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Niranjan Ch

Niranjan Ch

City: CHENNAI

Joining Date: 04 Aug , 2010
Last Login: 12:37 AM - 06 Jun , 2019
IP Address of Last Login - 60.243.73.xxx
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Reply for: Intraday calls

Niranjan Ch at 01:32 PM - Jun 16, 2017 ( )

Now cmp@ 3550

New Thread: Intraday calls

Niranjan Ch at 01:28 PM - Jun 16, 2017 ( )

Short Britania around 3549-3553, tgt-3530,  3520,3510, SL-3565

Reply for: Intraday call for today

Niranjan Ch at 02:22 PM - Jun 02, 2017 ( )

again back to 23912, safe traders can book for target

Reply for: Intraday call for today

Niranjan Ch at 01:23 PM - Jun 02, 2017 ( )

so high made 23912, now cmp @ 23888

Reply for: Intraday call for today

Niranjan Ch at 01:08 PM - Jun 02, 2017 ( )

u got plenty of time to get, Risk & reward is yours Cool

Reply for: Intraday call for today

Niranjan Ch at 01:07 PM - Jun 02, 2017 ( )

cmp 23859 now

New Thread: Intraday call for today

Niranjan Ch at 01:06 PM - Jun 02, 2017 ( )

Buy Bosch 23850-60, tgt-23975,24050,24180, SL-23700

Reply for: Buy Titan Inraday

Niranjan Ch at 08:37 PM - May 31, 2017 ( )

Those who traded could have made profit of  7500 per lot  Smile

Reply for: Buy Titan Inraday

Niranjan Ch at 08:22 PM - May 31, 2017 ( )

closing 474.9  Cool

Reply for: Buy Titan Inraday

Niranjan Ch at 08:21 PM - May 31, 2017 ( )

Target hit,high 480

Reply for: Buy Titan Inraday

Niranjan Ch at 02:22 PM - May 31, 2017 ( )

Now 472.5 , safe traders can book profit here 

Reply for: Buy Titan Inraday

Niranjan Ch at 02:21 PM - May 31, 2017 ( )

High so far  473.5

Cool

New Thread: Buy Titan Inraday

Niranjan Ch at 12:42 PM - May 31, 2017 ( )

Buy Titan 469-70, Target 475, SL 467.5

New Thread: Costless Collar (Zero-Cost Collar)

Niranjan Ch at 12:41 AM - May 17, 2017 ( )

Costless Collar (Zero-Cost Collar)

 

The costless collar, or zero-cost collar,  is established by buying a protective put while writing an out-of-the-money covered call with a strike price at which the premium received is equal to the premium of the protective put purchased.
Costless Collar Construction
Long 100 Shares
Sell 1 OTM LEAPS Call
Buy 1 ATM LEAPS Put

Costless collars can be established to fully protect existing long stock positions with little or no cost since the premium paid for the protective puts is offset by the premiums received for writing the covered calls.

Depending on the volatility of the underlying, the call strike can range from 30% to 70% out of money, enabling the writer of the call to still enjoy a limited profit should the stock price head north. This strategy is typically executed using LEAPS® options as the striking price of the call sold can be rather high in relation to the price of the underlying stock.

Costless Collar Payoff Diagram
Graph showing the expected profit or loss for the costless collar option strategy in relation to the market price of the underlying security on option expiration date.
 

Limited Profit Potential

Profit is limited by the sale of the LEAPS® call. Maximum profit is attained when the price of the underlying asset rallies above or equal to the strike price of the short call.

The formula for calculating maximum profit is given below:

  • Max Profit = Strike Price of Short Call - Purchase Price of Underlying - Commissions Paid
  • Max Profit Achieved When Price of Underlying >= Strike Price of Short Call

Example

Suppose the stock XYZ is currently trading at $50 in June '06. An options trader holding on to 100 shares of XYZ wishes to protect his shares should the stock price take a dive. At the same time, he wants to hang on to the shares as he feels that they will appreciate in the next 6 to 12 months. He setups a costless collar by writing a one year JUL '07 60 LEAPS call for $5 while simultaneously using the proceeds from the call sale to buy a one year JUL '07 50 LEAPS put for $5.

If the stock price rally to $70 at expiration date, his maximum profit is capped as he is obliged to sell his shares at the strike price of $60. At 100 shares, his profit is $1000.

On the other hand, should the stock price plunge to $40 instead, his loss is zero since the protective put allows him to still sell his shares at $50.

However, should the stock price remain unchanged at $50, while his net loss is still zero, he would have 'lost' one year's worth of premiums of $500 that would have been collected if not for the protective put purchase.

Note: While we have covered the use of this strategy with reference to stock options, the costless collar is equally applicable using ETF options, index options as well as options on futures.

Commissions

For ease of understanding, the calculations depicted in the above examples did not take into account commission charges as they are relatively small amounts (typically around $10 to $20) and varies across option brokerages.

However, for active traders, commissions can eat up a sizable portion of their profits in the long run. If you trade options actively, it is wise to look for a low commissions broker. Traders who trade large number of contracts in each trade should check out OptionsHouse.com as they offer a low fee of only $0.15 per contract (+$4.95 per trade).

Summary

By setting up the costless collar, a long term stockholder forgoes any profit should the stock price appreciates beyond the striking price of the call written. In return, however, maximum downside protection is assured. As such, it is a good options strategy to use especially for retirement accounts where capital preservation is paramount.

Many senior executives at publicly traded companies who have large positions in their company's stock utilize costless collars as a way to protect their personal wealth. By using the zero-cost collar strategy, an executive can insure the value of his/her stock for years without having to pay high premiums for the insurance of the put.

 

 

Source  :  http://www.theoptionsguide.com/costless-collar.aspx

Reply for: Buddhists Avoid Attachment?

Niranjan Ch at 11:14 PM - May 16, 2017 ( )

  1. Identify why you believe that you have an attachment problem. Were you once a strong adherent to a belief or, faith that you have since recanted? Do you still seek out a person who has either abandoned or stopped caring about you? Are there things in your life that you have allowed to define you? Or have you suffered a great personal tragedy or a loss?
     
  2. Avoid forming unhealthy attachments. It is often best to take adopting new beliefs and friendships slowly. Do not waste all of your energy by throwing all of your emotions into a single person or new creed; investigate slowly to avoid disappointment.
     
  3. Learn how to deal with certain attachment problems. Having attachment problems can hamper your progress in life. These need to be dealt with to ensure that renewal can occur and you can continue to grow. The following are some of the more common attachments that hold people back:
    • Changed beliefs. Maybe at one point in your life you championed a cause or considered yourself an adherent of something that you now think on with displeasure or disdain. Previously held beliefs are just that; previously held. You should be focused on ensuring that your current beliefs are morally justifiable instead of expending wasted energy worrying about what you previously thought. If your old beliefs were especially hateful, you should attempt to redeem yourself by helping those that you hurt.
       
    • Relationships with uncaring or toxic individuals. You should let them go. Realize that all of the feelings of mutual friendship or even love that you felt for this person were founded on shaky ground. This does not mean that you never had good times with this person, but it does mean that you should leave the entire situation alone until the other person realizes his or her wrongdoing. (Note: This does not apply todomestic abuse or abusive relationships. Seek protection, counseling and legal help for these situations.)
       
    • Attachment to things. Many human beings have a tendency to allow our possessions to define us, and ultimately what we own can entrap us. If you cannot move for clutter, cannot change your lifestyle for fear of not being able to accommodate the treasures you've accumulated, it's time to detach yourself. Letting go of an attachment to things frees you up to live with purpose rather than falling back onto the imagined comfort of possessions.
       
