• Bear Spreads

    Posted on 9 Mar 2010 by admin Filed Under General with No Comments      


    There are two ways to define Bear spreads, which are as follows : An option strategy seeking maximum profit when the price of the underlying security declines. The strategy involves the simultaneous purchase and sale of options; puts or calls can be used. A higher strike price is purchased and a lower strike price is sold. The options should have the same expiration date. 2. A trading strategy used by futures traders who intend to profit from the decline in commodity prices while limiting potentially damagi

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  • Bull Spreads

    Posted on 9 Mar 2010 by admin Filed Under General with No Comments      


    A Bull spread is an option strategy in which maximum profit is attained if the underlying security rises in price. Either calls or puts can be used. The lower strike price is purchased and the higher strike price is sold. The options have the same expiration date. You make a lot of money if the stock rises. You lose it all if it doesn't. It's one of those higher risk maneuvers that can cause a lot of anxiety. A bull spread option strategy is used by the option trader who is looking to profit from an expected

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  • Vanilla Option Style

    Posted on 9 Mar 2010 by admin Filed Under General with No Comments      


    The Vanilla option style is a category of options which includes only those with the most standard components. A plain vanilla option has an expiration date and straightforward strike price. American-style options and European-style options are both categorized as plain vanilla options. opposite of exotic option. The vanilla option is the most traded and most common option. The two terms call option and put option are used in this option style. Anything that is not exotic falls under the vanilla option. The t

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  • Free Stock Tips for 10th March 2010

    Posted on 9 Mar 2010 by admin Filed Under Daily Stock Tips with No Comments      


    The Various – Daily Stock Recommendation Given by the various analysts and Stock Brokers are : Dabur India Ltd. - Daily stock recommendation 10-03-2010 Source    Action    Tip Period    Target Price (Rs.) Rahul Mohinder    Buy    -      190.00 Heidelberg Cement India Ltd. - Daily stock recommendation 10-03-2010 Source    Action    Tip Period    Target Price (Rs.) Anil Singhvi    Buy, stop loss Rs 47    -      52.00 J K Lakshmi Cement Ltd. - Daily stock recommen

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  • Nifty Levels for 10th March 2010

    Posted on 9 Mar 2010 by admin Filed Under General with No Comments      


    Please find the correct levels for nifty The Nifty Levels for 10th March 2010 are First Resistance = 5115 First Support =5082 Second Resistance =5136 Second Support =5070 Breakout above = 5148 Break down Below =5049 The above levels are for intraday only For Sure Shot pack and good Gains in Nifty Please visit Nifty Live Charts.com

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  • Heath-Jarrow-Morton Framework

    Posted on 8 Mar 2010 by admin Filed Under General with No Comments      


    The Heath-Jarrow-Morton framework ("HJM") is a general framework to model the evolution of interest rate curve - instantaneous forward rate curve in particular (as opposed to simple forward rates) The key to these techniques is the recognition that the drifts of the no-arbitrage evolution of certain variables can be expressed as functions of their volatilities and the correlations among themselves. In other words, no drift estimation is needed. Models developed according to the HJM framework are different fro

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  • Heston model: The Overview Heston model: The Overview

    Posted on 8 Mar 2010 by admin Filed Under General with No Comments      


    The Heston model is a mathematical model describing the evolution of the volatility of an underlying asset . It is a stochastic volatility model: such a model assumes that the volatility of the asset is not constant, nor even deterministic, but follows a random process. n the Heston model, we still have one asset (volatility is not considered to be directly observable or tradeable in the market) but we now have two Wiener processes - the first in the Stochastic Differential Equation (SDE) for the asset and the sec

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  • Variance Gamma Model: Overview

    Posted on 8 Mar 2010 by admin Filed Under General with No Comments      


    The variance-gamma distribution is a continuous probability distribution that is defined as the normal variance-mean mixture where the mixing density is the gamma distribution. The most widely used option pricing model is the Black-Scholes model. We motivate an alternative option pricing model called the Variance Gamma (VG) model and demonstrate its implementation in the Bloomberg system. The tails of the distribution decrease more slowly than the normal distribution. It is therefore suitable to model phenomena wh

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  • Free Stock Tips for 9th March 2010

    Posted on 8 Mar 2010 by admin Filed Under Daily Stock Tips with No Comments      


    The Various – Daily Stock Recommendation Given by the various analysts and Stock Brokers are : NMDC Ltd. - Daily stock recommendation 09-03-2010 Source    Action    Tip Period    Target Price (Rs.) Anil Singhvi    Sell, stop loss Rs 422    -      400.00 Shree Renuka Sugars Ltd. - Daily stock recommendation 09-03-2010 Source    Action    Tip Period    Target Price (Rs.) Hemen Kapadia    Hold    -      191.00 Kotak Mahindra Bank Ltd. - Daily stock recommendation

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  • Nifty Levels for 9th March 2010

    Posted on 8 Mar 2010 by admin Filed Under General with No Comments      


    Please find the correct levels for nifty The Nifty Levels for 9th March 2010 are First Resistance = 5140 First Support =5100 Second Resistance =5163 Second Support =5083 Breakout above = 5180 Break down Below =5060 The above levels are for intraday only For Sure Shot pack and good Gains in Nifty Please visit Nifty Live Charts.com

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  • Exotic Option Style

    Posted on 5 Mar 2010 by admin Filed Under General with No Comments      


    Exotic options are like regular options except that they have unique features that make them complex. These unique features adapt themselves to situations that might otherwise require some rather crafty financial engineering. Situations requiring an all-or-nothing style hedge, situations where an investor faces exchange rate and price risk, as well as many others situations, can be solved with these tidy packages. Benefits vs. Drawbacks When it comes to pricing options, traditional options can be priced using

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