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The BSE/NSE Trading Thread


G_B_

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3 hours ago, randomGuy said:

pls answer this as well -

"Is writing out of money option a semi-decent strategy to earn small sums of money close to expiry? For ex. in following nifty option chain for sept., Writing 8500 put as much close to expiry ( 1 or 2 days) as possible and earn whatever little (10-12 rupee) premium is there till premium goes to zero at  expiry -

 

https://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp "

 

 

 

 

i see this as unnecessary risk and risk to reward is not that great..

on normal expiry ( like no big events are there ) , 3% OTM call or put might trade for 4 or 5 rs .. approximately we might get 600 to 800rs per 1L locked margin..

once in a while there might be a bigger swing which will give us huge losses

 

i prefer to sell options on stocks , but i dont sell nifty or bank nifty options ( from my exp index option are comparatively cheaper, so  its better to buy ATM options on index )

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On 20/09/2016 at 8:01 PM, velu said:

in theory, risk is more..

But if we have more than 10L to play with , writing is safer than futures too

I don't write at the money options and usually i hold it for max 2 or 3 days ( if i do based on events like results )..

If we write properly when volatility is expected to drop , we make money even if we predict the direction of the mkt wrong ..

Like after results , bhel moved from 135 to 160.. Next day bhel corrected a bit and closed arnd 155 .. Cost of 140 put was less than theb previous day..

Nice .

I agree with money in hand , writing is definitely a better strategy , you need to be little more careful not to over expose yourself .

 

 

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7 minutes ago, G_B_ said:

surprise rate cut of 25bp

 

I am starting to like Mr Patel...proactive.

 

IMO room for another cut in December

 

rate cut is expected .. but this guy is no different from Rajan , though here after rate cuts or rate hikes will not be decided by the single person and there is no veto for the rbi governor

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rate cut is expected .. but this guy is no different from Rajan , though here after rate cuts or rate hikes will not be decided by the single person and there is no veto for the rbi governor

Was it? Was marked at 40% before the actual cuts

Sent from my Wileyfox Swift using Tapatalk

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1 minute ago, G_B_ said:

Was it? Was marked at 40% before the actual cuts

Sent from my Wileyfox Swift using Tapatalk

thats for 50 basis point cut ..  it was more or less certain that we ll get 25 bp cut

 

was going through some of the interviews of patel .. he is very much similar to Rajan ( both favors lower inflation for cutting rates ) .. 

anyway now rbi governor have reduced powers and government can easily force rbi to dance to its tunes atlast in things related to interest rates 

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On 18/09/2016 at 1:34 PM, jusarrived said:

I have been holding Havells , Yes Bank and Marico for 4 years or more. Any major dips I will add more , especially Marico . 

Recent investments : TVS motors and RBL Bank  .

 

Very small investment in RBL at the moment , bought it ~298 . Good asset quality , very low NPA's and the growth has been impressive in past few years . They are expanding fast , this may not necessarily be a good thing . Strong Management . I havent found many reasons not to buy this stock . it looks good for mid term as well imo . I think I will add some more between 295 -300 and more if it dips to ~270 . 

 

Shree Pushkar ( CMP 119 )  : Almost 70% revenues comes from Dye intermediates and rest from Fertilizers , cattle feeds etc . The company evolved from  Chemical Trading in early 90s to Manufacturing , so a relative late entrant . They are moving up the value chain , have added capacity . Claim to be a zero waste company . Impressive revenue growth in last 3-4 years , FY17 onwards the top line growth is expected to be higher . 

Risk : China clamping  down on some of the Dye intermediate/ Chemical companies due to environmental concerns was one of the reasons the focus is moved to India which is the second biggest source for these products . There is actually a shortage of supply  and thus he prices of these products spiked up 2-3 times in last one year . so you will notice a sudden revenue jump in most of the companies in this sector . There is no other alternative as its banned in all the developed countries . There is also a massive demand in the domestic market . I dont expect India to take similar actions , but keeping on eye on China .

 

The stock has been range bound in past 3-4 months . I started accumulating ~100 and my average price is 109 .  I dont see a big downside for this stock from current levels . May need to be patient with it .

 

 

CMP is 182 :)

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