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This topic explains how long term and short term capital gains/losses are determined based on the holding period of the investment and their applicable tax rates. We also studied how one can reduce LT ..

Here we study in detail the four heads of income for a trader/investor and their meaning and relevance. The rules for computation of tax under each head is clearly outlined. We also study the advanta ..

The first chapter aims to reassure the reader that taxation is not something to be feared and can actually be interesting when looked at from a traders’/investors’ perspective. ..

13.1 – The Curvature We now know for a fact that the Delta of an option is a variable, as it constantly changes its value relative to the change in the underlying. Let me repost the graph of the del ..

12.1 – The other side of the mountain How many of you remember your high school calculus? Does the word differentiation and integration ring a bell? The word ‘Derivatives’ meant something else t ..

11.1 – Add up the Deltas Here is an interesting characteristic of the Delta – The Deltas can be added up! Let me explain – we will go back to the Futures contract for a moment. We know for every ..

10.1 – Model Thinking The previous chapter gave you a sneak peek into the first option Greek – the Delta. Besides discussing the delta, there was another hidden agenda in the previous chapter – ..

9.1 – Overview Yesterday I watched the latest bollywood flick ‘Piku’. Quite nice I must say. After watching the movie I was casually pondering over what really made me like Piku – was ..

8.1 – Intrinsic Value The moneyness of an option contract is a classification method wherein each option (strike) gets classified as either – In the money (ITM), At the money (ATM), or Out of ..

7.1 – Remember these graphs Over the last few chapters, we have looked at two basic option type’s, i.e. the ‘Call Option’ and the ‘Put Option’. Further, we looked at four different variant ..