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Dear Pgupt,
Please read the thread OPEN INTEREST GAMES AND RULES FROM ALEX!! , created by radhika_nandlal, I think the thread will give more info.
Regards
Aru...
In reply to:
Put-Call Ratio Explained
Posted by :
pgupt
Dear vam_aru
Thanks for explaining Put-Call ratio.Is it possible to explain in the similar manner the interpretation of Open interest & its interpretation to gauge the sentiments of the market and specific scrips? 
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Dear vam_aru
Thanks for explaining Put-Call ratio.Is it possible to explain in the similar manner the interpretation of Open interest & its interpretation to gauge the sentiments of the market and specific scrips?...
In reply to:
Put-Call Ratio Explained
Posted by :
vam_aru
Put-Call Ratio Explained
Definition:
The Put-Call Ratio is the number of put options traded divided by the number of call options traded in a given period.
While typically the trading volume is used to compute the Put-Call Ratio, it is sometimes calculated using open interest volume or total Rupee value instead. Weekly or monthly figures can also be calculated and moving averages are often used to smooth out the short term daily figures.
How to interpret the put call ratio
The average value for the put-call ratio is not 1.00 due to the fact that equity options traders and investors almost always buy more calls than puts. Hence, the average ratio is often far less than 1.00 (usually around 0.70) for stock options.
When the ratio is close to 1.00 or greater, it indicates a bearish sentiment. The higher than average number indicates more puts being bought relative to calls. This means that more traders are betting against the underlying and hence the general outlook is bearish. Conversely, when the ratio is near 0.50 or lesser, it implies a bullish sentiment.
The put call ratio as a contrarian indicator
To the contrarian investor, the put call ratio can be used to determine when the investing crowd may be getting either too bullish or too bearish. A high put call ratio is a bullish sign as the it points to an over-bearish crowd - and vice versa.
Equity put call ratio vs. Index put call ratio
A popular strategy used by fund managers involves the buying of index put options to protect their portfolios. As a result, the put call ratio for index options is generally higher than that for equity options. Hence, for a better indicator of the sentiment of the speculative crowd, the equity put call ratio is used instead.
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INDIA-RELATED—
* India Aug 23 WPI inflation rate 12.34% vs 12.40% week ago (NW18)
* Govt source says falling trend in inflation likely to continue (NW18)
* India Jun 1-Sep 3 rainfall 715.7 mm, 3% below normal (NW18)
* Finance ministry says Daiichi-Ranbaxy deal referred to Cabinet (NW18)
* Floods destroy crops across 180,000 ha in Bihar (NW18)
* Govt OKs 17 FDI proposals worth 18.44 bln rupees (NW18)
* Fiat Group CEO says may supply engines for Jaguar, Land Rover cars (NW18)
* Tata Power to buy 11.4% in Australia\'s Geodynamics; cos to form JV (NW18)
* Ratan Tata to do \"everything possible\" to launch Nano as planned (NW18)
* Maruti Suzuki says margins under pressure but no plan to up prices (NW18)
* Govt yet to decide on extending suspension on 4 farm futures (NW18)
* HCL Tech in talks to raise up to $1 bln for acquisitions (NW18)
* Maharashtra extends stamp duty amnesty scheme until Oct 31 (NW18)
* RBI report says need careful look before opening up to foreign bks (NW18)
* Tatas looking to spin off international steel assets, including Corus (FT)
* Tamil Nadu chief minister threatens Marans\' Sun Group with legal action (IE)
* RBI warns against fictitious mails offering money (HT)
* British Airways plans tie-up with India carrier in franchise partnership (BS)
* Punjab govt seeks bids to set up 2,640 MW plant at Gidderbaha in Muktsar (BS)
* Balco residual stake headed for arbitration (BS)
* Shyam Telelink in dock over FDI (ET)
* Jaypee Group plans over 1,200-room hotel (ET)
* Big Bazaar to up food and grocery prices by 5-6% (various)
* BT to retain 10% in Tech Mahindra (ET)
* ONGC says no to OVL listing; funding in place for Imperial buy (FE)
* OVL eyes Canadian co for $1.5 bln (Mint)
* IIMs look to outsource CAT to global testing co (Mint)
FROM OVERSEAS--
* Bank of England leaves bank rate unchanged at 5% (NW18)
* ECB keeps refinancing rate unchanged at 4.25% (NW18)
* Unilever breaks with 80-year tradition of appointing insiders as CEO (FT)
* Hedging hits forex windfalls at Rolls-Royce (FT)
* Australia cuts rate by quarter-point (WSJ)
* OPEC invites Brazil to join group (BBC)
* Argentina nationalises airline Aerolineas Argentinas and its arm (BBC)
* Boeing workers decide to strike (BBC)
* Russia forced to shore up rouble post Georgia conflict (FT)
* Sony recalls 440,000 Vaio laptops due to wiring faults (BBC)
* Google tweaks licence agreement for its new browser Chrome (BBC)
* Telefonica to invest in 2 state Chinese telecom cos for bigger share (WSJ)
* Nestle\'s Polman to be Unilever CEO (ET)
...
