Share Market Learn With Earn India

Date. 10 August 2020

Today’s Market

MARKET SCRIP	OPEN	HIGH	LOW	CLOSE	52 WEEK HIGH	52 LOW
NSE
NIFTY 50	11270	11337	11238	11270	12430	7511
NIFTY FUTURE	11274	11334	11242	11294	12419	7526
BANK NIFTY	21824	22071	21795	21900	32613	16116
BANK NIFTY FUTURE	21851	22099	21802	21971	32773	16020
CURRENCY USD-INR	75.2025	75.2025	74.9900	75.0950	77.01	68.663
COMMODITY-GOLD	55049	55449	54861	54789	49328	332701
COMMODITY-SILVER	75314	76219	74302	74160	53181	33619
COMMODITY-CRUDE	3129	3172	3106	3095	4671	804

BSE
SENSEX	38168	38430	38073	38182	42273	25638
BANKEX	24742	25069	24739	24883	37193	18430

Market Prediction (Speculation) Factor’s

MARKET SCRIP	RESULT
VIX	22.51(Range bound Bullish)
PCR	0.89(Bearish)
PE	31.23(Bearish)
DII	-504.92(Range bound)
FII	302.88(Range bound)
SGX NIFTY	11720(Bearish)
DOW JONES	27652(Bullish)
	Overall market trend bearish Range bound

Market Analysis News’s/ Business Current Affair’s

Tejas networks has reveived a purchase order of Rs. 66 Cr from L&T construction, to supply its GPON based fiber broadband products and highperformance metro Ethernet swithes for a prestigious Indian defense network project.

Steel strips wheel ltd has bagged firm export orders for over 30000 wheels for US caravan trailer market to be executed in the month of September from its Chennai plant.

Pidilite is the market leader in adhesives and sealants construction chemicals hobby colours and polymer emulsions industry in India. Its flagship brands fevicol and m-seal have a market shares of 70 each in the domestic market.

Bata India revenue declined by 85% yoy to Rs 134.8 Cr due to no production and no sales as retail stores remained closed throughout april and may due to the lockdown.

M&M results were below our as well as street estimates due to lower than anticipated margin performance in automotive segment.

Emami ltd focus back on regaining growth

Abbott India ltd reported a strong set of results for the quarter revenue stood at Rs 1064 Cr up 6.5% yoy

Amara raja batteries to continue outperforming industry

JK Lakshmi cement ltd reported inline standalone revenue at Rs 825 Cr down 20.8% yoy

KEI posted better than expected Q1 results despite challenges which was better than ours as well as consensus estimates.

FDC board approves buyback of its 2163000 shares at a price of Rs 450 per equity share.

Valiant bags orders from European and Asian power utilites

Results announced Affle India, Sudarshan chemical industries, Wonderla holidays, mangalam cements,JK Lakshmi cements, Divis laboratories, Cipla, Lupin, Caplin point, TTK prestige, Meghmani organics, ipca lab., HPCL

Learning Point/ Educational Study Point

Long call option strategy-

For an investor who buys a call option, they have the right to purchase stock at the strike price up until the date the option contract expires.

Profit/Loss-

Maximum Loss = Net Premium Paid

The maximum gain for a long call strategy is unlimited as the stock can continue to move up gaining more and more value.

Long put option strategy-

The long put options trading strategy offers an individual the right to sell an underlying stock at the specified price, point A, as listed on the graph. When the investor purchases a put option, he or she is betting that the stock will fall below the strike price before the expiration date.

Profit/Loss

Maximum Loss = Net Premium Paid

The maximum gain for a long put strategy is unlimited as the stock can continue to move down gaining more and more value, at least until it reaches zero.

Short call option strategy

Lawmakers in Washington continue to bicker over how much federal assistance should be provided. Republicans proposed a $200 weekly enhancement for at least two months before transitioning to replacing 70% of laid-off workers' former wages through the end of 2020. Democrats, on the other hand, are calling to continue the $600 supplement until early next year.

Profit/Loss

Maximum Profit = Net Premium Received

The maximum loss for a short call strategy is unlimited, as the stock can continue to move higher with no limit.

Short put option strategy-

When it comes to single option trades, selling a put option is one of two bull market strategies, the other being the long call option.