    • Personal tragedy or loss. You may have suffered a tragic experience in your life, and you may struggle with clinging on to the past or blaming yourself. Grief is a natural part of life, but it is not to be wallowed in. Remember that only one time truly exists, and that is the present. By clinging to the past, you let go of the present and never get to see the future. If you are not careful, it is easy to blame yourself or assume that you cannot go on. There are plenty of other people who need your  encouragement and love, and just because it was too late to change your situation doesn't mean that you cannot help others in similar situations.
       
     
  4. Stop fearing loss. Attachment to a job, particular people, possessions, or beliefs can mire us in the fear of losing these anchor-points in our life. When things do go wrong, as inevitably they will at times, our grief can stymie our growth and cause us to grind to a standstill. Accept the moment for what it is and believe that what you have now is enough. At the same time, be proactive  to prevent yourself from being a sitting duck. Should things not be working out in a current situation, make plans to change your own part in the situation, such as sending out job applications, getting a makeover, or changing your study course, etc.
     
  5. Befriend yourself. Your self-worth  should come from within, not from what you perceive that others think of you. Attachment to others gets unhealthy when you're continuing to be around people who are toxic for you just because you're afraid of being alone or left out. By befriending yourself, you won't fear the times of being alone as much, and you will also open up to being available to a wider group of people rather than attaching to merely a few. And strive to maintain healthy relationships with the people you do interact with daily, giving one another breathing space and not expecting too much of others.
    • Interact with new people and stay open to connections. While this shouldn't be about detaching yourself from one person just to immediately replace the former person with another, being open to the possibilities allows more people into your life and less potential to cling to them.
       
  6. Stop living an illusion. Although it still matters to strive for a better you, a better tomorrow, acceptance of what is now is vital to living in the moment, in order to avoid the illusion that your happiness or fulfillment relies on contingencies not yet realized. Don't attach yourself to hopes and dreams  in a way that excuses fixing things that aren't working in your life right now. Accept things as they are now and work on what you'd like to improve on with calmness   and centeredness.
    • An obsession with the future is an attachment as much as is an obsession with the past. If your head is in the future, you're missing the now and how well you live right now makes all the difference for tomorrow's outcomes.
     
  7. Learn to let go of an attachment to feelings. Fellings  are powerful but if we let them control us, we are imprisoned by wayward masters. Accept that sometimes we will feel pain and loss, but we can choose to suffer endlessly or to learn and move on. Feelings are better out than in, so expressing them will help you deal with them more productively than bottling them up inside. Write in a journal, write poems, leave anonymous blog posts, write a letter and burn it, or talk to your invisible or even best trusted friend. Find outlets for your feelings so that they don't serve as unhealthy attachments.
     
  8. After you have helped yourself, tell others about how you live. Letting others gain your trust and going slowly in adopting new beliefs is the most practical non-attachment philosophy that you can practice, and you do not have to be a hermit to do it. Teaching others about non-attachment can be helpful no matter what their situation or beliefs. You can talk about it with people, write blogs, tweet; just keep open about your experience so that others can learn too.
     
  9. Understand that all things must come and go.

Reply for: Buddhists Avoid Attachment?

Niranjan Ch at 11:06 PM - May 16, 2017 ( )

10 Life-Changing Facts

1. Attachments to people prevent us from examining ourselves. Clinging to someone in a relationship often masks an underlying sense of lack or unworthiness that can benefit from your loving exploration. Are you willing to take the focus off the other to see what thoughts and feelings are driving you?

2. Attachments to identities keep us stuck. Are you aware of any habitual ways in which you react emotionally? See if you can pinpoint the identity you hold about yourself. Maybe it doesn’t serve you anymore, and you can give yourself the freedom to respond with greater wisdom and awareness.

3. What often underlies attachment is a fear of not being in control. Can you befriend the unknown and receive things as they happen?

4. The root of many relationship problems is that people are attached to what others should say or do. Recognize when someone is attached to how you should be. Rather than resisting and creating conflict, stay grounded in yourself. Feel compassion for the other’s fear and confusion.

5. Attachment to possessions or money is all about fear. Have as many possessions as you want, but don’t stake your happiness on them. Do your possessions define you? Deeply contemplate losing them all, and realize that you don’t really own anything.

6. Attachment to wanting what you don’t have leads to interminable unhappiness. Can you shift your orientation to appreciate what is already here?

7. Being attached to your needs makes you a victim of circumstances. Do you really need what you think you need? Maybe you are stronger and more whole than you think.

8. Not being attached brings relaxation and ease. You no longer worry about losing what you have. This doesn’t mean that you aren’t excited about having something or sad about its loss. But your underlying peace is not disturbed.

9. Attachment to beliefs and ideas is like living in a small space with many walls. Everywhere you turn, you bump into one. Can you let yourself be vulnerable and open by abandoning your treasured beliefs?

10. When all attachments fall away, what remains is reality. When we see things without the veil of our attachments, we realize life – delicious, pure, luminous, and true.

What have you discovered about your attachments? What happens when you let them go? I’d love to hear…

Reply for: Buddhists Avoid Attachment?

Niranjan Ch at 11:05 PM - May 16, 2017 ( )

The Zen Habits Guide to Letting Go of Attachments

 

I’ve been finding more and more that the Buddha had it right: pretty much all of our struggles, from frustrations to anxiety, from anger to sadness, from grief to worry, all stem from the same thing …

The struggles come from being too tightly attached to something.

When we’re worried, we are tightly attached to how we want things to be, rather than relaxing into accepting whatever might happen when we put forth our best effort. When we’re frustrated with someone, it’s because we’re attached to how we want them to be, rather than accepting them as the wonderful flawed human they are. When we procrastinate, we are attached to things being easy and comfortable (like distractions) rather than accepting that to do something important, we have to push into discomfort. And so on.

OK, if you’re ready to accept that being too attached, clinging too tightly, is the cause of our struggles … then the answer is simple, right? Just loosen the attachments. Just let go.

Easier said than done. Any of us who have tried to let go of attachments knows that it’s not so easy in practice. When our minds are clinging tightly, we don’t want to let go. We really, really want things our way.

So what’s the answer, then? In this short guide, we’ll look at a few practices to help with this.

Letting Go Practices

We can help dissolve these attachments with a few different practices:

  1. Meditation. Meditation is simply sitting still and trying to pay attention to the present moment — whether that’s your breath, your body, or what’s around you right now. What you’ll find is that your mind runs away from the present moment, attaching to worries about the future, planning, remembering things in the past. In meditation, you practice letting go of these mini attachments, by noticing what your mind is doing and letting go, returning to the present moment. This happens again and again, and so you get good at it. It’s like muscle memory after doing it hundreds, thousands of times. You learn that whatever you were attached to is simply a story, a narrative, a dream. It’s not so heavy, just a bit of cloud that can be blown away by a breeze.

  2. Compassion. In this meditation, you wish for an end to your suffering, or an end to the suffering of others. What happens is that this wish transforms you from being stuck in your attachment, to finding a warm heart to melt the attachment and find a way to ease it. You become bigger than your story, when you wish for your own suffering to end. And when you wish for others’ suffering to end, you connect yourself to them, see that your suffering is the same as theirs, understand that you’re in this together. What happens is that your attachments and story become less important, not such a big deal, as you connect with others in this way.

  3. Interdependence. Try meditating not only on the wish for the suffering of others (and yourself) to end, but for others to be happy. All others, whether you like them or not. Again, through doing this, you start to see that you’re all connected in your suffering, and in your desire to be happy. You are not so separate from them. You’re not separate, but interdependence. This connection with others helps you to be less attached and more at ease with life.

