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Difference Between Stock Trading Versus Stock Options Trading With Market Updates

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Market were in a panic as bloodbath seen in the indices; Sensex below 28000:

Markets have tumbled down since the start of the session and sentiments were further hit after the Chinese market breakdown of approx 8%, which was recorded downfall after the year 2007 and the indices finally settled with loss of around 2%. On daily charts, it closed below 100 day SMA of    8426 which can be a weak signal for nifty dragging towards 8300 while resistance remains in the range of 8400-8430.

HEADLINES FOR THE DAY:

  •  Markets worried over reports that Serbia can review Participatory Notes norms and Govt’s move to restrain black money.
  • A weak China’s manufacturing sector hit Metal Index (top loser) followed by Banking, Realty and Auto.
  • Historic dropdown in the Shanghai Composite Index of over 8% and fell towards the lows of 2007.
  • Siemens bagged new order for Gas Insulated Switchgear worth Rs 67 Cr.
  • Govt to sell 5% stake worth Rs 1600 crore in Power Finance Corporation (PFC) via auction on exchanges. (Base price Rs 254/share).

KEY STOCKS FOR THE DAY:

  • JMT Auto traded higher about 5% on acquiring Singapore based SPV, German based REGE.
  • Rajesh Exports hits 52 week high on acquiring world’s largest Gold refining company – Valcambi.
  • Indusind Bank acquired Royal Bank Of Scotland’s diamond & Jewellery financing businesses in India.
  • Cox & Kings own MENINGER Hotels and signed contract for a new hotel in Rome.
  • Shares Spice Jet surges after clarification from the Company on stake sale reports between the airlines and Qatar Airways.
  • Take Solutions rose on its set up of Intelnet, a new US based subsidiary for Life Sciences.

RESULTS BLOG:

  • Geometric Ltd skyrocketed on its consolidated net profit @ Rs 191.27mn v/s Rs 32.92 mn in previous quarter.
  • Relaxo Footwears jumped almost 5% on its strong earnings of 56% growth in Q1 net profit at Rs 36 cr.
  • Bharat Electronics Ltd (BEL) posted strong earnings as its Q1 standalone net profit is Rs 60 Cr v/s Rs 25.6 Cr (YoY).
  • Pfizer net sales rise to Rs 479 cr while net profit showed a 43% increase to Rs 53.83 cr compared to first quarter.
  • Kolte Patil Q1 PAT stood @ Rs 14.5cr while Revenues are up by 11.9%.
  • Shares of Century Enka climbed higher as its net profit jumped 57% at Rs 13 cr on YoY basis.
  • Havells India’s recorded its net profit flat @ Rs 107 cr while Net sales declined marginally by 0.7% as compared to the previous quarter.
  • Tech Mahindra up on its Q1 net profit recorded at Rs 817 cr and total income at Rs 64304 mn.
  • Pokarna, India’s leading granite company expanded its revenues by 55%, while its EBITDA increased to Rs 30 cr (131%).
  • Persistent Systems Q1 net profit fell 2.3% to Rs 67.2 cr as compared to last quarter, but the stock gained 4% as it has beaten the market expectations.

CALLS FOR NEXT TRADING SESSION:

  • Kaveri Seeds (KSCL) EQ had plunged in the last session towards its strong support and hence selling pressure may further continue below 714 for targets of 707/700/693 sl 722.
  • Jetairways  EQ is finding resistance on higher sides and is consolidating around the near term support of 315.20 since last few sessions. Sell below 315.20 targets 312/308.90/305.80 sl 318.50.

NEWS TO WATCH OUT:

  • Watch out for the Quarterly numbers Bank India, Blue star, Dish TV, Guj alkali, HDFC, IDBI Bank, Maruti, PNB, Syndicate Bank, Tata Comm, Thermax, Union Bank on Tuesday i.e. on 28th July 2015.

Difference between Stock Trading versus Stock Options Trading

More complicated securities than the stocks, which they are associated with them; on the other hand options can be processed in a broad range of strategies, as of conventional to high possibility. They can also be modified to meet prospects that go outside an easy ‘the stock will go positive or ‘the stock will go negative’. Previously, you go away from learning options terms like as Free Stock Tips; you need to expand a thorough perception of threat to trade options effectively. That also defines understanding the feature that changes an option’s price.

Options Employed for Directional Trading

When various stock traders begin by using options, it is frequently to buy a call or a set for directional trading, which stock traders perform when they are sure that a stock price will go in an exacting direction and they start an option position to get advantage of the predictable movement. These stock traders may choose to attempt trading in options Instead of the stock itself because of the limit wise risk, higher probable reward and minor amount of capital needed to manage the similar number of shares of stock.

If your viewpoint is upward condition (bullish situation), purchasing a call option make the chance to split in the benefits of a stock with no having to risk more than a part of its market rate. If you are in the situation of the bearish (expect a downward price fluctuation), purchasing a put lets you obtain advantage of a drop in the stock price movement without the big margin required to small a stock.

 Market Direction

There are different types of option strategy that can be built, but the victory of any strategy depends on the trader’s consideration of the two types of options: the put and the call option and own Option Trading Tips. Furthermore, obtain a full profit of options needs modification how you imagine. Those option stock investors who still consider solely in the form of market direction can understand the flexibility and influence options present, but these stock investors are missing some of the other chance that options offer.

Moreover, shifting increase or decrease, stocks can shift to one side to another or trend only diffidently upper or lower for an extended time period. They can also create a considerable shift up or down in price value, then opposite direction and end up reverse where they initiated. These types of price fluctuation make problem for stock traders, but provide option traders the exclusive and special opportunity to build money still if the stock turns to nowhere. Calendar spreads, strangles, butterflies and straddles are some of the important strategies planned to return from those types of condition.

Density of Option Pricing

Stock option investors have to study to consider another way because of the extra variables that influence an option’s price value and the producing complexity of selecting the right planning with right tips such as Nifty Futures Tips, Forex Tips and Stock Tips. Once a stock trader turns to good at predicting the future shift of a stock’s price value, he or she can shape it is a simple change from stocks to options – not subsequently. In the place of options you contain three shifting elements that influence an option’s price value: stock price, time and volatility. Fluctuation in any one of these three elements will influence the charge of your options.

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