What is Option Pain and how can it used in practice?
A fairly common usage, albeit controversial is the concept Option Pain. Before we get into the concept of Option Pain, let us look at the logic behind this concept of Option Pain. In most F&O markets, especially in India, th…More>>
How is beta hedging done and is it effective in practice?
Hedging basically means protection. When you buy a stock, there is a risk that the stock price could go down. That will result in losses; either actual or notional. You need to protect yourself from such losses and that is w…More>>
What are the risks of writing / selling a short strangle?
One of the popular advantages of using options is that you can create non-directional strategies. Normally, any position in the stock market is based on your view on the market which is either bullish or bearish. But what if…More>>