  4. Accepting. At the heart of things, attachment is about not wanting things to be the way they are. You want something different. That’s because there’s something about the present moment, about the person in front of you, about yourself, that you don’t like. By meditating, practicing compassion and interdependence, you can start to trust that things are OK just as they are. They might not be “ideal,” but they are just fine. Beautiful even. And you start to become more aware of your continual rejection of the present moment, and open up to the actuality of this moment instead. Over and over, this is the practice, opening and investigating the moment with curiosity, accepting it as it is.

  5. Expansiveness. All of these practices result in a more expansive mind, that is not so narrowly focused on its little story of how things should be, not so focused on its small desires and aversions, but can see those as part of a bigger picture. The mind can hold these little desires, and much more. It’s a wide open space, like a deep blue ocean or dreamy blue sky, and the little attachments are just a part of it, but it can also see the suffering of others and their attachments, it can see the present moment in all its flawed glorious beauty, and be present with all of this at once. Practice this expansiveness right now.

The Zen Habits Method

The way to deal with attachments isn’t simple, and it takes practice.

Meditate daily, focusing on the breath for a couple of minutes every morning. See your suffering and your story and attachments, as you meditate. See this after meditation as well.

After a few weeks, add compassion meditation. Wish for your suffering to end, then expand it to others in your life, then to all living beings.

Learn to see your interconnectedness with others, and practice acceptance of the present moment exactly as it is, in little doses. Small steps. Practice expanding your mind to include these things and all other things in the present moment.

Then, when a difficult attachment arises in your daily life, see the suffering, see the attachment, and expand your mind beyond it, giving yourself compassion while seeing that you are bigger than this attachment. Let it be there like a little cloud, floating around in the wide expanse of your mind, and then lightly let it float away, rather than sinking yourself into it.

With practice, this method can result in contentment with the present, awesome relationships, and less procrastination and distraction.

Reply for: Buddhists Avoid Attachment?

Niranjan Ch at 11:03 PM - May 16, 2017 ( )

What Does Non-Attachment Really Mean?

Non-attachment doesn’t mean being cold as a stone. Emotions don’t cease to exist as you learn to let go.  You just relate to them differently because you understand their ephemeral nature.  And that, thank goodness, means there’s a lot less to get riled up about.

 

For example, even great spiritual teachers:

  • Cry
  • Smile
  • Laugh
  • Play

They may have moments when impatience or frustration arises, too.  They’re ultra human, and not indifferent in the least.

But, they don’t entangle themselves in these emotional states by firing up aversion for the “negative” or wanting to extend the “positive.”   They allow emotions to rise and dissolve.  They don’t feed emotions, fuel drama, or express distress by engaging in knock-on negative behaviors.  They have perspective.

This takes considerable practice, but virtually everyone has the power to tame their mind through cultivating mindfulness and awareness.

The Beauty of Non-Attachment

When you understand the true meaning of non-attachment:

  • Expectations no longer rule your life.
  • Emotions arise, but you have space.  You have perspective. Emotions  don’t catch and torment you every time.
  • You relate to the world as it is rather than to your concepts about it, which never bring lasting happiness.
  • You have a clarity of mind so you’re able to see through to the truth of things.
  • You’re not bothered by much, but that doesn’t mean you tolerate harmful behavior.
  • The problems of this world evoke compassion rather than anger.
  • You don’t chase after happiness.  You just enjoy it when it’s present, and release it when it dissolves.
  • You’re able to allow life to unfold without needing to control everything.
  • You don’t stop loving.  You love even more.
  • Your heart only grows bigger and bigger and bigger, when you see all the unnecessary suffering in this world.
  • You feel naturally compelled to help, but you’re not attached to the outcome.
  • The sense of spaciousness and freedom you feel bring a genuine contentment that can never be found in temporary experiences.

You are free because you’re in charge of your mind and emotions instead of them bossing you around.  And, with this freedom, you can taste the distinct flavor of every experience with no need to squeeze it tightly to your chest.

New Thread: Buddhists Avoid Attachment?

Niranjan Ch at 11:00 PM - May 16, 2017 ( )

The principle of nonattachment is key to understanding and practicing Buddhist religious philosophy, but like so many concepts in Buddhism, it can confuse and even discourage many newcomers to the philosophy.

Such a reaction is common to people, especially from the West, as they begin to explore Buddhism. If this philosophy that is supposed to be about joy, they wonder, why does it spend so much time saying that life in inherently full of suffering , that nonattachment is a goal, and that a recognition of emptiness (shunyata) is a step toward enlightenment?

 

All those things sound discouraging, even depressing at first glance.

But Buddhism is indeed a philosophy of joy, and the confusion among newcomers is partly because the words from the Sanskrit language do not have exact translations in English, and partly because the personal frame of reference for Westerners is much, much different than that of Eastern cultures.

So let’s explore the concept of non-attachment as used in Buddhist philosophy. To understand it, though, you’ll need to understand its place within the overall structure of basic Buddhist philosophy and practice. The basic premises of Buddhism are known as the  Four Noble Truths 

THE BASICS OF BUDDHISM

The First Noble Truth: Life is “Suffering.”
The Buddha taught that life as we currently know is full of suffering, the closest English translation of the word dukkha. The word has many connotations, including “unsatisfactoriness,” which is perhaps the translation that might be better suited.

 

So to say that life is suffering means, really, that there is a vague feeling that things are not entirely satisfactory, not quite right. A recognition of this vague dissatisfaction and suffering is what constitutes what Buddhism called the First Noble Truth.

It is possible to know the reason for this “suffering” or dissatisfaction, though, and it comes from three sources.

First, we are dissatisfied because we don’t really understand the true nature of things. This confusion is most often translated as ignorance, or avidya, and its principle feature is that we aren’t aware of the interconnectedness of all things. We imagine, for example, that there is a “self” or “I” that exists independently and separately from all other phenomenon. This is perhaps the central misconception identified by Buddhism, and it leads to the next two reasons for dukkha, or suffering.

The Second Noble Truth: Here Are the Reasons for Our Suffering
Our reaction to this misunderstanding about our separateness in the world leads to either attachment/grasping/clinging on the one hand, or aversion/hatred on the other hand. It’s important to know that the Sankrit word for the first concept, Upadana, does not have an exact translation in English; its literal meaning is “fuel,” though it is often translated to mean “attachment.” Similarly, the Sanskrit word for aversion/hatred, devesha, also does not have a literal English translation. Together, these three problems—ignorance, clinging/attachment and aversion—are known as the Three Poisons, and a recognition of them forms the Second Noble Truth.

Now, perhaps, you can begin to see where non-attachment may come into the picture, since we will later see that it is an antidote to one of the Three Poisons.

The Third Noble Truth: It Is Possible to End the Suffering
The Buddha also taught that it is possible NOT to suffer. This is central to the joyful optimism of Buddhism—the recognition that a cessation to dukkha is possible. The essence of this cessation is nothing more than to relinquish the delusion and ignorance that fuel both the attachment/clinging and the aversion/hatred that makes life so unsatisfying. The cessation of that suffering has a name that is quite well known to almost everyone:Nirvana .

The Fourth Noble Truth: Here Is the Path to Ending the Suffering
Finally, the Buddha taught a series of practical rules and methods for moving from a condition of ignorance/attachment/aversion (dukkha) to a permanent state of joy/satisfaction (nirvana).

Among those methods is the famous Eight-Fold Path , a set of practical advisory recommendations for living, designed to move practitioners along the route to nirvana.

THE PRINCIPLE OF NON-ATTACHMENT 

Non-attachment, then, is really an antidote to the attachment/clinging problem described in the Second Noble Truth. For if attachment/clinging is a condition of finding life unsatisfactory, it stands to reason that nonattachment is a condition conducive to satisfaction with life, a condition of nirvana.

