you sell 1 in-the-money call option; buy 1 at-the-money call option and buy 1 out-of-the-money call option of the same underlying stock with the same expiry date. You believe that the market will be…

Read more

Short Put Ladder Option Strategy

September 26, 2014 by Rajat Sharma Leave a Comment

When to use: Short Put Ladder Option Strategy is used when the investor is neutral to bullish on the stock and expects significant volatility. How it works: In the short put ladder strategy you sell 1 in-the-money put option; buy 1 at-the-money put option and buy 1 out-of-the-money put option of the same underlying stock with the same expiry date. You believe that the market will…

Read more

Strap Option Strategy

September 26, 2014 by Rajat Sharma 2 Comments

When to use: Strap option strategy is used when the investor is bullish on the stock and expects volatility in the near future. How it works: Strap option strategy uses three option contracts of the same underlying stock, with the same expiry date and same strike prices. In this strategy, you buy 2 at-the-money call options and 1 at-the-money put option, each…

Read more

Long Call Condor Option Strategy

September 1, 2014 by Rajat Sharma Leave a Comment

When to use: Long call condor option strategy is similar to a long call butterfly spread strategy. It is used when the investor believes that the stock is going to trade in a range and will be volatile in the near future. How it works: Long call condor option strategy uses four option contracts of the same underlying stock with the same…

Read more

Short Call Condor Option Strategy

September 1, 2014 by Rajat Sharma Leave a Comment

When to use: Short Call Condor Option Strategy is similar to a short call butterfly spread strategy. This Strategy is implemented when the investor believes that the stock is going to break out of a trading range in the near future but is not sure in which direction. How it works: Short call condor strategy uses four option contracts with…

Read more

Long Call Ladder Option Strategy

September 1, 2014 by Rajat Sharma 2 Comments

When to use: Long Call Ladder Option Strategy is used when the investor is moderately bullish on the stock and expects less volatility.  This strategy is an extension of the Bull Call Spread Strategy. In this case, the investor sells an additional call option. How it works: In a long call ladder option strategy you buy 1 in-the-money call option; sell 1 at-the-money call option and…

Read more

Long Put Ladder Option Strategy

September 1, 2014 by Rajat Sharma Leave a Comment

When to use: Long Put Ladder option strategy is used when the investor is moderately bearish on the stock and expects less volatility.  This strategy is an extension of Bear Put Spread Strategy as in that the investor sells another lower strike put. By shorting another put at a lower strike price, the position assumes uncapped risk potential…

Read more
Next Page »
Tweets by @SanaSecurities

How expensive are stocks, on a scale of 1 – 10?

PMS 

5 Large Cap Stocks Offering Multibagger Returns

hdfc bank return

Nifty 50 Companies – List & Sector-wise Weightage

 
 SEBI Registered Investment Advisor INA100004608

Copyright 2013 @ SanaSecurities.com T: +91-11-41517061 | +91-11-41517078 |Email