A strategy in options trading whereby call options are written against a holding of the underlying security, is a covered call. The investor using a covered call gets to earn a premium writing calls while at the same time appreciate all benefits of underlying stock ownership, such as dividends and voting rights, unless he is assigned an exercise notice on the written call and … [Read more...]
Short Call Butterfly Explained
The short butterfly is very similar to the long butterfly but bullish on volatility. It is a limited profit, limited risk options trading strategy. There are 3 striking prices involved in a short butterfly spread. A short butterfly can be constructed using calls or puts. Using calls, the short butterfly can be constructed by writing one lower striking in-the-money call, buying … [Read more...]
Long Call Butterfly- How to Trade
An independent trade, that uses a combination of four calls, and is a bidirectional strategy is called a long call butterfly. This means, it will be profitable if the price does not move in either direction. The trader usually buys a single in the money call contract and a single out of the money call contract, and then sells two at the money call contracts. The lower striking … [Read more...]
Free Stock Tips for 24th February 2010
The Various – Daily Stock Recommendation Given by the various analysts and Stock Brokers are : Larsen & Toubro Ltd. - Daily stock recommendation 24-02-2010 Source Action Tip Period Target Price (Rs.) Gautam Vora Hold for upside - 0.00 Titagarh Wagons Ltd. - Daily stock recommendation 24-02-2010 Source Action Tip Period Target Price … [Read more...]
Nifty Levels for 24th February 2010
Please find the correct levels for nifty The Nifty Levels for 24th February 2010 are First Resistance = 4903 First Support =4844 Second Resistance =4925 Second Support =4807 Breakout above = 4962 Break down Below =4785 The above levels are for intraday only For Sure Shot pack and good Gains in Nifty Please visit Nifty Live Charts.com … [Read more...]