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* APEEGO: Approved one-for-one bonus share issue. (NW18)
.
* DR. REDDY\'S LABORATORIES: To distribute Cosmederm Technologies products in
India. (NW18)
U.S.-based Antares Pharma in pact with company to develop an enhanced
dermatology drug. (NW18)
.
* GAIL INDIA: Gets shareholders\' OK to issue bonus shares in the ratio of
one-for-two. (var)
To double its Pata unit capacity to 800,000 tn a year. (NW18)
.
* GITANJALI GEMS: Will form a 74:26 joint venture with government-owned MMTC
to establish, acquire, develop, manage and maintain jewellery showrooms in the
country. (ET)
.
* HCL TECHNOLOGIES: May make a counter-bid for SAP implementer Axon,
after Infosys Technologies also bid to acquire the U.K.-based company.
(var)
.
* HINDUSTAN MOTORS: Plans to increase product prices on rising input costs.
(NW18)
.
* HINDUSTAN UNILEVER: Parent Unilver appoints Paul Polman as group chief
executive officer to succeed Patrick Cescau. Polman is currently executive
vice-president and zone director for Americas at Nestle.
.
* IDBI BANK: Is planning to sell its Pune-based wholly owned arm, IDBI
Homefinance. (ET)
.
* MOBILE TELE: Approves 10-for-one stock split. (NW18)
.
* MOSER BAER: Photovoltaic subsidiary raises 4.11 bln rupees from a
consortium of private equity investors, leading to a dilution of Moser Baer\'s
stake in the company by 6.5%. (Var)
.
* OIL AND NATURAL GAS: Arm ONGC Videsh is in talks to acquire Canada\'s
Tanganyika Oil Co for $1.2 bln-$1.5 bln (53.40-66.75 bln rupees). (Mint)
.
* PATEL ENGINEERING: Is close to acquiring a mid-sized coal mine in Indonesia
for 1 bln rupees. (ET)
.
* RANBAXY LABORATORIES: Finance Ministry says Daiichi-Ranbaxy deal referred
to Cabinet. (NW18)
Life Insurance Corp of India and General Insurance Corp of India to sell
entire holding in company to Daiichi Sankyo in open offer. (NW18)
.
* STERLITE INDUSTRIES: May enter into arbitration for purchase of the
residual 49% of government\'s stake in Bharat Aluminium Company. (BS)
.
* TATA MOTORS: West Bengal Governor has held preliminary talks with
representatives of ruling Left Front government to resolve Singur crisis.
(NW18)
Ratan Tata says pressure on Nano pricing due to high input cost; to do
\"everything possible\" to launch Nano as planned. (NW18)
Fiat Group head says will supply engines for Jaguar and Land Rover brands
if asked by Tata Motors. (NW18)
.
* TATA POWER: Along with Australia\'s Geodynamics is planning to jointly explore
geothermal power prospects globally. (NW18)
.
