Blog


  • The Put Option selling

    Karthik Rangappa on April 28, 2015

    6.1 – Building the case Previously we understood that, an option seller and the buyer are like two sides of the same coin. They have a diametrically opposite view on markets. Going by this, if the P ..

  • The Put Option Buying

    Karthik Rangappa on April 20, 2015

    5.1 – Getting the orientation right I hope by now you are through with the practicalities of a Call option from both the buyers and sellers perspective. If you are indeed familiar with the call opti ..

  • Selling/Writing a Call Option

    Karthik Rangappa on April 7, 2015

    4.1 – Two sides of the same coin Do you remember the 1975 Bollywood super hit flick ‘Deewaar’, which attained a cult status for the incredibly famous ‘Mere paas maa hai’ dialogue ☺? The mo ..

  • Buying a Call Option

    Karthik Rangappa on March 27, 2015

    3.1 – Buying call option In the previous chapters we looked at the basic structure of a call option and understood the broad context under which it makes sense to buy a call option. In this chapter, ..

  • Basic Option Jargons

    Karthik Rangappa on March 23, 2015

    2.1– Decoding the basic jargons In the previous chapter, we understood the basic call option structure. The idea of the previous chapter was to capture a few essential ‘Call Option’ concepts suc ..

  • Call Option Basics

    Karthik Rangappa on March 18, 2015

    1.1– Breaking the Ice As with any of the previous modules in Varsity, we will again make the same old assumption that you are new to options and therefore know nothing about options. For this reason ..

  • Open Interest

    Karthik Rangappa on March 10, 2015

    This chapter explores in details the concept of open interest and its relevance to futures trading. The chapter also includes a guide on how to interpret the change in open interest with respect to ch ..

  • Hedging with Futures

    Karthik Rangappa on March 9, 2015

    This chapter gives a step by step instruction on how to hedge a portfolio of stocks with the help of a futures instrument. The chapter also has a detailed description on beta and method to calculate t ..

  • The Futures Pricing

    Karthik Rangappa on February 27, 2015

    This chapter is a primer on how future contracts are priced with respect to the spot prices. The chapter also discusses the concept of premium, discount, and the convergence of futures and spot price ..

  • The Nifty Futures

    Karthik Rangappa on February 18, 2015

    This chapter is a primer on trading Nifty Futures. All that you need to know about Nifty futures is discussed in this chapter including the impact cost, liquidity, and benefits of trading Nifty future ..