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Bear Put Spread

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A bear put spread comprises one long put with a high strike price and one short put with a low strike price. Both of them have the identical stock and the same expiry date. A bear put spread is formed for a net debit and profits as the underlying stock decreases in price. Profit is low if the stock price declines below the strike price of the short put lower strike, and possible loss is limited if the stock price rises above the strike price of the long put. Maximum profit This highest profit is achieved if the stock price is below the strike price of the short put at expiry. Short puts are usually allowed at expiration when the stock price is below the strike price.  Maximum risk The highest risk is equal to the cost of the spread containing commissions. A loss of this capital is realized if the position is held to expiry and both puts expire worthless. Both puts will expire useless if the share price at expiration is above the strike price of the long put (higher strike). When t...

What is Open Interest in Futures and Options

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Open interest shows you how many outstanding contracts are available in the market. Open interest is usually connected with the Futures and Options markets. Let’s say Vinay buys 1 lot of NIFTY Futures, and Ravi sells 1 lot. Now here, Open interest is 1, but volume is 2. Imagine another trader now entering the market - Sarath shorts 1 NIFTY lot and thereby creates a new contract. Now the open interest is two, but volume is three. Open Interest mainly performs two tasks - Tells you how liquid the stock is, more the Open interest more liquid it is. Open interest hit with price can tell you the behavior of the action. So if there is an improvement in price with an increase in open interest, it means more people are joining the market with a long view. When the price is moving down along with open interest, it means open interest is reducing. Short build-up: The traders are assuming that stock to go down, so they are selling future contracts. Short covering It is done by traders when the s...

Radhakishan Damani Portfolio

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Radhakishan Damani is a famous investor in the Indian stocks market. He is the second wealthiest person after Ambani. Radhakishan Damani started his investment career after his father died. His father used to work in Dalal street. Radhakishan Damani is a master in choosing the multi-bagger stock. He is also known as a man with a Midas touch. Radhakishan Damani started a cooperative departmental store called Apna Bazaar in the year 1999. In the year 2000, Radhakishan Damani stopped his career in the stock market and launched DMart. Click Here for Latest Radhakishan Damani Portfolio Updates Radhakishan Damani first DMart store was launched in 2002 in Powai. The value of DMart at the time of the initial public offering is 18000 crores. Here are the few lists of Radhakishan Damani Portfolio. Stock Name Holders Name Current Price (Rs.) Quantity Held Holding Percent Change from Previous Qtr Holding Value (Rs.) Avenue Supermarts Ltd Mr.Radhakishan S. Damani & Others (Promotors) 2929.05 4...

Vijay Kedia Portfolio

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Vijay Kedia is a successful Indian investor based in Mumbai. He started investing in the stock market at the age of 19 years. Vijay Kedia is the founder of Kedia Securities Pvt. Ltd. Vijay Kedia was born in a Marwadi family. He entered into trading because he had to support his family. He has given significant management tips at the London Business School. At the age of 14, he recognized his passion for the stock market. Vijay Kedia follows the SMILE as a principle to his investing.  He is also known for some tremendous Multi Bagger stocks like Atul Auto, Cera Sanitaryware and Aegis Logistics. Click Here for Latest  Vijay Kedia Portfolio  Update Here are the few list of vijay kedia portfolio Stock Name Holders Name Current Price (Rs.) Quantity Held Holding Percent Change from Previous Qtr Holding Value (Rs.) Innovators Facade Systems Ltd. Vijay Kishanlal Kedia 46.85 2010632 10.66% 9.4 Cr Lykis Ltd. Vijay Kishanlal Kedia 25.25 1934512 9.98% 4.9 Cr Repro India Ltd. Vijay Ki...