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Impact of events (Brexit) & Interest Rate Parity
Karthik Rangappa on June 28, 2016
3.1 – Brexit, the event extraordinaire! I originally planned to dedicate this entire chapter to the USD INR pair, which as you may know is the largest traded currency contract in India. But then, th ..
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Reference Rates & Impact of events
Karthik Rangappa on June 21, 2016
2.1 – Dual View Think about a stock, Infosys for example, when you buy or sell Infosys – your view on the stock is straightforward – you are either bullish or bearish on Infosys. Therefore, you ..
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Currency Basics
Karthik Rangappa on June 7, 2016
1.1 – Module Orientation At the onset, let me give you a quick orientation so that you can set your expectations for this module. The focus of this module will be on three main topics – Curren ..
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Max Pain & PCR Ratio
Karthik Rangappa on May 16, 2016
13.1 – My experience with Option Pain theory In the never ending list of controversial market theories, the theory of ‘Option Pain’ certainly finds a spot. Option Pain, or sometimes referred to ..
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The Long & Short Strangle
Karthik Rangappa on April 29, 2016
12.1 – Background If you have understood the straddle, then understanding the ‘Strangle’ is quite straightforward. For all practical purposes, the thought process behind the straddle and strangl ..
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The Short Straddle
Karthik Rangappa on April 14, 2016
11.1 – Context In the previous chapter we understood that for the long straddle to be profitable, we need a set of things to work in our favor, reposting the same for your quick reference – The vo ..
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The Long Straddle
Karthik Rangappa on March 24, 2016
10.1 – The directional dilemma How many times have you been in a situation wherein you take a trade after much conviction, either long or short and right after you initiate the trade the market move ..
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Put Ratio Back spread
Karthik Rangappa on March 11, 2016
9.1 – Background We discussed the “Call Ratio Back spread” strategy extensively in chapter 4 of this module. The Put ratio back spread is similar except that the trader invokes this when he is b ..
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Other indicators
Karthik Rangappa on February 25, 2016
Average Directional Index (ADX) About: The Average Directional Index (ADX), Minus Directional Indicator (-DI) and Directional Indicator (+DI) represent a group of directional movement indicators that ..
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Bear Call Spread
Karthik Rangappa on February 24, 2016
8.1 – Choosing Calls over Puts Similar to the Bear Put Spread, the Bear Call Spread is a two leg option strategy invoked when the view on the market is ‘moderately bearish’. The Bear Call Spread ..
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