It is important to note, though, that the advice is not to detach or unattach from people in your life or from your experiences, but rather to simply recognize the non-attachment that is inherent to begin with. This is a rather key difference between Buddhist and other religious philosophies. While other religions seek to achieve some state of grace through hard work and active repudiation, Buddhism teaches that we are inherently joyful and that it is really a matter of simply surrendering and relinquishing our misguided habits and preconceptions that will allow us to experience the essential Buddahood that is within us all. 

When we simply relax the illusion that we have a “self” that exists separately and independently from other people and phenomenon, we suddenly recognize that there is no need to detach or unattach, because we have always been interconnected with all things at all times. Much the way it is an illusion to call the various oceans separate bodies of water when in fact they are part of one large ocean, it is similarly an illusion to imagine that we exist in a distinct separateness from the rest of the world. 

Zen teacher John Daido Loori said,

"[A]ccording to the Buddhist point of view, non-attachment is exactly the opposite of separation. You need two things in order to have attachment: the thing you’re attaching to, and the person who’s attaching. In non-attachment, on the other hand, there’s unity. There’s unity because there’s nothing to attach to. If you have unified with the whole universe, there’s nothing outside of you, so the notion of attachment becomes absurd. Who will attach to what?"

To live in non-attachment means that we recognize there was never anything to attach or cling to in the first place. And for those who can truly recognize this, it is indeed a position of joyfulness. 

Reply for: Intraday calls

Niranjan Ch at 03:20 PM - May 16, 2017 ( )

69, target hit

Reply for: Intraday calls

Niranjan Ch at 02:17 PM - May 16, 2017 ( )

693

Reply for: Intraday calls

Niranjan Ch at 02:15 PM - May 16, 2017 ( )

692 , safe traders can book profit here

New Thread: Intraday calls

Niranjan Ch at 01:01 PM - May 16, 2017 ( )

Intra buy lichsgfin 688-89 for tgt 695, sl 683

Reply for: Trading Videos

Niranjan Ch at 11:51 PM - May 13, 2017 ( )

Jim Cramer Admits Stock Market Is A 'Total Casino'

https://www.youtube.com/watch?v=GHSjtgChPxg

Reply for: Trading Videos

Niranjan Ch at 11:48 PM - May 13, 2017 ( )

Stock Market - Is It Gambling?

https://www.youtube.com/watch?v=LrBacTOu9NM&t=199s

New Thread: Trading Videos

Niranjan Ch at 04:35 AM - May 13, 2017 ( )

Trading  vs gambling

https://www.youtube.com/watch?v=WQbNl5dCIuc

New Thread: Buy nifty 9200 c

Niranjan Ch at 12:54 PM - Apr 12, 2017 ( )

Buy nifty 9200 ce @ 99-100, Tgt. 110, 120, 130,    sl, 90, ,


From: NIRANJAN CH at 02:07 PM - Apr 12, 2017( )


sl hit

New Thread: Buy nifty option

Niranjan Ch at 10:56 AM - Apr 06, 2017 ( )

Buy nifty 9250 pe @ 98, tgt 108,115, SL 88



From: NIRANJAN CH at 02:37 PM - Apr 06, 2017( )


buy call sl hit

New Thread: Buy nifty options

Niranjan Ch at 11:12 AM - Apr 05, 2017 ( )

Buy nifty 9200 ce @ 131, tgt 142, 152 sl 120

New Thread: buy nifty option intraday

Niranjan Ch at 01:36 PM - Apr 03, 2017 ( )

BUy 9200 ce @ 119, tgt 129, sl 109

New Thread: Buy nifty

Niranjan Ch at 10:57 AM - Mar 28, 2017 ( )

Buy nifty around 9100, Target 9120, sl. 9078

New Thread: Time to learn 'Option Greeks'

Niranjan Ch at 04:43 PM - Nov 23, 2016 ( )

Key Points

  • Option Greeks measure the different factors that affect the price of an option contract.
  • We'll explore the key Greeks: Delta, Gamma, Theta, Vega and Rho.
  • Armed with Greeks, an options trader can make more informed decisions about which options to trade, and when to trade them.

If you're an options trader, you may have heard about "Greeks" but you may not know exactly what they are or what they can do for you. If so, read on as we explain what these Greek letters mean and how to use them to better understand the price of an option.

What can option Greeks do for you?

Armed with Greeks, an options trader can make more informed decisions about which options to trade, and when to trade them. Consider some of the things Greeks may help you do:

  • Gauge the likelihood that an option you're considering will expire in the money (Delta).
  • Estimate how much the Delta will change when the stock price changes (Gamma).
  • Get a feel for how much value your option might lose each day as it approaches expiration (Theta).
  • Understand how sensitive an option might be to large price swings in the underlying stock (Vega).
  • Simulate the effect of interest rate changes on an option (Rho).

What are Greeks anyway?

Greeks, including Delta, Gamma, Theta, Vega and Rho, measure the different factors that affect the price of an option contract. They are calculated using a theoretical options pricing model 

Since there are a variety of market factors that can affect the price of an option in some way, assuming all other factors remain unchanged, we can use these pricing models to calculate the Greeks and determine the impact of each factor when its value changes. For example, if we know that an option typically moves less than the underlying stock, we can use Delta to determine how much it is expected to move when the stock moves $1. If we know that an option loses value over time, we can use Theta to approximate how much value it loses each day.

Now, let's define each Greek in more detail.

Delta: The hedge ratio

The first Greek is Delta, which measures how much an option's price is expected to change per $1 change in the price of the underlying security or index. For example, a Delta of 0.40 means that the option's price will theoretically move $0.40 for every $1 move in the price of the underlying stock or index.

Call options

  • Have a positive Delta that can range from zero to 1.00.
  • At-the-money options usually have a Delta near .50.
  • The Delta will increase (and approach 1.00) as the option gets deeper in the money.
  • The Delta of in-the-money call options will get closer to 1.00 as expiration approaches.
  • The Delta of out-of-the-money call options will get closer to zero as expiration approaches.

Put options

  • Have a negative Delta that can range from zero to -1.00.
  • At-the-money options usually have a Delta near -.50.
  • The Delta will decrease (and approach -1.00) as the option gets deeper in the money.
  • The Delta of in-the-money put options will get closer to -1.00 as expiration approaches.
  • The Delta of out-of-the-money put options will get closer to zero as expiration approaches.

You also might think of Delta, as the percent chance (or probability) that a given option will expire in the money.

  • For example, a Delta of 0.40 means the option has about a 40% chance of being in the money at expiration. This doesn’t mean your trade will be profitable. That of course, depends on the price at which you bought or sold the option.

You also might think of Delta, as the number of shares of the underlying stock, the option behaves like.

  • A Delta of 0.40 also means that given a $1 move in the underlying stock, the option will likely gain or lose about the same amount of money as 40 shares of the stock.

Gamma: the rate of change of Delta

Gamma measures the rate of change in an option's Delta per $1 change in the price of the underlying stock. Since a Delta is only good for a given moment in time, Gamma tells you how much the option's Delta should change as the price of the underlying stock or index increases or decreases. If you remember high school physics class, you can think of Delta as speed and Gamma as acceleration.

Let's walk through the relationship between Delta and Gamma:

  • Delta is only accurate at a certain price and time. In the Delta example above, once the stock has moved $1 and the option has subsequently moved $.40, the Delta is no longer 0.40.
  • As we stated, this $1 move would cause a call option to be deeper in the money, and therefore the Delta will move closer to 1.00. Let's assume the Delta is now 0.55.
  • This change in Delta from 0.40 to 0.55 is 0.15—this is the option's Gamma.
  • Because Delta can't exceed 1.00, Gamma decreases as an option gets further in the money and Delta approaches 1.00.

