Check List – Preparation for Election Day Trading

Dharam Chand Sethia Uncategorized Leave a Comment

23rd May 2019 – Thursday, is elections result day in India. India is going to find her Prime minister for next 5 years (most probably). For the stock market enthusiast this day is going to be very important as – Volatility will become volatile These days attract all type of participants.For few people in the past elections day -there fortunes changed and for some it’s time for vacations on these event as per their risk management system. As a trader who has joined recently,and witnessing elections for the first time – what shall he/she be doing? What shall be on …

Currency Markets- Green shoots

Dharam Chand Sethia Uncategorized Leave a Comment

We see success more than failures. NSE despite being a leading exchange in overall equity and derivatives segment had very few success in terms of newer categories of markets.There weekly options have become super-hit product and is also taking away attention from monthly options. Few more products that are successful in the west but aren’t working in India are – Debt markets,Volatility products,ETFs. A lot of investment and time is put by government machinery and private players too,but they haven’t meet the expected success.Commodities was a success but few bad intentions killed that space completely,and revival looks far.

However my point is it takes a lot of effort from the entire ecosystem to reach and make a healthy and vibrant market.You name it- Product,Infrastructure,Traders,Investors,Hedgers,FIIs,Governments,Regulators,Arbitrageurs,Data Vendors and many more.

High Margin in Options-Good or Bad!!

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What happens when the consumer facing FMCG companies sees their raw materials’ prices increasing.

Pass it on to the consumer so the profitability remains same.
Bear the cost,take a hit on profits.

Similar is the scenario currently in Option selling world. Some traders will sell options only where they find opportunities, shift their focus more on money management. Some will still continue their existing pattern to trade, and adjust as per market returns.Some will innovate new methods.

Pre-Open & Post Closing Markets – Indian market.

Dharam Chand Sethia Uncategorized Leave a Comment

9:15 AM – The computer and mobile screens across India start throwing prices of derivatives traded in Indian stock markets.

3:30 PM- Entire market shuts off, & we’re done for the day.

Why 9:08AM is an important time in our markets? Can i trade after 3:30 PM? Will those be considered a normal trade. What’s the process, how does trade take place, are these similar to normal markets. Where can i find about these trades. Are there any opportunities available?

Derivatives derive their prices from underlying cash market.This post is about what happens before 9:15 AM and after 3:30 PM in Cash Market.

Synthetic Strategies

Dharam Chand Sethia Uncategorized Leave a Comment

Synthetic strategies are tools to plan your execution of ideas well. Synthetic positions create a similar payoff strategy using different contract types.One can create Synthetic Call,Put and stock using the rest of the two instruments. Some of the commonly used strategies are Covered call, protective put & Synthetic stock.