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Ratio Backspreads
Posted on 10 Mar 2010 by admin Filed Under General with No Comments
Ratio Backspreads is a Credit volatile options trading strategy that opens up one leg for unlimited profit through selling a smaller amount of in the money options against the purchase of at the money or out of the money options of the same type. As the same suggests, Ratio Backspreads are backspreads, which means that they are options trading strategies designed to profit no matter if a stock goes upwards or downwards strongly. Such volatile conditions might be expected ahead of important news releases, court r
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Debit Spreads
Posted on 10 Mar 2010 by admin Filed Under General with No Comments
A Debit Spread means two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction. Although there is an initial loss on the transaction, the investor is betting that there will be a significant change in the price of the underlying security, making the purchased op
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Credit Spreads
Posted on 10 Mar 2010 by admin Filed Under General with No Comments
There are two simple ways to define Credit Spreads. These are as follows : The spread between Treasury securities and non-Treasury securities that are identical in all respects except for quality rating. An options strategy where a high premium option is sold and a low premium option is bought on the same underlying security. For instance, the difference between yields on treasuries and those on single A-rated industrial bonds. A company must offer a higher return on their bonds because their credit is
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Free Stock Tips for 11th March 2010
Posted on 10 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 : Abhishek Industries Ltd. - Daily stock recommendation 11-03-2010 Source Action Tip Period Target Price (Rs.) Anil Singhvi Buy, stop loss Rs 14 - 15.50 Pantaloon Retail (India) Ltd. - Daily stock recommendation 11-03-2010 Source Action Tip Period Target Price (Rs.) Hemen Kapadia Sell, stop loss Rs 390 - 378.00 Allahabad Bank - Da
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Nifty Levels for 11th March 2010
Posted on 10 Mar 2010 by admin Filed Under General with No Comments
Please find the correct levels for nifty The Nifty Levels for 11th March 2010 are First Resistance = 5143 First Support =5099 Second Resistance =5164 Second Support =5076 Breakout above = 5187 Break down Below =5055 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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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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