Theta: time decay

Theta measures the change in the price of an option for a one-day decrease in its time to expiration.  Simply put, Theta tells you how much the price of an option should decrease as the option nears expiration.

  • Since options lose value as expiration approaches, Theta estimates how much value the option will lose, each day, if all other factors remain the same.
  • Because time-value erosion is not linear, Theta of at-the-money (ATM), just slightly out-of-the-money and in-the-money (ITM) options generally increases as expiration approaches, while Theta of far out-of-the-money (OOTM) options generally decreases as expiration approaches.
 

Time-value erosion

 

Time value erosion

Source: Schwab Center for Financial Research.

Vega: sensitivity to volatility

Vega measures the rate of change in an option's price per 1% change in the implied volatility  of the underlying stock. While Vega is not a real Greek letter, it is intended to tell you how much an option's price should move when the volatility of the underlying security or index increases or decreases.

More about Vega:

  • Vega measures how the implied volatility of a stock affects the price of the options on that stock.
  • Volatility is one of the most important factors affecting the value of options.
  • Neglecting Vega can cause you to "overpay" when buying options.  All other factors being equal, when determining strategy, consider buying options when Vega is below "normal" levels and selling options when Vega is above "normal" levels. One way to determine this is to compare the historical volatility to the implied volatility. Chart studies for both of these values exist within StreetSmart Edge®.
  • A drop in Vega will typically cause both calls and puts to lose value.
  • An increase in Vega will typically cause both calls and puts to gain value.

Rho: sensitivity to interest rates

Rho measures the expected change in an option's price per 1% change in interest rates. It tells you how much the price of an option should rise or fall if the “risk-free” (U.S. Treasury-bill)* interest rate increases or decreases.

More about Rho:

  • As interest rates increase, the value of call options will generally increase.
  • As interest rates increase, the value of put options will usually decrease.
  • For these reasons, call options have positive Rho and put options have negative Rho.
  • Rho is generally not a huge factor in the price of an option, but should be considered if prevailing interest rates are expected to change, such as just before a Federal Open Market Committee (FOMC) meeting.
  • Long-Term Equity AnticiPation Securities® (LEAPS®) options are far more sensitive to changes in interest rates than are shorter-term options. 

You can see the effects of Rho by considering a hypothetical stock that’s trading exactly at its strike price.

  • If the stock is trading at $25, the 25 calls and the 25 puts would both be exactly at the money.
  • You might see the calls trading at a price of $0.60, while the puts may trade at a price of $0.50.
  • When interest rates are low, the difference will be relatively small.
  • As interest rates increase, this difference between puts and calls whose strikes are equidistant from the underlying stock will get wider.

Implied volatility: like a Greek

Though not actually a Greek, implied volatility is closely related. The implied volatility of an option is the theoretical volatility based on the option’s quoted price. The implied volatility of a stock is an estimate of how its price may change going forward. In other words, implied volatility is the estimated volatility of a stock that is implied by the prices of the options on that stock. Key points to remember:

  • Implied volatility is derived using a theoretical pricing model and solving for volatility.
  • Since volatility is the only component of the pricing model that is estimated (based on historical volatility), it's possible to calculate the current volatility estimate the options market maker is using.
  • Higher-than-normal implied volatilities are usually more favorable for options sellers, while lower-than-normal implied volatilities are more favorable for option buyers because volatility often reverts back to its mean over time.
  • To an options trader, solving for implied volatility is generally more useful than calculating the theoretical price, since it's difficult for most traders to estimate future volatility.
  • Implied volatility is usually not consistent for all options of a particular security or index and will generally be lowest for at-the-money and near-the-money options.

Since it's difficult on your own to estimate how volatile a stock really is, you can watch the implied volatility to know what volatility assumption the market makers are using in determining their quoted bid and ask prices. Schwab's trading platform, StreetSmart Edge®, has charting studies for historical volatility and implied volatility. By comparing the underlying stock’s implied volatility to the historical volatility, you can sometimes get a good sense of whether an option is priced higher or lower than normal.

 

source:

https://www.schwab.com/public/schwab/nn/articles/How-to-Understand-option-Greeks

New Thread: Buy HCL TECH

Niranjan Ch at 11:46 AM - Jul 13, 2016 ( )

Buy HCL TECH  @cmp 720-721

New Thread: Buy Voltas

Niranjan Ch at 11:51 AM - Jul 11, 2016 ( )

Buy Voltas cmp @ 317.5

New Thread: SELL HDIL

Niranjan Ch at 11:38 AM - Jul 07, 2016 ( )

SELL HDIL @ 105.6



From: NIRANJAN CH at 11:39 AM - Jul 07, 2016( )


SL-106.65, T-103.5

New Thread: Buy IDBI

Niranjan Ch at 02:15 PM - Jun 27, 2016 ( )

Buy Sunt Tv @ cmp

Buy IDBI   @ cmp



From: NIRANJAN CH at 02:17 PM - Jun 27, 2016( )


idbi @ 67.2   Target= 68.5, SL=66.53S



From: NIRANJAN CH at 02:21 PM - Jun 27, 2016( )


Suntv  Target = 361 sl=350

New Thread: Finding the real value of stock

Niranjan Ch at 05:53 AM - Jun 19, 2016 ( )

Intrinsic Value Of Indian Stocks By Graham’s Formula

Intrinsic value calculation is essential for investors interested to buy stocks for long term. Intrinsic value calculation helps to estimate ‘true value’ of stocks. Share market is full of bad and good quality stocks. Long term investors loves to buy only quality ones. But quality stocks generally trade at overvalued price levels. One must always avoid to buy overvalued ones.

People must target only best shares to buy for investing. Buying only quality stocks which trade at undervalued price levels is the right strategy. Intrinsic value calculator is the key to success in stock investing. Identifying best shares to buy which are trading at undervalued price levels is a success mantra. But what are undervalued stocks?

Definition of undervalued stocks can better be understood by knowing intrinsic value. Some stocks trade at P/E ratios of 5. Others trade at outrageous P/E ratios of 40. Now the question remains, does high P/E ratio means stock is overvalued? Generally speaking, high P/E ratio hints at stock being overvalued. Then why investors still buy high P/E stocks? It is a also a general understanding that high P/E stocks are high growth stocks. But every thing in this world has a price. Even stocks has its right price. No matter how good are growth stocks, but if they are not bought at right prices, it will make loss. Stock fundamental may be great, but if not bought at right price loss is inevitable.

Save Lakhs by using Loan Prepayment Calculator

Market price of stock shall be trading at prices below its intrinsic value. This is when stocks are said to be trading at right price. Stock trading at P/E of 30 can still be undervalued. Stock trading at P/E of 10 can still be overvalued. Intrinsic value calculator helps us to solve this investment puzzle. Best shares to buy will be those shares which is trading at discount to its intrinsic value.

Intrinsic Value Calculator

 

Current Market Price (Rs.)
Current Year EPS (Rs.)
Expected Growth Rate (%) in next 5 Years
Interest rate of AAA Corporate Bond as on today (%)

Intrinsic Value (Rs.)


