Content

Content (57)

Friday, 27 March 2015 20:36

Currency Risk Management

Written by
  • We will design hedge policy for you. This will include your inventory cycle level risk management.
  • We will back test our policies and will implement it for future basis. We will try to make sure that within smallest variance your goals for import export are achieved.
  • You will open futures account with us. We will manage your exposures on real time basis. You will be getting MIS reports as per your choice. You will have flexibility to book exposures with us.
  • Special Reports: MIS reports will be sent to you automatically and will contain all details you may want to see.
  • Opportunity Cost
  • MTM
  • Chart of your strategy performance Vs Market rate Vs Our Advice.
  • Automatic Alerts: You will be able to receive auto alerts from our desk.
 
Friday, 27 March 2015 20:33

Stock Options

Written by

Introduction:

Options are financial instruments that can provide you, the individual investor, with the flexibility you need in almost any investment situation you might encounter. Options give you options. You're not just limited to buying, selling or staying out of the market. With options, you can tailor your position to your own situation and stock market outlook. Consider the following potential benefits of options:

  • You can protect stock holdings from a decline in market price
  • You can increase income against current stock holdings
  • You can prepare to buy stock at a lower price
  • You can position yourself for a big market move even when you don't know which way prices will move
  • You can benefit from a stock prices rise or fall without incurring the cost of buying or selling the stock outright A stock option is a contract which conveys to its holder the right, but not the

obligation, to buy or sell shares of the underlying security at a specified price on or before a given date. After this given date, the option ceases to exist. The seller of an option is, in turn, obligated to sell (or buy) the shares to (or from) the buyer of the option at the specified price upon the buyer's request.

Acknowledgement: We are thankful to Chicago Board of exchange for making this material available for public use free of cost. The material used here is for educational purpose and to widen the awareness of options. You can also find this material at http://www.pancaps.com/learning-center

To read further please visit:https://www.cboe.com/LearnCenter/pdf/understanding.pdf

 

Friday, 27 March 2015 20:31

Option Training

Written by

INTRODUCTION TO OPTIONS

An  option is a contract written by a seller that conveys to the buyer the right but not the obligation to buy (in the case of a call option) or to sell (in the case of a put option)a particular asset, at a particular price (Strike price/ Exercise price) in future. In return for granting the option, the seller collects a payment (the premium) from the buyer. Exchange-traded options form an important class of options which have standardized contract features and trade on public exchanges, facilitating trading among large number of investors. They provide settlement guarantee by the Clearing Corporation thereby reducing counterparty risk. Options can be used for hedging, taking a view on the future direction of the market, for arbitrage or for implementing strategies which can help in generating income for investors under various market conditions.

OPTION TERMINOLOGY

  • Index options:
    These options have the index as the underlying. In India, they have a European style settlement. Eg. Nifty options, Mini Nifty options etc.
  • Stock options:
    Stock options are options on individual stocks. A stock option contract gives the holder the right to buy or sell the underlying shares at the specified price.They have an American style settlement.
  • Buyer of an option:
    The buyer of an opti on is the one who by paying the option premium  buys the
    right but not the obligation to exercise his option on the seller/writer.
  • Writer / seller of an option:
    The writer/seller of a call/put option is the one who receives the option premium and
    is thereby obliged to sell/buy the asset if the buyer exercises on him.
  • Call option:
    A call option gives the holder the right but not the obligation to buy an asset by a certain
    date for a certain price.
    --
    Put option:
    A put option gives the holder the right but not the obligation to sell an asset by
    a certain date for a certain price.
  • Option price/premium:
    Option price is the price which the option buyer pays to the option seller. It
    is also referred to as the option premium.
  • Expiration date:
    The date specified in the options contract is known as the expiration
    date, the exercise date, the strike date or the maturity.
  • Strike price:
    The price specified in the options contract is known as the strike price or the exercise
    price.
  • American options:
    American options are options that can be exercised at any time up to the
    expiration date.
  • European options:
    European options are options that can be exercised only on the expiration date
    itself.
  • In-the-money option: An in-the-money (ITM) option is an option that would lead to a positive cash flow to the holder if it were exercised immediately. A call option on the index is said to be in-the-money when the current index stands at a level higher than the strike price (i.e. spot price > strike price). If the index is much higher than the strike price, the call is said to be deep ITM. In the case of a put, the put is ITM if the index is below the strike price.
  • At-the-money option: An at-the-money (ATM) option is an option that would lead to zero cash flow if it were exercised immediately. An option on the index is at-the-money when the current index equals the strike price (i.e. spot price = strike price).
  • Out-of-the-money option: An out-of-the-money (OTM) option is an option that would lead to a negative cash flow if it were exercised immediately. A call option on the index is out-of-the-money when the current index stands at a level which is less than the strike price (i.e. spot price < strike price). If the index is much lower than the strike price, the call is said to be deep OTM. In the case of a put, the put is OTM if the index is above the strike price.
  • Intrinsic value of an option: The option premium can be broken down into two components -intrinsic value and time value. The intrinsic value of a call is the amount the option is ITM, if it is ITM. If the call is OTM, its intrinsic value is zero. Putting it another way, the intrinsic value of a call is Max[0, (StK)] which means the intrinsic
    value of a call is the greater of 0 or (StK). Similarly, the intrinsic value of a put is Max[0, K St],i.e. the greater of 0 or (K S). K is the strike price and St is the spot price.
  • Time value of an option: The time value of an option is the difference between its premium and its intrinsic value. Both calls and puts have time value. An option that is OTM or ATM has only time value. Usually, the maximum time value exists when the option is ATM. The longer the time to expiration, the greater is an option's time value, all else equal. At expiration, an option should have no time value.