Profit/Loss

Maximum Gain = Net Premium Received

The maximum loss for a short put strategy is unlimited as the stock can continue to move against the trader, at least until it reaches zero.

Covered Call Option Strategy-

The covered call strategy involves the trader writing a call option against stock they’re purchasing or already hold.

Profit/Loss

The maximum profit with this strategy is the difference between the strike price and the current stock, plus the premium received for selling the call options contract. Beware of the pitfalls of this strategy, though. The potential loss of this strategy can be substantial.

This loss happens when the price of the underlying asset decreases. However, unlike stock trading, the downside is slightly less painful due to the premium received, that will cushion any downside stock movement.

Bull Call Spread Option Strategy-

A bull call spread (long call spread) is a vertical spread consisting of buying the lower strike price call and selling the higher strike price call, both expiring at the same time.

Profit/Loss

The max profit of a bull call spread is calculated by taking the difference between the two strike prices minus the premium paid. This is reached when the strike trades over the above strike price at expiration.

Max loss is the cost of the trade. This is reached when the stock trades under the lower strike price at expiration.

Bear Call Spread Option Strategy-

The bear call spread is a vertical spread options strategy where the investor sells a lower strike price call option, represented by point A, and buys a higher strike price call option, point B, within the same expiration month.

Profit/Loss

The most an investor can expect to make on this trade is the credit or premium they received. If the stock finishes below the lower strike price at expiration, the investor will achieve maximum profit.

The maximum loss can be calculated by taking the difference between the two strike prices minus the premium received. This is reached when the stock price finishes over the higher strike price on the expiration date. Generally, if short calls go into the money, the trader will most likely be assigned the stock position at expiration. However, when calls go deep into the money, there is always a risk of early assignment.

Bull Put Spread Option Strategy-

The Bull Put Spread is a vertical spread strategy where the investor sells a higher strike price put option, shown as point B, and buys a lower strike price put option, point A, within the same expiration month.

Profit/Loss

The most an investor can expect to make on this trade is the credit they received. If the stock finishes above the higher strike price at expiration, the investor will achieve max profit.

The max loss can be calculated by taking the two strike prices minus the premium received. This is reached when the strike trades over the above strike price at expiration.

Bear Put Spread Option Strategy-

A bear put spread is a vertical spread consisting of being long the higher strike price put and short the lower strike price put, both expiring in the same month.

Profit/Loss

The max profit of a bear put spread is calculated by taking the difference between the two strike prices minus the premium paid. This is reached when the strike trades below the lower strike price at expiration.

Max loss is the cost of the trade. This is reached when the stock trades above the upper strike price at expiration.

Call Backspread Option Strategy-

A call backspread is a strategy that involves selling lower strike price calls, represented by point A, and then buying a larger number of higher strike price calls, represented by point B. The lower strike price is usually an at the money option at the time of execution.

Profit/Loss

This trade has unlimited profit potential, once the stock moves past the upper strike and continues to trade higher profits continue to build.

This trade would reach its maximum loss when the stock pins at the upper long strike prices at expiration. This would mean the short calls would finish in the money and have value while the long calls would be out of the money and have no value.

Long Straddle Option Strategy-

The long straddle involves buying a call and buying a put option of the same underlying asset, at the same strike price and expires the same month.

Profit/Loss

The maximum gain for a long straddle strategy is unlimited as the position can continue to pick up gains the further the stock travels in either direction.

Maximum Loss = Net Premium Paid

Short Straddle Option Strategy-

A short straddle consists of selling a call and a selling a put with the same underlying security, strike price, and expiration date.

Profit/Loss

Maximum Gain = Net Premium Received

The maximum loss for a short straddle strategy is unlimited as the stock can continue to move against the trader in either direction.

Iron Condor Option Strategy-

The iron condor option strategy is a favorite among many option traders, including hedge funds, money managers, and individual investors. The options strategy is executed by simultaneously selling a bear call spread, and bull put spread.

Profit/Loss

The trader starts to lose on this trade once the stock moves outside the inner short strike prices, and penetrate the call spread upper side or the put spread on the lower side. The maximum loss is calculated by taking the difference between either the call side or put side minus the premium received. Same as a bear call spread or bull put spread.

The maximum win is established if the stock expires between the two short strikes, represented by point B and C on the graph above.

