Category: Your Money

Option Strategies – The story so far

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I entered into some options trade, recommended by Stockviz “Option Ideas”. The above trade on TechM long call butterfly was put on 4th Sep. As I go through my options book today looks like all the long volatility trades paid off. Here are a few more that I entered the next day on 5th Sep.

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All in all not a bad week I must say!! I will be counting my blessings and exiting these trades shortly.

Login to StockViz by clicking on image and Go Algo!

[stockquote]BAJAJ-AUTO[/stockquote] [stockquote]BANKBARODA[/stockquote] [stockquote]KOTAKBANK[/stockquote] [stockquote]TECHM[/stockquote]

KFA: Trying to break free?

A 6% return in a 5 days time and the scrip still headed up. [stockquote]KFA[/stockquote] was trading cheap about a week ago. With hopes of FDI in the airline industry, it seems to have gotten the push. The technicals as of yesterday suggest a hold, but fundamentals haven’t improved that much over the week.

Prices pierced through the last 20 days triangle with the support of higher volumes suggesting a bullish breakout.

So, set your stop-losses at 9.50 and wait for the trend to play itself out. image

Sticker shock!

Stocks worth more than Rs.1000 a year ago show an average yearly return of 9%, versus the 4% and –2% of [stockquote]NIFTYBEES[/stockquote] and [stockquote]JUNIORBEES[/stockquote].

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Is the 4 digit price tag a psychological barrier that stops you from buying them?
 
Average returns of the top 5 performers for the last year [stockquote]ULTRACEMCO[/stockquote] ,[stockquote]OFSS[/stockquote], [stockquote]DPSCLTD[/stockquote], [stockquote]EICHERMOT[/stockquote], and [stockquote]MRF[/stockquote] is about 50%.
 
Higher ticker prices do not necessarily mean “expensive”. Investors who can tune themselves to ignore the price and focus on valuation will profit from trades that typical retail investors stay out of. 
 

Weekly Recap

NIFTY.2012-09-03.2012-09-07

The NIFTY ended on a bullish note, shooting up +2.29% for the week.
Biggest losers were IDFC (-5.07%), BHEL (-3.89%) and TATAPOWER (-3.42%).
And the biggest winners were HCLTECH (+5.99%), MARUTI (+5.40%) and INFY (+5.32%).
Advancers lead decliners 34 vs 16
fii.2012-09-03.2012-09-07Gold: +2.37%, Banks: +1.30%. Infrastructure: -1.67%

Net FII flows for the week: $17.76 mm (Equity) and -$273.72 mm (Debt)

China’s plans to build roads to nowhere (again), ECB’s unlimited bond-buying boosted the markets.

Daily news summaries are here.