tag:blogger.com,1999:blog-7004453.post5772450732910713819..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: Comments and reply to my options postRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-7004453.post-5491033869523173422009-11-22T07:32:04.316+05:302009-11-22T07:32:04.316+05:30Hi raj
answer to first question - yes traders do u...Hi raj<br />answer to first question - yes traders do use options to trade ..its a leveraged way of doing it. however its not for the novice and one better know what you are doing, otherwise be ready for a very expensive lesson.<br /><br />option pricing is based on short term expectations such as volatiltiy, probability of the stock touching a certain price etc. you will make money if you expect it to be different from what the market thinks<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-45617236086946592952009-11-22T07:29:22.825+05:302009-11-22T07:29:22.825+05:30Hi doctor stock
that is shorting ..i think beginne...Hi doctor stock<br />that is shorting ..i think beginners should best stay away from it<br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-14017605760766499912009-11-18T21:29:40.326+05:302009-11-18T21:29:40.326+05:30Hi Rohit
As I understand you are using derivatives...Hi Rohit<br />As I understand you are using derivatives as hedging. Can we use or study derivatives market to make short term equity decisions (max 3 months trading)? In other words, does derivatives market influences OR indicates its underlying asset (say equity) class movement? Is there any theoretical or practical connection?<br /><br />Thanks<br />-RajAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-6071639733190627472009-11-18T01:59:25.938+05:302009-11-18T01:59:25.938+05:30Sometimes, using inverse stocks/etfs work just as ...Sometimes, using inverse stocks/etfs work just as well for a beginning investor.Doctor Stockhttps://www.blogger.com/profile/05091536534638746643noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-6825569539250673612009-11-17T22:10:51.756+05:302009-11-17T22:10:51.756+05:30Hi rauf
the how and why should one should do it fo...Hi rauf<br />the how and why should one should do it for a long term portfolio is a bigger i am trying to answer for myself<br /><br />hi anirudha<br />as i said, for a long term investor options will not make sense unless one plans to sell in the short term. here again it may make sense to just sell and not get too clever with options. so options is still an area i am trying figure as part of my portfolio.<br /><br />options work well as disaster protection ...end of 2008 if you thought icici was going down the tube and had deposits, then puts would have helpedRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-18018764399530644992009-11-17T09:29:24.242+05:302009-11-17T09:29:24.242+05:30Hi Rohit,
i also tried with options while ago. I r...Hi Rohit,<br />i also tried with options while ago. I realized that, i would never sell my portfolio. So even if it is hedged by options, it's waste of money. If market falls you would earn money through options but that time you will not sell your entire portfolio. Option Profits would be offset against your virtual loss. Same thing with advances. The gain in the portfolio is offset with the option premium you pay. which would expire worthless.<br />I found it good tool to earn money in volatile market for traders.<br /><br />Kind regards<br />AniruddhaAniruddhahttps://www.blogger.com/profile/11483611948764893946noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-55883784995271282062009-11-17T06:39:46.068+05:302009-11-17T06:39:46.068+05:30I agree that options can be used within a value in...I agree that options can be used within a value investing universe, even if their use doesn't fit neatly into the Graham world. Options and warrants have played a part in Buffett's investing strategies.<br /><br />I am like you, attempting to figure out how to use options as a "hedge." The "How" is the tricky part. <br /><br />Keep up the good work with your blog.Ra'ufhttp://chromainvesting.comnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-34640287361356855182009-11-16T23:16:12.570+05:302009-11-16T23:16:12.570+05:30my response to the following comment from anon
Hi...my response to the following comment from anon<br /><br />Hi Rohit,<br /><br />Out of all the suggestions about sharing your knowledge , the one about about taking classes is by far the best.The reason here is the criteria on which you base your decision- you can either employ your expertise to earn money for people or to help people learn how to make money...the second option is obviously better as your skill will outlive you and you would have still earned a lot of money (I believe prof bakshi asked for 2500$ per hr for a proposed class in singapore and got it though he chose not to accept).If you chose to teach i commit to register for the class:) thks for the blog though .I'm a homemaker with very sketchy knowledge of finance but a keen desire to learn as I hv realised that the market can help me gain financial independence without leaving the comfort of my home.I'm sure there are many others like me who would benefit enormously should successful retail investors like you decide to teach.How abt tying up with some institute and providing distance learning via video conferencing frm the comfort of your home? Hughesnet provides distance learning courses in financial mgt via satellite but people teaching these courses havn't successfully applied that knowledge in the markets so i have not found it worth my while to take the same.<br /><br /><br />my response - this blog is an attempt to help others learn with me. however i agree that this blog really does not start with the basics and assumes a certain level of financial literacy.<br /><br />the reason for that due to time limitation - i run this blog for free and cannot devote more than a few hours a week. the only way i could provide some kind of coaching would be to develop some lectures and material for a fee as it would involve time and effort from my end.<br /><br />i will post to that effect to see the level of interest in a paid coaching program. if i find sufficient interest, i may decide to go for it<br /><br />regards<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-34436706379309654432009-11-15T06:46:36.583+05:302009-11-15T06:46:36.583+05:30hi prashant
i can see 1 yr contracts, but could no...hi prashant<br />i can see 1 yr contracts, but could not figure how to buy them.<br /><br />hi venkat<br />i have recieved and replied to your email. can you let me know if you have received my response ?<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-11733493457867188702009-11-14T15:48:01.656+05:302009-11-14T15:48:01.656+05:30Hi Rohit,
I mailed you the receipt from CRY for t...Hi Rohit,<br /><br />I mailed you the receipt from CRY for the donation. have you received it? <br /><br />regards<br />venkatAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-54153998999465574982009-11-14T07:41:26.319+05:302009-11-14T07:41:26.319+05:30Hi Rohit - Nice post, as always.
Long options are...Hi Rohit - Nice post, as always.<br /><br />Long options are not available on NSE / BSE. Longest duration is 3 months. Where you can get 1 year option contracts?<br /><br />I agree with you that these instruments can be better used in arbitrage positions, however not with 3 months contracts and only few stocks to choose from (179?). <br /><br />Thanks<br />PrashantAnonymousnoreply@blogger.com