Long Calendar Spread with Calls Option Strategy-

A long calendar spread with calls, also known as a time spread, is a position made up of selling a short-term call and buying a long-term call with the same strike price.

Profit/Loss

This position has unlimited profit potential, but not until the shorter-term call expires worthless.

If the stock has a sharp move in either direction before the short-term call expires, then the time value of this spread becomes worthless, and the trader will lose his premium paid for the trade.

Long Calendar Spread with Puts Option Strategy-

A long calendar spread with puts, also known as a time spread, is a position made up of selling a short-term put and buying a long-term put with the same strike price.

Profit/Loss

This position has unlimited profit potential, at least until the stock reaches zero, but not until the shorter-term put expires worthless.

If the stock has a sharp move in either direction before the short-term put expires, then the time value of this spread becomes worthless, and the trader will lose his premium paid for the trade.

Diagonal Spread with Calls Option Strategy-

A diagonal spread with calls is a position made up of buying one long-term call at a lower strike price and selling a shorter-term call at a higher strike price.

Profit/Loss

The maximum profit is calculated by adding up all the premiums received from selling short-term upside calls, minus the initial premium to execute the trade, plus the stock price minus the strike price on the final month.

The maximum loss for a diagonal call spread is limited to the cost of the trade, which is met when the stock trades down under the long-term call strike price.

Diagonal Spread with Puts Option Strategy-

A diagonal spread with puts is a position made up of buying one long-term put at a higher strike price and selling a shorter-term put at a lower strike price.

Profit/Loss

The maximum profit is calculated by adding up all the premiums received from selling short-term downside puts, minus the initial premium to execute the trade, plus the strike price minus the stock price on the final month.

The maximum loss for a diagonal put spread is limited to the cost of the trade, which is met when the stock trades up above the long-term put strike price.

Christmas Tree Spread with Calls Option Strategy-

A Christmas tree spread with calls is an advanced options strategy that consists of three legs and six total options. The option strategy involves buying one call at strike price A, skipping strike price B, selling three calls at strike price C, and then buying two calls at strike price D. It is somewhat similar to a butterfly spread, where the desired outcome is a pin at the short middle strikes, but given a more room to run on the upside, thus a more bullish option strategy.

Profit/Loss

The maximum profit is calculated by taking the difference between the lowest strike price and the three short middle call strike price, then subtracting the cost of the trade. For example, if the distance between point A and C was $10 and the trade cost $2.50, then the max profit would be $7.50.

The maximum loss would be the cost of the trade, so with the same example, the maximum loss would be $2.50.

Christmas Tree Spread with Puts Option Strategy-

A Christmas tree spread with puts is an advanced options strategy that consists of three legs and six total options. The option strategy involves buying one put at strike price D, skipping strike price C, selling three puts at strike price B, and then buying two puts at strike price A. It is somewhat similar to a butterfly spread, where the desired outcome is a pin at the short middle strikes, but given a more room for the stock to drop in price, thus a more bearish option strategy.

Profit/Loss

The maximum profit is calculated by taking the difference between the highest strike price and the three short middle put strike price, then subtracting the cost of the trade. For example, if the distance between point D and B was $10 and the trade cost $2.50, then the max profit would be $7.50.

The maximum loss would be the cost of the trade, so with the same example, the maximum loss would be $2.50.

Butterfly Spread with Calls Option Strategy-

A long butterfly spread with calls is an advanced options strategy that consists of three legs and four total options. The trade involves buying one call at strike price A, selling two calls and strike price B and then buying one call at strike price C. The set up is what would happen if an investor combines the end of a long call spread and the start of a short call spread, joining them at strike price B.

Profit/Loss

The maximum profit is calculated by taking the difference between the lowest strike price and the middle strike price, then subtracting the cost of the trade. For example, if the distance between point A and B was $5 and the trade cost $0.70, then the max profit would be $4.30.

Butterfly Spread with Puts Option Strategy-

A long butterfly spread with puts is an advanced options strategy that consists of three legs and four total options. The trade involves buying one put at strike price A, selling two puts and strike price B and then buying one put at strike price C. The setup is what would happen if an investor combines the end of a long put spread and the start of a short put spread, joining them at strike price B.

Profit/Loss

The maximum profit is calculated by taking the difference between the higher strike price and the middle strike price, then subtracting the cost of the trade. For example, if the distance between point C and B was $5 and the trade cost $0.70, then the max profit would be $4.30.

