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19 hours ago, jusarrived said:

Okay cool , still quite a lot . 
 

Is this a highest bracket ? 

is this info on brokerage plans available on net anywhere ? My monthly spend is on an average 40-80K , you think moving to Motilal can be cheaper for me or is it only if I spend 2 lac upwards ? 
How about leverage ? I will take anything more than Zerodha , it’s 2x these days lol 
 

 

 

even MO  charge 10 to 13rs per lot for 20x leverage .. hight the volume , they reduce the brokerage , 6rs is the minimum with MO ..

there are other brokers who give 20 to 40x leverage like astha , wisdom etc .. their brokerage is even higher

 

almost all the full fledged brokers have flexible plans for high volume traders ..

you have to move to leverage trading only if you have some working intraday strategy , otherwise no point in moving for leverage trades ..  

 

if you put 20L and ask for a 20x leverage then its 4 crore margin , you should know what todo with that money ..

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@velu What's your take on investing in gold and sovereign gold scheme by RBI. Is it worth investing now. I'm guessing gold is in an all time high but I'm worried it may remain on the same spot for the next few years. The scheme is for 9 years with an option to get out after 5. I checked the history on gold. In 1992, it was 4330 per 10g but in 2001 it was 4300. I don't want to invest in something that will yield me a 0 or minimal return that even a SB account will yeild more

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4 hours ago, Real McCoy said:

@velu What's your take on investing in gold and sovereign gold scheme by RBI. Is it worth investing now. I'm guessing gold is in an all time high but I'm worried it may remain on the same spot for the next few years. The scheme is for 9 years with an option to get out after 5. I checked the history on gold. In 1992, it was 4330 per 10g but in 2001 it was 4300. I don't want to invest in something that will yield me a 0 or minimal return that even a SB account will yeild more

 

me only trader :(( 

if you are buying gold , then keep selling covered gold call .. will generate consistent returns

i think gold wont move for years and compensates it a year when stock and bond markets are bad 

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On 7/17/2020 at 6:43 PM, Real McCoy said:

@velu What's your take on investing in gold and sovereign gold scheme by RBI. Is it worth investing now. I'm guessing gold is in an all time high but I'm worried it may remain on the same spot for the next few years. The scheme is for 9 years with an option to get out after 5. I checked the history on gold. In 1992, it was 4330 per 10g but in 2001 it was 4300. I don't want to invest in something that will yield me a 0 or minimal return that even a SB account will yeild more

I bought gold this month under RBI SGB. It is 8 year bond. It is a good investment. Apart from the increase in price of gold, the Investor also gets about 2.5 percent semi annually iirc.

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21 hours ago, velu said:

 

me only trader :(( 

if you are buying gold , then keep selling covered gold call .. will generate consistent returns

i think gold wont move for years and compensates it a year when stock and bond markets are bad 

Gold has given good returns. It is also a safe investment. Since 80's I have seen it's price increase well and without any risks that are associated with stocks or MF. Always nice to have a diversified investment portfolio. Each of the investment types has its own benefit and a mix of them offers very good diversification and risk mitigation.

Edited by Straight Drive
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2 hours ago, Straight Drive said:

Reliance , Infosys, HDFC Bank , Mindtree beat the expectations when they declared results this week even though there were lot of headwinds in Q1.

 

 

i didnt expect this move from 7500 to ~11000 .. infact i might have bet my home against this move :lol: 

investors like you will be super happy for this i guess .. many experienced hands might have invested arnd 8.5k levels 

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11 hours ago, velu said:

 

i didnt expect this move from 7500 to ~11000 .. infact i might have bet my home against this move :lol: 

investors like you will be super happy for this i guess .. many experienced hands might have invested arnd 8.5k levels 

I would never bet my property investments on markets. 

 

My portfolio is doing well as i added to investments to my robust performing portfolio when NIFTY was at around 9500. As usual Market has surprised everyone once again by not allowing most investors to time it. Still, i am glad i entered again at around 9500 and seeing the benefits now. At 10,500 and above levels the stock selection needs to be very astute. 

The major reason for NIFTY's elevated performance was in some parts due to TCS and RIL in last couple of weeks. Profit booking is happening as NIFTY is rising and hence the rally is not as smooth as it usually is when the bulls take charge. 

 

Most industries are showing signs of recovery imo. Oil demand too is rising . imo NIFTY may surpass this years high in October. It is not going to stay at these levels. Those who will invest in quality stocks now will be rewarded imo and i see a very good chance for investors to earn 20% profit in short positional trades in quality stocks. There is lot of money to be made if one uses experience and knowledge to invest in the market.

 

The only dampener could be the second wave of COVID-19, however that too is capped as economies have opened up except for some localized restrictions. 

 


 

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On 7/17/2020 at 11:39 PM, velu said:

 

me only trader :(( 

if you are buying gold , then keep selling covered gold call .. will generate consistent returns

i think gold wont move for years and compensates it a year when stock and bond markets are bad 

I don't understand the covered gold call. what is it. :confused:

On 7/18/2020 at 8:53 PM, Straight Drive said:

I bought gold this month under RBI SGB. It is 8 year bond. It is a good investment. Apart from the increase in price of gold, the Investor also gets about 2.5 percent semi annually iirc.

I thought it was a 9 year bond with the option of bailing out after 5 years. Good point about the interest in addition to the gold price increase

On 7/18/2020 at 8:56 PM, Straight Drive said:

Gold has given good returns. It is also a safe investment. Since 80's I have seen it's price increase well and without any risks that are associated with stocks or MF. Always nice to have a diversified investment portfolio. Each of the investment types has its own benefit and a mix of them offers very good diversification and risk mitigation.

