Repeat msg ::
Keep booking profit and deleveraging as mkt moves in your direction, few examples of money/position management
1) Book future and add In the money option
2) Book In the money option & buy Out of money
that way u can ride it while wont mind if sudden reversal comes

HDFC AMC :: This one can be bought in cash portfolio now and on decline towards 2800....SL 2700 tgt 3500-3800-4000 ......

#StockMarket #Investment #nifty50

I wont rely on Reliance any more for more rally.....

#trading #stocks #Nifty

Reliance 2774 to 2670....100 points gone from the big outperforming stock......can u expect better timing to catch reversal.....???!!
#trading #stocks #StockMarketindia #Nifty

Kotak Bank :: Consolidating around 200 DMA..... long set up between 1720-1740 with 1700 spot SL....

#StockMarket #BANKNIFTYFUTURE #trading

Kotak Bank :: Its been relatively strong bank recently....upside breakout possible as long as its above 1745 , so can buy now and on decline towards 1760 .....tgt can be 1900-1950 ...
#trading #stock #Niftybank

BHEL :: Result was not good but is bouncing from support level..... can try long between 55-60 with SL below 50 ....tgt 85-95

#stocks #nifty50 #StockMarketindia

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. What drives valuation of a company?
2. Why some companies are valued at high multiples while others aren't?
3. What you should be looking for while buying a business?

Lets dive right in.

Not so long ago, Maruti released an ad campaign - 'Kitna Deti Hai'? (What's the mileage?)

Here is one of the ad's from the

The ad was on point - Indians before buying a car or any vehicle obsess over the mileage the most among all the other specifications.

We as a society are very value conscious.

Nobody has to teach us to drive a good bargain.

The logic for obsessing over mileage also checks out.

If a vehicle gives good mileage then over time as owners of the vehicle you will end up spending less on it in fuel and other added costs.

This ability to gauge long term value before buying something is magically lost when we enter stock market.

Here too you should be asking your stocks - 'Kitna deta hai'?

This time instead of obsessing over mileage, you should be obsessing over cash flows.

What Are Cyclical Stocks?

Understanding HIGH & LOW VIX

VIX at 16: If you check today's IV behaviour, they were not spiking much even with decent delta move in BNF. The movement was subtle, giving some time to adjust. So someone having good adjustment mechanism can stay in the game longer.

1/

VIX at 20: The same delta move will be more fierce, coupled with rise in premiums. When premiums rise with movement, then the adjustment cost increases exponentially. The premiums can fall back at EOD, but the damage is done if caught in the spike.

2/

After talking to few traders, their backtest result was in favor of high VIX of 2020, rather than 2017-19. The key flaw in the backtest were the adjustments which are not easy to calculate. Combination of high theta & fixed SL during high VIX, the IV crush is cashed at EOD.

3/

Neutral option sellers who don't adjust & have fixed SL on a static straddle will not be able to benefit highly in low VIX. The straddle which moves away from ATM will increase no matter what. But if we keep on rolling our strikes, then we get good realisation of theta.

4/

I have made majority of my profits in option selling when VIX was at 13-15, mostly just relying on my adjustments. Since 2020 with high VIX, adjustments stopped working because of increase in the frequency of delta + IV spike combos & so had to shift to directional trading.

5/