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Showing posts from April, 2021

Options is Gambling or Not?

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  OTM options may look cheap with an absolute price perspective but it is mostly not what it looks like. Implied volatility of an OTM Put option will almost always be higher than the ATM which means buying OTM puts are expensive.   Buying Options helps traders participate in the stock market moves at an extremely low capital requirement. For instance, to participate in a bullish view on Nifty for the weekly option with ATM strike will today cost as low as Rs 9,750 (Strike: 14900, Premium: 130.7, Lot size: 75), that’s not even 5 digits. This attracts lots of retail investors to participate in buying option strategies and to further reduce costs. Very often they resort to buying Out of the Money (OTM) options which are generally extremely low premium, even though buying an OTM option still lets you participate in the view but the payoff may not be practically lucrative. {"uid":0.3576500607714479,"hostPeerName":"https:/...

Inflation Problem Solve. Do you know How?

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As per RBI Government or World Forum's India's Base Inflation would be around  4% to 6%. With our Limited earnings how you can manage or solve this problem. This question must have arise in your mind every day. So let's Take an example if your House hold Income is annually 10 Lakhs and Grocery Bill is 20% of that. It means 2 Lakhs per annuam  If you manage to reduce your  Groceries Bill by 10 % or you could have Save additional 1 Lakhs. Equal amount of money if you invest in FMCG going onwards for 15 to 20 Years  So your FMCG Stock Investment would be Approx 20 Lacs and if you see CAGR 25% . You will be having Sum of 100 Lakhs after 20 years. See the List of few FMCG based on your risk appetite you can Invest. One Basket of this 15 stock were valued as on 31 Dec 20 @Rs 45000. and after 3 months as on 31 March 21 it was valued @ Rs 47500. So we Made Rs 2500 Capital Appreciation. Most of these are Valued, Growth, High Dividend Yield Stocks. If y...