When we go to the market to buy house hold items like groceries, clothes etc we see their price tag first. We know right price of house hold items, hence we make right decisions. Before we buy them we compare its current price with our right price. People who bargain are those who think that the right price are lower. Everyone does not carry the same numbers for ‘right price’ in their head. Right price differ form person to person. But this difference is not so big. If acceptable price of sugar is Rs40/Kg and a trader is selling it at Rs 45/Kg then he will face stiff resistance from public. The same buying logic applies to stocks as well. Target should be to to buy cheap stocks. Knowing the range of right price of stocks is essential. Let me give you an example:

Let me make a statement; “Stocks of TCS is trading at Rs 2,500 in Sensex”. What useful-information it provides to us? Does it say that it is a cheap stock? No. But if we know that ‘right price of TCS is Rs 2,600 and it is trading at Rs 2,500’ then this information is useful. It immediately highlights that TCS is undervalued. But in order to declare right price (intrinsic value) of TCS, I must know the skill of intrinsic value calculation. It helps us to identify cheap stocks

A person who does not know to value stocks will invest blindly. There is no other more reliable way of investing in stocks than value investing. Intrinsic value calculations based on stocks EPS are good. Not many in this world know how to value stocks. It is not difficult to develop at least basic stock valuation skills. But people ignore it as they prefer easier options. But easier options (like day trading) are less reliable. Long term investors always rely on intrinsic value calculation method.

Knowing intrinsic value of stocks in only the first step. Maintaining themargin of safety is also essential. Warren Buffett says that stocks must be bought by maintaining a margin of safety. Rule of margin of safety was first coined by Benjamin Graham. Stocks must be bought at market price equal to 2/3rd of its intrinsic value. Suppose a stock has intrinsic value of $300. Two-third of intrinsic value means 2/3 x $300 = $200. If market price of stock is $200 or below then it is a great buy. Intrinsic value calculation is only an estimate. Different experts has their own way of estimating intrinsic value. By maintaining a margin of safety we are adding a safety factor. This further prevents investors from making losses.

Note: Novice investors does not calculate intrinsic value of stocks, leave aside the intention to maintain margin of safety .

Calculate Intrinsic Value of Stocks (Stock Price Valuation):

  • Step1 – Calculate intrinsic value of stock
  • Step2 – Note the market price of stock
  • Step3 – Compare current market price if it is trading below 2/3rd of its intrinsic value

Ben Graham value investing formula is one of the best stock valuation tools. Several decades ago Ben Graham wrote a book on value investing called Intelligent Investor. This book is still called as a bible of value investing. In this book Ben Graham proposed valye investing formula. Stock investors can use this formula to estimate the true value of stocks. Just to give you an idea of enormity of this value investing formula, I will give a brief introduction about Ben Graham. Perhaps we all know Warren Buffett, Ben Graham was the teacher and educator of Warrer Buffett. So a formula proposed by Ben Graham must be worth a fortune. Its true, this formula is really great yet simple to use formula. We cannot can say that the true value/intrinsic value estimated by this formula is perfect. But for an average investors like you and me, it will give us a very fair idea about true value of stocks.

Ben Graham Value Investing Formula

Ben Graham value investing formula which appeared on Intelligent Investor is like this:
ben graham value investing formula

V Intrinsic Value
EPS Average EPS for the last 12 months (or one financial year)
8.5 Assumed P/E ratio of Stock
g Assumed Growth Rate for the forthcoming years (7 to 10 years)

But in this formula originally proposed by Benjamin Graham, the prevailing interest rate factor was not considered. In year 1962, Graham decided to update this formula. He inserted the interest rate factor in the existing formula. So the tweaked formula looked like this.

ben graham value investing formula

4.4 Interest rate of AAA Corporate Bond in year 1962
Y Interest rate of AAA Corporate Bond as on today

You can get the AAA bond yield from the internet

Let us try to use this formula using a live example

I will use Ben Graham value investing formula to find true value of Tata Consulting Services share:

TCS  
Current Market Price Rs 1,281.55

g (Assumed Growth Rate )

4% (I looked at growth in EPS for last five years)
EPS (Average EPS) 62.5 (I added last 4 quarter EPS)
Y (Corporate Bond Yield) 9.5%

Taking all of these values and putting in Ben Graham value investing formula the result is like this:

V = 62.5 x (8.5+2×4) x (4.4/9.5) = Rs 478

TCS is currently trading at P/E multiples of 20 at market price of Rs 1281.55. So we can say that as per our value investing formula, TCS stocks are hugely overvalued (almost 2.6 times).

But if I see at its dividend yield, it is close to 1.95% which is not bad. So the conclusion that I can draw is this; defensive investors who does not have lot of interest in long term capital appreciation can go for TCS stocks. This will give them some dividend income. But in terms of growth, TCS is not so productive.

Conclusion

What I suggest to my reader is that Ben Graham value investing formula is only a starting point of stock valuation. It will give you an idea of the intrinsic value of a stock. But one must not buy stocks only on basis of this formula alone. Never use this formula in isolation as it will lead to errors. One must cross check true value of stocks using others tools like PEG and Earning Yields. One can also read my other article where I have described http://www.getmoneyrich.com/how-to-value-a-stock/how to value stocks. Use of the other rules to evaluate stocks and then using Ben Graham value investing formula can prove most profitable for investors.

 

sources: http://www.getmoneyrich.com/stock-price-valuation-intrinsic-value/

New Thread: How The Big Players Manipulate The Stock Market

Niranjan Ch at 05:38 AM - Jun 19, 2016 ( )

 
  • How The Big Players Manipulate The Stock Market

    I have always wondered if the big stock traders were able to manipulate the stock market and how they did it. Now I am confident that I know the answer to both of these questions, and you will too, after you read this article, and view the information in the links provided. I describe and illustrate the process they use to manipulate stocks in easy to understand terms. First, so you don't think I am totally out of my mind making these allegations, here is a link for you to view a YouTube video of CNBC's Jim Cramer titled, "Market Manipulation is a fact" and a link to Jim Cramer's Wikepedia where you can find the following excerpt-

    "In March 2007, a December 2006 interview from TheStreet.com's "Wall Street Confidential" webcast stirred controversy after it appeared on YouTube.com. In the video, Cramer described activities used by hedge fund managers to manipulate stock prices - some of debatable legality and others illegal. He described how he could push stocks higher or lower with as little as $5 million in capital when he was running his hedge fund. Cramer said, "A lot of times when I was short at my hedge fund...When I was positioned short-meaning I needed it down-I would create a level of activity beforehand that could drive the futures." He also encouraged hedge funds to engage in this type of activity because it is "a very quick way to make money"."

    "Cramer stated that everything he did was legal, but that illegal activity is common in the hedge fund industry as well. He also stated that some hedge fund managers spread false rumors to drive a stock down: "What's important when you are in that hedge-fund mode is to not do anything remotely truthful because the truth is so against your view, that it's important to create a new truth, to develop a fiction." Cramer described a variety of tactics that hedge fund managers use to affect a stock's priceCramer said that one strategy to keep a stock price down is to spread false rumors to reporters he described as "the Pisanis of the world". The comment was a reference to CNBC correspondent Bob Pisani, who reports from the trading floor of the New York Stock Exchange. "You have to use these guys," said Cramer. He also discussed giving information to "the bozo reporter from The Wall Street Journal" to get an article published. Cramer said this practice, although illegal, is easy to do "because the SEC doesn't understand it." During the interview Cramer referred to himself as a "banking class hero.""

    Even though I have traded in the stock market for many years, it wasn't until I recently starting trading stocks using TD Ameritrade's ThinkorSwim trading platform, where I can quickly analyze stock trading over various time periods (day(s), month(s), year(s)) as well as over short intervals (even as short as a minute), that I began to realize how shorts were manipulating the market. Since May 1st of this year when a short attack began against Herbalife (NYSE:HLF), I have been following all of the activity surrounding that company including all news stories as well as all daily trading activity.

