The Ratio spread is an options strategy in which an investor simultaneously holds an unequal number of long and short positions. While investing, a commonly used ratio is two short options for every option purchased. It can also be said that the ratio-spread is a strategy in options trading that involves buying some number of options and selling a larger number of other options … [Read more...]
Diagonal Spread
A Diagonal spread is an options strategy established by simultaneously entering into a long and short position in two options of the same type i.e, two call options or two put options. It is also a strategy with different strike prices and expiration dates. The diagonal spread is similar to the calendar spread, where near term options are sold while long term options are … [Read more...]
Free Stock Tips for 2nd March 2010
The Various – Daily Stock Recommendation Given by the various analysts and Stock Brokers are : Fortis Healthcare Ltd. - Daily stock recommendation 02-03-2010 Source Action Tip Period Target Price (Rs.) Ashish Maheshwari Buy - 0.00 Jaiprakash Associates Ltd. - Daily stock recommendation 02-03-2010 Source Action Tip Period Target Price … [Read more...]
Neutral Calendar Spread (The concept)
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...]
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...]