Showing posts with label BUYING CALL OPTION Vs WRITING PUT OPTION. Show all posts
Showing posts with label BUYING CALL OPTION Vs WRITING PUT OPTION. Show all posts

Tuesday 25 February 2014

Always Chose Liquid Counters to Trade Options

Simply put, liquidity is all about how quickly a trader can buy or sell something without causing a significant price movement. A liquid market is one with ready, active buyers and sellers at all times.Here’s another, more mathematically elegant way to think about it: Liquidity refers to the probability that the next trade will be executed at a price equal to the last one.Stock markets are generally more liquid than their related options markets for a simple reason: Stock traders are all trading just one stock, but the option traders may have dozens of option contracts to choose from. Stock traders will flock to just one form of DLF stock, for example, but options traders for DLF have perhaps six different expirations and a plethora of strike prices to choose from. More choices by definition means the options market will probably not be as liquid as the stock market.Of course,

Monday 25 June 2012

CALL GIVEN OF SBIN IS ROCKING!!!

Our SBIN 2100 PUT Rocks!!  Two targets achieved in SBIN call given in our last post