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Strategies in derivatives

Strategies in derivatives

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Published by Gayatri Bhatia
Top strategies used in derivatives trading.
Includes strategies for futures and options both.
Top strategies used in derivatives trading.
Includes strategies for futures and options both.

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Categories:Types, Research
Published by: Gayatri Bhatia on Jan 01, 2013
Copyright:Attribution Non-commercial

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01/01/2013

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Strategies used

1. BUY CALL

When market is down, buy just out of money Call.
2. BUY PUT

When market is Up and correction is due, buy Put.
3. BUY FUTURE AND SELL CALL

When you are bullish but at the same time you want to cover any downward.
4. BULL SPREAD

When market is in narrow range, buy “IN THE MONEY” CALL and sell “OUT OF MONEY” CALL.
5. CALENDER SPREAD

When you want to take TEJI POSITION for the next month, Sell Current Month CALL and Buy Next month Call.
6. STRANGLE

When you are not sure in which direction the market will go, Buy CALL & PUT of the same strike price.
7. STRADDLE

When results are expected and you do not know in which direction the stock will move, Buy “OUT OF MONEY” Call and “OUT OF MONEY” Put.

8. STOCK INSURANCE

Buy Future and Buy PUT to cover down side.

9. SELL CALL & PUT

Sell naked “OUT OF MONEY” Call & Put. .In the last days of the Contract Period.

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