    Before I began researching the information for this article, I began to see (HLF) trading activity that didn't make sense to me. In fact, it really didn't make sense that two companies under different ownership and management but mainly just sharing the commonality of being MLM's, Herbalife's and Nu Skin's (NYSE:NUS) shares were both attacked at the same time. Here is a link to both company's charts- HLF chart and NUS Chart , where you can see how their share price has traded over the last few months. (SUGGESTION: Use 6 month time period as well as candlestick format for the charts)

    Even though I believe there has been manipulation of Herbalife's (HLF) shares on a daily basis, I want to focus on the manipulation that occurred immediately after Herbalife reported Record 2nd Quarter 2012 which I discuss in greater detail in my article- "Herbalife Shorts Shorted More Shares To Stop Upward Share Price Momentum" In order to stop longs enthusiasm and the momentum created by a great 2nd quarter, shorts continued to added 585,409 shares of HLF shorted to their short positions over the period August 1, 2012 to August 15, 2012 to not only stop Herbalife's share price from rising but to also knock it back down by $1.85-

     

     

     

    Settlement Date Short Interest Closing Share price
    8/15/2012 13,007,577 $53.05
    7/31/2012 12,422,168 $54.89

    You might think an additional 585,409 shares shorted sounds like a small number of shares shorted since Herbalife has over 100 million shares outstanding. However, when you realize that there was only actually 11 trading days during that time period, and when you also understand that the shorts used computerized selling and buying of shares at opportune times to manipulate the share price, you should understand why they were able to control Herbalife's share price during that time period, to stop the upward share price momentum, and then to drive the share price slightly down.

    How it works

    This process can be used by hedge funds to either pump up a stock or to trash a stock but since I am using Herbalife as an example, we will discuss that situation. First information is widely distributed to make investors wonder about the company and to put fear into those longs that hold the stock. Next, high volume shorting takes place to drive the company's share price down.

    As the short attack continues, more people parade out news to continue to put questions in the back of investors' minds. On a daily basis, shorts use computerized trading to control the direction of the share price. At opportune times, the shorts overwhelm the buyers (bid price) of the stock by selling short large number of shares to drive the share price down and to eliminate the buyers for the stock at that given time. For people who are not familiar with the bid/ask process of trading stocks, here is a link to explain that process.

    Shorts need to control the stock's share price over a long time (often several months to well over a year), and can't afford to just accumulate an unlimited number of short positions in the stock, so they have to be buying shares at the same time they are selling shares too. When the shorts drive the share price down, eliminating buyers as discussed above, some of those investors trying to sell their shares at that same time will follow the share price activity downward lowering their ask price.

    Now the shorts can buy back some of the shares they have shorted at lower prices including some shares where longs have put stop-loss sale orders to protect against downside losses. The shorts will only buy shares part of the way back up as the share price rises, and then wait to see if new buyers come into the market. If the share price continues to rise up to much again during the day, the shorts will repeat the same selling and buying process to control the share price.

    As mentioned above, the shorts need to control the share price over an extended period of time. They need to wear down the longs with rumor mongering as well as by creating fear as the longs continue to see the share price go down from the computerized trading. They hope the longs will give up and sell their shares at the lowest possible share price.

    Another observation, shorts try to wear down the longs by making sure that the share price closes down as many days in a row as they can put together. At the close of each day, I witnessed volume dramatically increasing as the shorts tried to insure Herbalife's share price closed down. Shorts are hoping the longs frustration with the share price continuing downward will end up in capitulation where as many longs as possible just give up and sell their shares.

    I don't know how low the shorts will drive the share price of Herbalife during this current short attack, but I do believe Herbalife is a strong good growing company. As with all false short attacks, the share price will bounce back. After the share price bottom is reached, I expect the shorts to continue their rumor mongering so they can continue buying to cover their shorts as the share price rises back up.

    Since Herbalife is already in its 5th month of being attacked by shorts, and if history repeats itself, anyone buying shares of Herbalife (HLF) at this time should be in for some nice gains over the next 6 to 12 months as Herbalife's share price rises back to and above where it was when this short attack began. The shorts greatest fear is that people will figure out their lies to soon, and the share price will rise up to quickly. I think there is a good chance for that to happen as a lot of people will be learning more about this scheme.

    Also I have to believe this manipulation has to involve collusion between all the major players in the Herbalife short attack since it wouldn't work like it has if they didn't work together. If one or more of the major short players decided they didn't want to participate further in driving the share price down, and decided to buy to cover, this would create a major problem for those other major short players. The remaining major short players would not only have to drive the price down based on selling shares to new longs but would also have to sell shares to those other major short players buying to cover their shorts. The remaining short players would not be able to manipulate the stock share price as easy as they did working together.

    If you are wondering why would they short more shares even when a company like Herbalife is obviously a healthy growing company. Here is the reason. Since the shorts already have the investment community wondering about problems, introduced by the shorts themselves, concerning the company; since shorts have already shorted $745 Million+ (12,422,168 X $60 per share (my guess at average share price shorts sold their shares at)) shares of Herbalife; and by just adding almost $32 Million (585,409 X $54 average-?) more shares shorted, the shorts were able to take the steam out of a lot of the longs' enthusiasm over the 2nd quarter financial news, and now the shorts believe they will have a better opportunity to buy to cover their shorts at a lower price as well as they will have more time to do so. At least that's what the shorts hope for.

    Also from the shorts view, they have offset that additional $32 Million of shorting by reducing the basis of the 12,422,168 shares they already had on their books by an almost $23 Million (12,422,168 X $1.84 share reduction) of increased unrealized gain. On top of trying to obtain direct profits from controlling the share price, and since shorts know more about the direction of the share price, shorts are able to make more profits from selling and buying options. I would have to believe these option profits could run into the millions of dollars too.

    As you can see from the large dollar amounts involved in Herbalife's short attack, these must be big players and they must have a lot of influence over the marketplace which brings me to my next subject.

    I am really concerned about the investment reporting we are getting from the media especially from CNBC's reporters Jim Cramer and Herb Greenberg. Jim Cramer, who apparently couldn't recommend Herbalife's stock during the last short attack in 2008-2009 which included the same short arguments currently being used, "Herbalife Short Attack: History Repeats Itself."; changed to repeatedly recommending to buy the stock as the stock climbed up to the $70+ range, and then abandoned longs once again by changing to not recommending Herbalife's stock as he tells everyone per this 8/8/12 video "Lightning Round(see video at 2:50).

    It appears Cramer just abandoned those Herbalife longs again including those that purchased their shares based on his recommendation to join his hedge fund buddies that are short Herbalife. Cramer claimed that he couldn't recommend Herbalife based upon a decision made over 4 years ago by Herbalife to not fight a legal battle with Barry Minkow, a convicted felon which his fellow CNBC reporter Greenberg brought to his attention and discusses in his article, "Why Did Herbalife Pay Felon Barry Minkow $300,000?: Greenberg". I have fully explained, in the following linked article, why Herbalife made the decisions they made surrounding this issue and have emailed this information to both Cramer and Greenberg with no change or response by either of them- ""Response To Greenberg: Reasons Why Herbalife Paid Felon Barry Minkow $300,000"

    As far as to Greenberg's reporting, I don't know what his connections are to the big hedge funds shorting Herbalife, but I think he seems desperate to come up with "what if this happens" issues to the point that even Per this CNBC 7/31/12 interview of Michael Johnson, Herbalife CEO by Cramer and Greenberg (at 10:18 of video), Johnson seemed puzzled when Greenberg frantically blurted out his last question as if he was trying to search for one last dagger to put in Michael Johnson's back-

    Greenberg's question: "You are very big in Mexico- Wal-Mart had problems in Mexico- How do we know you are not paying bribes in Mexico?"
    Johnson's response to Greenberg: <laughing> "You are coming from a very interesting place. We got to get you wired for positive."
    Other CNBC commentators: <laughing in background> "How was that a follow up for the Avon question?"

    How to tell a correctly shorted stock versus a short attack bluff

    Since David Einhorn's innocuous questions on Herbalife's conference call seems to be the event that started the short attack on Herbalife, and since Einhorn loves poker, I will use poker terms to explain how you can determine whether a stock is shorted for good reasons or just a bluff.

