The Nifty’s narrow, range-bound moves last week favoured neither out-of-the-money call option buyers nor put option buyers. Most probably, straddle sellers had gone home happy.
Let’s look at what happened in the last seven days. US bond yields, which are critical determinants of US interest rate direction, went up further, which is a negative for the market.
After almost a year-and-a-half, the equity market witnessed what can be called a correction.
Last week really tested the guts of derivative traders. The volatile week rewarded only traders who had the courage to bet against the prevailing market sentiment.
A trouble with the equity market is that people always look for reasons behind the market moves.
From the way Nifty options, both call and put, carried time value before the budget day, it was clear that massive hedging was going on.
The Budget presentation is a super-event for the stock market. Or so we thought. It is also that time of the year when fortunes in individual stocks are made or busted, for a fortnight, at least.
Equity investors are in the constant quest for a sector that will fetch them extraordinary returns.
Unlike in developed countries, where retail investors make equity investments largely through qualified professionals or institutions, in India, most investors prefer to take things in their hand a
Until a fortnight back, the market almost belonged to the buyers of call options. However, the scene has changed last week.