* TECH MAHINDRA: A clutch of private equity investors are interested in
acquiring UK-based British Telecom\'s stake in the company. (ET)
.
* TRANSPORT CORP: Eyes 20 bln rupees in revenue by 2010-end; to add 1 percentage
point to operating margin every year for three years. (NW18)
...
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MKT To Fall On Friday- hbjcapital dot com
Visit hbjcapital dot com
---------------------------
HBJ Capital Successfully Predicted Market Movement During Last 3 Sessions; Team Says, -Expect Market To Fall On Friday-.
HBJ Capital’s View for Friday and Next Week:-
If you look around & watch TV, listen to analysts, all are either expecting Indian Market to move up or even saying gaps up opening for friday. But at HBJ Capital, our 12 member srong dedicated research team is expecting Indian Stock Market to fall 1-2% on Friday, Why?
>>>>>From the bottom of 4200 last week, market has moved up 250 points in a matter of 3-4 trading sessions, no specific reason as such except fall in crude prices which is more a sentimental issues then real until crude falls below $100 or $85-90 range. Once again we would say too much too early gain, inspite of not good global clues. Market has mostly ignored bad news.
>>>>>If Inflation has come down a bit then at the same time we got stuck at NSG issue, so both are not going to affect market movement at least for time being.
>>>>>Global slowdown will dictate the market direction in near terms, today Nifty’s September futures commanded a premium of 10 points, indicating that players are creating long positions. But when market opens tomorrow, all these long positions are going to be closed mostly in the 2nd half, lead to further fall in the market. Indian Stock Market might open with say 1% down but it will further fall and may close at 2% down.
Tell me HBJ, What a trader should do on friday?
>>>>>For those holding no position in Nifty: SHORT Nifty if it opens 1% or less downside, it is expected to fall further, don\...
In reply to:
Asian markets trading weak
Posted by : MMB Messenger
Asian markets were trading weak. China's Shanghai Composite plunged 2.48% or 56.36 points at 2,221.04. Japan's Nikkei tumbled 2.54% or 319.05 points at 12,238.61. Hong Kong's Hang Seng slipped 2.96% or 602.86 points at 19,786.62. Taiwan's Taiwan Weighted fell 1.46% or 93.74 points at 6,318.89.
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Asian markets were trading weak. China's Shanghai Composite plunged 2.48% or 56.36 points at 2,221.04. Japan's Nikkei tumbled 2.54% or 319.05 points at 12,238.61. Hong Kong's Hang Seng slipped 2.96% or 602.86 points at 19,786.62. Taiwan's Taiwan Weighted fell 1.46% or 93.74 points at 6,318.89....
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Anil Ambani group\'s Reliance Mutual Fund, the country\'s largest fund house, today said it has achieved one million Systematic Investment Plans (SIPs) mark.
Reliance Mutual Fund, part of Anil Dhirubhai Ambani Group, offers SIPs for as low as Rs 100 a month. It has an investor base of over 69.5 lakh people
...
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Buying straddles is a great way to play earnings. Many a times, stock price gap up or down following the quarterly earnings report but often, the direction of the movement can be unpredictable. For instance, a sell off can occur even though the earnings report is good if investors had expected great results.
The strategy here is to buy the straddle two to three weeks ahead of earnings. Significant price movement is necessary for a straddle to make money and in the case of the earnings play, there are three events that can occur during this period which can create price movements sufficient enough to generate a profit.
Prior to the earnings, excitement abound and the underlying stock price may trade up or down ahead of the actual earnings due to increased speculation. Sometimes, price may move so much that you may be able to exit the position with a small profit without holding into earnings.
Immediately after the earnings annoucement, stock price typically gap up or down 5% to 10%, depending on the report. Movements of 10% to 20% are seldom but not uncommon. Rare is the case when stock price remains unchanged.
A third event, unlikely but not impossible, is the profit warning that may be issued a few weeks prior to the earnings report. Large downward movements are typical following such warnings and are usually big enough to allow for a profitable exit.