    If you believe you have a winning hand in poker, you want everyone else to put in as much cash as they possible can. You don't want to tip them off in any fashion that you have the winning hand. You want the pot to as big as possible when you show your hand. If you don't have a good hand and are bluffing, you need to be sneaky putting in bets when you really know you don't have a good hand hoping that the other players fold their winning hands. You don't even want others to put more cash in the pot since you want them to drop out of the game.

    First you need to understand that the object for shorts is selling as high as they can and then buying as low as they can if they have to cover their short position. For those of you who are not familiar with selling stock short, here is a link to explain short selling. Also when longs are selling their positions, they will always try to sell their shares at the highest price they can get.

    If you knew a company's share price was really overpriced for any reason, you would not do anything to tip anyone else off until you had shorted all the shares you could. Then, given the right opportunity to show your hand, you would explain your position as to why the shares were over priced in a logical fashion. Yes, there would be other shorts jump in to help drive the share price down but it wouldn't necessarily be about driving the share price down based mainly upon high volume trading. You would be ok with longs coming into the market to drive the share price up (more cash in the pot) since it would give you more of an opportunity to short at a higher price before your real prediction came true.

    If you were a short bluffing (basically manipulating a shares' price) about a company's overvalued share price, you might not want to draw attention to yourself since you could get accused of stock manipulation so you would hope (or plan for) others to get involved and to present seemingly good reasons to short the stock. You would want to put as much fear into longs as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it's probably shorts selling since longs are totally motivated to sell their shares at the highest possible selling price.

    Here is what one stock investment reporter from one of America's premier financial magazines, who had wrote some articles about Herbalife's situation which I disagreed with, emailed me (I will not give his name out as I don't want to cause him problems.)-

    "I'm no lawyer but doesn't it reek of stock manipulation? I would think so. A lot of hedge-fund types I come across are skittish about appearing in the media whatsoever, much less being portrayed (correctly) as tanking a stock.

    It could be as simple as a (well-advised) desire to not invite more regulatory scrutiny."

    I believe that stock market manipulation by big players is a major problem. I know this article focuses on one stock, but just like cockroaches, if you can find one, I am sure there are a lot more out there. The only way we are going to make changes in this society is to make as many people, especially our elected officials, aware of this problem as we can. I am sure this problem steals money from the vast majority of our investments and retirement programs. If you agree with me, and you want to help me try to do something about this problem, by getting the word out, please email this article, post to facebook, twitter, LinkedIn, etc. links to this article, of my blog, to as many people as you can.

    As for me, I am long HLF shares and I still believe that Herbalife shares are a great buy as per my article, "Herbalife Shorts' Problems Could Be Great Buying Opportunity For Longs".

 
source:http://seekingalpha.com/instablog/2918951-g-hudson/1026551-how-the-big-players-manipulate-the-stock-market

New Thread: Buy idea

Niranjan Ch at 01:55 PM - Mar 29, 2016 ( )

Buy  idea @ 108.10

Threads by Niranjan Ch
TitleDate
Intraday calls [2 ] Intraday Section 16 Jun, 2017
Intraday call for today [6 ] Intraday Section 02 Jun, 2017
Buy Titan Inraday [6 ] Intraday Section 31 May, 2017
Costless Collar (Zero-Cost Collar) [1 ] General Discussion 17 May, 2017
Buddhists Avoid Attachment? [5 ] General Discussion 16 May, 2017
Intraday calls [4 ] Intraday Section 16 May, 2017
Trading Videos [8 ] General Discussion 13 May, 2017
Buy nifty 9200 c [4 ] Intraday Section 12 Apr, 2017
Buy nifty option [3 ] Intraday Section 06 Apr, 2017
Buy nifty options [4 ] Intraday Section 05 Apr, 2017
buy nifty option intraday [3 ] Intraday Section 03 Apr, 2017
Buy nifty [1 ] Intraday Section 28 Mar, 2017
Time to learn 'Option Greeks' [3 ] Futures & Options 23 Nov, 2016
Buy HCL TECH [3 ] Intraday Section 13 Jul, 2016
Buy Voltas [2 ] Intraday Section 11 Jul, 2016
SELL HDIL [4 ] Intraday Section 07 Jul, 2016
Buy IDBI [7 ] Intraday Section 27 Jun, 2016
Finding the real value of stock [2 ] Learning Section 19 Jun, 2016
How The Big Players Manipulate The Stock Market [3 ] General Discussion 19 Jun, 2016
Buy idea [4 ] Intraday Section 29 Mar, 2016
Sell BHEL [4 ] Intraday Section 29 Mar, 2016
Buy Maruti @ cmp [5 ] Intraday Section 21 Mar, 2016
SELL ICICI BANK [5 ] Intraday Section 14 Jan, 2016
BUY POWERGRID [1 ] Intraday Section 07 Jan, 2016
Play with strict Sl [1 ] Intraday Section 28 Oct, 2015
Buy Idea CMp@ 152 [1 ] Intraday Section 03 Sep, 2015
sell lupin cmp@1898, [7 ] Intraday Section 02 Sep, 2015
Sell aurobindo pharma cmp 756.7 [4 ] Intraday Section 01 Sep, 2015
Sell petronet Cmp @ 178.95 [1 ] Intraday Section 31 Aug, 2015
SIGNS OF NEW TRADER [1 ] General Discussion 27 Jul, 2015
mistakes-most-retail-investors-do [4 ] General Discussion 19 Jul, 2015
Which One is Better Stoploss or Hedging The Position [4 ] General Discussion 19 Jul, 2015
Buy Tcs [1 ] Intraday Section 13 Jul, 2015
The Greek Crisis For Kids! [6 ] General Discussion 05 Jul, 2015
Put a frog in a vessel of water and start heating the [2 ] General Discussion 30 Jun, 2015
Bit long message but worth Food for thought [1 ] General Discussion 30 Jun, 2015
SHORT HCLTECH CMP 520.1 TGT 515 SL--522.5 [1 ] Intraday Section 01 Aug, 2012
Buy grasim @ 2625 tgt 2640 sl-2615 [2 ] Intraday Section 26 Jul, 2012
SHORT SIEMEN CMP@ 693.7 TGT 680 SL 703 [4 ] Intraday Section 28 May, 2012
BASICS OF INTRA DAY TRADING??? [12 ] Intraday Section 19 May, 2012
BUY TATA POWER ABOVE 90 TGT- 92 SL 89 [3 ] Intraday Section 18 May, 2012
SHORT NIFTY-4878-85 TGT 4840 SL - 4900 [6 ] Intraday Section 17 May, 2012
SHORT MARUTI @ 1201-1202 TGT 1185 SL 1210 [2 ] Intraday Section 17 May, 2012
BUY NIFTY SPOT 5210-5212 TGT 5240,5250 ,& 5260 [2 ] Intraday Section 03 May, 2012
Shirt Nifty spot@5268-70 TGT 5245 ,5235, 5225 + , [6 ] Intraday Section 02 May, 2012
Margaret Thatcher Quotes (Happy Womens day) [6 ] General Discussion 08 Mar, 2012
BUY LT CMP 1367-68 TGT 1400 SL 1365 [3 ] Intraday Section 24 Feb, 2012
short axis bannk cmp 1290-95 tgt 1270 sl-1200 [6 ] Intraday Section 21 Feb, 2012
Short nifty spot 5595-5600 tgt 5550 sl 5620 [7 ] Intraday Section 21 Feb, 2012
SHORT NIFT SPOT CMP 5407 -10 TGT 5380 SL-- 5420 [3 ] Intraday Section 14 Feb, 2012
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