Thats a very good point in terms of diversification. My only issue is gold price more or less stayed constant throughout the 90s. Hopefully it wont be like that in the future :pray:

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3 hours ago, Real McCoy said:

I don't understand the covered gold call. what is it. :confused:

I thought it was a 9 year bond with the option of bailing out after 5 years. Good point about the interest in addition to the gold price increase

Thats a very good point in terms of diversification. My only issue is gold price more or less stayed constant throughout the 90s. Hopefully it wont be like that in the future :pray:

 

 

It took 13 days for the gold reflect in demat account. However, the PDF  docunent (certificate) of RBI SGB was sent to my registered email id on the day of payment itself.  Thought this info would be helpful to anyone who may opt for this scheme.

 

Even if gold prices are stagnant or may go down by  approx 6000 Rs like few years back when it dropped from 32k to 26 k or something like that, they bounce back. I also remember it was around 12k in first decade of this century and now it is 50k in 2020.

 

I hope the trend of gold giving good returns will continue. Also it is universal value so even if currency is down due to war or economic failure of country, one can survive in gold investments. That is worst case though but that is another importance of having gold in the kitty instead of currency of same value.

 

One can also get loan against gold in quick time, which again helps if there is a drastic need of money in an hour's time.

 

Better to add gold every year and add up to the investment in gold.

 

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3 hours ago, Real McCoy said:

Nice try :winky:

BULLISH SCENARIO: SHARES RISE TO $60 AND THE OPTION IS EXERCISED
January 1 Buy XYZ shares at $50
January 1 Sell XYZ call option for $4 - expires on June 30, exercisable at $55
June 30 Stock closes at $60 - option is exercised because it is above $55 and you receive $55 for your shares.
July 1 PROFIT: $5 capital gain + $4 premium collected from sale of the option = $9 per share or 18%
 
Covered calls don't give you less than max profit you would have made otherwise, but minimize the risk of a large loss in a losing scenario. 
BEARISH SCENARIO: SHARES DROP TO $40 AND THE OPTION IS NOT EXERCISED
January 1 Buy XYZ shares at $50
January 1 Sell XYZ call option for $4 - expires on June 30, exercisable at $55
June 30 Stock closes at $40 - option is not exercised and it expires worthless because stock is below strike price. (the option buyer has no incentive to pay $55/share when he or she can purchase the stock at $40)
July 1 LOSS: $10 share loss - $4 premium collected from sale of the option = $6 or -12%. 
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16 hours ago, Straight Drive said:

 

 

It took 13 days for the gold reflect in demat account. However, the PDF  docunent (certificate) of RBI SGB was sent to my registered email id on the day of payment itself.  Thought this info would be helpful to anyone who may opt for this scheme.

 

Even if gold prices are stagnant or may go down by  approx 6000 Rs like few years back when it dropped from 32k to 26 k or something like that, they bounce back. I also remember it was around 12k in first decade of this century and now it is 50k in 2020.

 

I hope the trend of gold giving good returns will continue. Also it is universal value so even if currency is down due to war or economic failure of country, one can survive in gold investments. That is worst case though but that is another importance of having gold in the kitty instead of currency of same value.

 

One can also get loan against gold in quick time, which again helps if there is a drastic need of money in an hour's time.

 

Better to add gold every year and add up to the investment in gold.

 

Is it necessary to hold a demat account for SGB. I ask this because I'm new to diversification. I'm thinking its for the bond to be tradable in the stock exchange right. I only have SB and FD never traded in my life. Having lived in the US for a while, I know the US stock exchange is a ponzi scheme. How do you think India is in that regard.

Coming back to gold prices, it was 4000+ in 2000. In the last 20 years, it has improved considerably. Only in 90s and 2012-18 it remained stagnant or went down. I'm not concerned about the short term ups and downs (short term in the sense 1 or 2 years). I'm concerned about long term stagnation. Like you I hope it will give good returns.

Good point about war time or economic failure. I'm not completely sold on this govts economic policy. Seems like they relied on the majority dissatisfaction with the cong regime to win votes and failed to do actual progress on the economic front. I'm also thinking about having physical gold and store in a locker (in addition to SGB) which I can increment every time. I heard they issue gold coins in the banks which if its available, I'm planning to buy each year.

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13 hours ago, coffee_rules said:
BULLISH SCENARIO: SHARES RISE TO $60 AND THE OPTION IS EXERCISED
January 1 Buy XYZ shares at $50
January 1 Sell XYZ call option for $4 - expires on June 30, exercisable at $55
June 30 Stock closes at $60 - option is exercised because it is above $55 and you receive $55 for your shares.
July 1 PROFIT: $5 capital gain + $4 premium collected from sale of the option = $9 per share or 18%
 
Covered calls don't give you less than max profit you would have made otherwise, but minimize the risk of a large loss in a losing scenario. 
BEARISH SCENARIO: SHARES DROP TO $40 AND THE OPTION IS NOT EXERCISED
January 1 Buy XYZ shares at $50
January 1 Sell XYZ call option for $4 - expires on June 30, exercisable at $55
June 30 Stock closes at $40 - option is not exercised and it expires worthless because stock is below strike price. (the option buyer has no incentive to pay $55/share when he or she can purchase the stock at $40)
July 1 LOSS: $10 share loss - $4 premium collected from sale of the option = $6 or -12%. 

Good info :two_thumbs_up:

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