Unless you are very certain that the gap up or down after the report will be huge, never buy the straddle just one day before earnings as this is the time when the premiums of at-the-money options get bid up very high due to heightened anticipation. Do your homework and scout for companies announcing earnings two to three weeks in advance. Lookout for stocks displaying a history of gap movements during earnings by examining the historical price chart.
...
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Put-Call Ratio Explained
Definition:
The Put-Call Ratio is the number of put options traded divided by the number of call options traded in a given period.
While typically the trading volume is used to compute the Put-Call Ratio, it is sometimes calculated using open interest volume or total Rupee value instead. Weekly or monthly figures can also be calculated and moving averages are often used to smooth out the short term daily figures.
How to interpret the put call ratio
The average value for the put-call ratio is not 1.00 due to the fact that equity options traders and investors almost always buy more calls than puts. Hence, the average ratio is often far less than 1.00 (usually around 0.70) for stock options.
When the ratio is close to 1.00 or greater, it indicates a bearish sentiment. The higher than average number indicates more puts being bought relative to calls. This means that more traders are betting against the underlying and hence the general outlook is bearish. Conversely, when the ratio is near 0.50 or lesser, it implies a bullish sentiment.
The put call ratio as a contrarian indicator
To the contrarian investor, the put call ratio can be used to determine when the investing crowd may be getting either too bullish or too bearish. A high put call ratio is a bullish sign as the it points to an over-bearish crowd - and vice versa.
Equity put call ratio vs. Index put call ratio
A popular strategy used by fund managers involves the buying of index put options to protect their portfolios. As a result, the put call ratio for index options is generally higher than that for equity options. Hence, for a better indicator of the sentiment of the speculative crowd, the equity put call ratio is used instead.
...
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No one does a spell checks on these articles? How badly written this one is!...
In reply to:
Crude oil trading below USD 110/bbl
Posted by : MMB Messenger
Crude took a breather after recent gains in the market. There has some strength come back into commodities but the sentiments are still weak. Crude price is below USD 110/bbl even at this point in time.
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Crude took a breather after recent gains in the market. There has some strength come back into commodities but the sentiments are still weak. Crude price is below USD 110/bbl even at this point in time. ...
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Demand slowing down post olympic but sudden shock shouldnt come thats why commodity players still keeping bad news flow aside. Next whole year might be bearish for commodity especially for Crude, Gold, Food & steel also....
In reply to:
Crude prices to bounce back in Oct: Experts
Posted by : MMB Messenger
Ashok Mittal of Karvy Comtrade feels that the crude undertone is bearish. But he sees support at USD 100 per barrel levels. Kishore Narne, Vice-President of Anand Rathi Commodities expects crude to bounce in near-term on short covering. He sees double-digit figures for crude over the next quarter.
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Ashok Mittal of Karvy Comtrade feels that the crude undertone is bearish. But he sees support at USD 100 per barrel levels. Kishore Narne, Vice-President of Anand Rathi Commodities expects crude to bounce in near-term on short covering. He sees double-digit figures for crude over the next quarter. ...
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Companies scheduled to announce earnings for the quarter / year ended March 31, 2008 today are -- Advik Laboratories, Akanksha Finvest, Arunoday Mills, Aurionpro Solutions, Chandra Prabhu International, Chandrika Traders, Chartered Capital & Investment, Chartered Logistics, Country Condos, Dhanprayog Investments Company, Fem Care Pharma, Insutech India, IOL Netcom, Jhunjhunwala Vanaspati, Krishna Filaments, Lee & Nee Softwares Exports, Mahan Industries, Parenteral Drugs India, Rajendra Electrical Industries, Remi Sales & Engineering, Sacheta Metals, Sarla Gems, Sarthak Global, Sarthak Industries, Scenario Media....
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Jindal Poly Films has recommended a dividend of 20 per cent on equity shares. The company shares were down 0.08 per cent to Rs 260 on BSE...
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