Acknowledgement: We are thankful to NSE India for making this material available for public use free of cost. The material used here is for educational purpose and to widen the awareness of options. You can also find this material at http://www.pancaps.com/learning-center

Read more on: http://www.nseindia.com/content/ncfm/sm_otsm.pdf

STRATEGIES: http://www.pancaps.com/learning-center

 

Friday, 27 March 2015 20:29

Option Trade Ideas

Written by

Trade ideas
We provide trade ideas on Currency and Equity options based on Fundamental and Technical analysis. We also provide btst/stbt calls after properly analyzing market condition. Take the advantage of assured movements in Currency and Equity market by joining us. Trade safely with clear market understanding and best knowledge we provide. We prepare strategies evaluating your risk taking capability and maximize your returns.

Currency:
Currency movements depend on various micro as well as macro fundamentals. We provide currency option strategies after studying the possible impact of these factors on the currency market.

Equity:
We suggest equity option strategies based on market volatility, fundamental and technical studies. Join the equity pack and profit in the better return providing scripts.

 
Friday, 27 March 2015 19:27

DISCLAIMER

Written by

Due to the number of sources from which the Content is obtained, there may be delays, inaccuracies or deletions in such Web Site Content, Advice, and Message.The content/recommendations/comments/messages are provided AS IS, without any warranties. Pan Capital Services Ltd. and its directors, employees and associates do not warrant the accuracy, completeness, timeliness, correctness, merchantability ,title or fitness for a specific purpose of the content/recommendations/comments/messages available through the website, or the website itself, and Pan Capital hereby disclaims any such express or implied warranties.

Neither Pan Capital Services Ltd. nor any of its directors, employees, and associates will be liable to anyone for any loss or injury. In no event will Pan Capital Services Ltd.be liable to you or anyone else for any action/decision made by you in belief on such content/recommendations/comments/messages.

We express our courtesy to freedigitalphotos.net for providing images we require.

 
Friday, 27 March 2015 19:24

Economic Calendar

Written by

 Econimic Calendar 4-10Dec Download PDF

 

Friday, 27 March 2015 19:23

World Interest Rate

Written by

 

World Interest Rate Chart
Name Of Country Current Interest Rate Next Meeting
G10
US 1.25 2017/07/26 18:00:00
Euro 0 2017/07/20 18:15:00
Japan -0.1 2017/07/20 02:00.00
UK 0.25 2017/08/03 11:00:00
Canada 0.5 2017/07/12 15:00:00
Australia 1.5 2017/07/04 04:30:00
New Zealand 1.75 2017/07/09 21:00:00
Switzerland 0 2014/12/11 14:00:00
Norway 1.5 2014/10/23 13:30:00
Sweden 1.25 2014/10/28 14:00:00
Asia
China 4.35  
Hong Kong 0.5  
India 6.25 2017/08/02 14.30.00
Indonesia 7.5 2017/07/20
Malaysia 3 2017/07/13
Philippines 3 2017/08/10
South Korea 1.25 2017/07/13
Taiwan 1.375 2017/09/29
Thailand 1.5 2017/08/16
Europe & Africa
Czech Republic 0.05 2017/08/03
Hungary 0.9 2017/07/18
Iceland 4.5 2017/08/23
Poland 1.5 2017/07/05
Russia 9 2017/07/28
Turkey 8 2017/07/27
South Africa 7 2017/07/20
Latin America
Brazil 10.25 2017/07/26
Chile 2.5 2017/07/13
Colomabia 5.75 2017/07/28
Mexico 7 2017/07/06
Colombia 5.75 2017/07/28

 

Friday, 27 March 2015 19:21

Fundamental Report for Commodity

Written by

13/01/14 Morning Report:

 
Friday, 27 March 2015 19:17

Trading strategy

Written by
Friday, 27 March 2015 19:00

India Central Banks Talks

Written by
Page 3 of 5