Iron Butterfly Option Strategy-

An iron butterfly spread is an advanced options strategy that consists of three legs and four total options. The trade involves joining a bull put spread and a bear call spread at strike price B.

Profit/Loss

The maximum profit would be the premium received for the trade, so if a trader received a $3.40 credit for opening the trade, the maximum profit would be $3.40, Which would be earned if the stock pin at the short strike prices on the expiration date.

Collar Option Strategy-

A collar is an options strategy that consists of buying or owning the stock, and then buying a put option at strike price A, and selling a call option at strike price B.

Profit/Loss

The maximum profit is calculated by taking the difference between the stock price and the short call, then subtracting the cost of the collar if acquired with a debt or adding the premium received if the position was opened for a credit. For example, if the stock was trading $100 and the investor acquired a 95/105 the collar for a $0.30 credit, then the max profit would be $5.30.

The maximum loss is calculated by taking the difference between the stock price and the long put, then adding the cost of the collar if acquired for a debt, or subtracting the premium received if opened for a credit. For example, if the stock was trading $100 and the investor acquired a 95/105 the collar for a $0.30 credit, then the max loss would be $4.70.

Protective Put Option Strategy-

A protective put strategy, also known as a synthetic long call or married put, is an options strategy that consists of buying or owning the stock, and then buying one put at strike price A.

Profit/Loss

The maximum profit is unlimited as owning the stock allows the investor to continue to make money as the stock trades higher.

The maximum loss is calculated by taking the difference between the stock price and the long put, then adding the cost of the put. For example, if the stock was trading $100, and the investor acquired a 95-strike put for $1.50, then the maximum loss would be $6.50.

Synthetic Long Stock Option Strategy-

The synthetic long stock position consists of buying a call and selling a put in the same month and at the same strike price.

Profit/Loss

The maximum profit is unlimited as owning the stock allows the investor to continue to make money as the stock trades higher.

The maximum loss is also unlimited, at least down to zero, as the stock falls in price losses continue to build up.

Risk Reversal Option Strategy-

The risk reversal options trading strategy consists of buying an out of the money call option and selling an out of the money put option in the same expiration month.

Profit/Loss

The maximum profit is unlimited as being long an upside call allows the investor to continue to make money as the stock trades higher.

The maximum loss is also unlimited, at least down to zero, as the stock falls in price losses continue to build upon the short put.

Take Revision

In previous session we see chart tools list and details for basic tools which basically used large time.

One Take Solution

Stock screener used for stock selection,

Stock edge

Money tree

Tickertape

Opstra option analysis

www.myfno.com

sensibul

trading view

stock rover

TC200

Stockchart.com

Yahoo finance

Cnn money

Robinhood

Reuters

Finviz

msn money central

Earning Point

Bajaj finance, bata india, cipla

Dividend yield stock- coal india, ntpc, nmdc, pfc, nlc

Shilpa medicare, fdc, beml, majesco, kokuyo camlin ltd, affle ind., zen technologies, iti, m&m, bpcl, sci, rec, nelco, walchandnagar, astra micro, Apollo microsvs, bel, bharat dynamics, cipla, divis lab, abott india, Hindustan auronotics, bharat forge, century text., himatisingka seide.

Article

Hello friends,

In recent weeks the recovery from America's jobs crisis seemed to have hit a roadblock, but last week's claims for first-time unemployment benefits fell more than expected.

That said, another 1.2 million Americans filed for initial jobless benefits in the week ending August 1 on a seasonally adjusted basis, the Department of Labor reported on Thursday. That was down from the prior week's 1.4 million claims.

It was a reversal of a trend in the past two reports, in which initial claims increased. First-time claims peaked at 6.9 million in the last week of March and then declined for four months. But around mid-July, they reversed directions and rose again.

That's not a good look for a labor market that desperately needs to recover after millions of workers were displaced by the pandemic. But last week offered hope that claims could head lower once again.

Not adjusting for seasonal factors, just under 1 million people filed initial unemployment claims last week. Normally seasonal adjustments help smooth out the data, but the huge numbers during the pandemic have instead distorted it.

Rising Covid-19 infections across the country have stalled the reopening of the economy and have made it harder for people to return to work. In addition, money from government's paycheck protection program, which allowed companies to hire back workers, is running out.

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