A Calendar spread is an options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. The neutral calendar spread strategy involves buying long term calls and simultaneously writing an equal number of near-month at-the-money or slightly out-of-the-money calls of the same underlying … [Read more...]
Archives for 25/02/2010
Synthetic Long Call
A Synthetic Long Call strategy is a very common strategy. It is a position where a long stock position is combined with a long put option. The purchase of a put option while still owning stocks is a strategy with a limited loss and (after subtracting the put premium) unlimited profit. A synthetic long call is created when long stock position is combined with a long put of … [Read more...]
Synthetic Long Put
A synthetic long put is created when short stock position is combined with a long call of the same series. The synthetic long put is so named because the established position has the same profit potential as long put. Futures and options traders can create a trading vehicle, through a combination of futures and options, that replicates another trading instrument. You may wonder … [Read more...]
Variance Swap [Explained]
A variance swap is a useful tool while investing. It is a financial derivative which allows one to speculate on or hedge risks associated with the magnitude of volatility, of some underlying product, like an exchange rate, interest rate, or stock index. One aspect of the swap will pay an amount based upon the realized variance of the price changes of the underlying product. … [Read more...]
Free Stock Tips for 26th February 2010
The Various – Daily Stock Recommendation Given by the various analysts and Stock Brokers are : JSW Steel Ltd. - Daily stock recommendation 26-02-2010 Source Action Tip Period Target Price (Rs.) Simi Bhaumik Buy, stop loss Rs 1060 - 1,100.00 Ranbaxy Laboratories Ltd. - Daily stock recommendation 26-02-2010 Source Action Tip Period Target … [Read more...]