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Larry1234

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Everything posted by Larry1234

  1. Larry1234
    Hey, I usually post threads related to options trading and strategies from the beginners point of view. You guys can refer my posts related to option basics and also post your opinion on that. Happy Learning
  2. Larry1234
    I agree with Mr. henryduncan12. IMO, Moving averages and oscillators are the best trading methods for intraday and swing traders.
  3. Larry1234
    I would rather suggest start with stocks and that too in cash market, not in derivative (i.e. F&O), once you are comfortable with trading on this, then start trading in derivative segments of stocks where you can leverage your earnings.
  4. Larry1234
    I would rather suggest Technical, Because understanding the fundamentals is basically understanding the financial statement analysis and time horizon for this is more compared to technical analysis. If the objective is trading, go for technical analysis or if the objective is long term price appreciation, go for fundamental analysis.
  5. Larry1234
    Hi Angele, These are the basics not for Forex but for all the markets whether It is capital, money or derivative. Recently I have started posting option basics. You can check my posts and can also learn options as well Happy Learning
  6. Larry1234
    Hello, Can you please tell us that how is it going to help us ?
  7. Larry1234
    Why do you think so ? Is the based upon Technical analysis ? Because I don't that the fundamentals of the silver can change in the near future so suggesting not to invest on the basis of fundamental analysis.
  8. Larry1234
    In my opinion you made a decent profit if the risk taken by you is moderate. We can compare return only in terms of risk. We all know Higher the risk, higher the risk. If you have done trading in derivative market and made 30%, then its not enough. Derivative comes with a higher if not hedged,.
  9. Larry1234
    Hi All, What option strategy we should follow to gain for S&P 500 for the month of Jan ? Need suggestions
  10. Larry1234
    Hi All, I am Larry. I am passionate about derivative trading. I have been trading in the Equity Derivative market ( basically index and stock Futures & Options) for the last three years. I would like to learn more about the same and will share my experience as well regarding how to make money using F&O. Regards, Larry
  11. Larry1234
    I would like to tell you about options. In my opinion, options are the most important financial instrument. Its really easy to make money using option strategies. Let's understand the terminologies related to option - There are two basic types of options, call options and put options. • Call option: It gives the holder the right but not the obligation to buy an asset by a certain date for a certain price. • Put option: It gives the holder the right but not the obligation to sell an asset by a certain date for a certain price. • Option price/premium: It is the price which the option buyer pays to the option seller. It is also referred to as the option premium. • Expiration date: The date specified in the options contract is known as the expiration date, the exercise date, the strike date or the maturity. • Strike price: The price specified in the options contract is known as the strike price or the exercise price. • American options: These can be exercised at any time up to the expiration date. • European options: These can be exercised only on the expiration date itself. European options are easier to analyze than American options and properties of an American option are frequently deduced from those of its European counterpart. • In-the-money option: An in-the-money (ITM) option would lead to a positive cash flow to the holder if it were exercised immediately. A call option on the index is said to be in-the-money when the current index stands at a level higher than the strike price (i.e. spot price > strike price). If the index is much higher than the strike price, the call is said to be deep ITM. In the case of a put, the put is ITM if the index is below the strike price. • At-the-money option: An at-the-money (ATM) option would lead to zero cash flow if it were exercised immediately. An option on the index is at-the-money when the cur- rent index equals the strike price (i.e. spot price = strike price). • Out-of-the-money option: An out-of-the-money (OTM) option would lead to a negative cash flow if it were exercised immediately. A call option on the index is out-of-the- money when the current index stands at a level which is less than the strike price (i.e. spot price < strike price). If the index is much lower than the strike price, the call is said to be deep OTM. In the case of a put, the put is OTM if the index is above the strike price. • Intrinsic value of an option: The option premium has two components - intrinsic value and time value. Intrinsic value of an option at a given time is the amount the holder of the option will get if he exercises the option at that time. The intrinsic value of a call is Max[0, (S — K)] which means that the intrinsic value of a call is the greater of 0 or (S— K). Similarly, the intrinsic value of a put is Max [0, K — S], i.e. the greater of 0 or (K — St). K is the strike price and St is the spot price. • Time value of an option: The time value of an option is the difference between its premium and its intrinsic value. Both calls and puts have time value. The longer the time to expiration, the greater is an option’s time value, all else equal. At expiration, an option should have no time value. Happy Learning
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