Posts

Showing posts with the label Trading

What is a good stock to invest in? How do you know if a stock will keep rising or not?

  Today (2nd jan 2024) I was watching business channel on there few foreign brokers are bullish on few shares, if you ask me I must say keep eye on thermax, siemens, ICICI Bank, tata motors, mahindra & mahindra, BSE, sbi life, kpit technology, kei industries, hindustan aeronautics, protein e governance, Dr Reddy's laboratories, Apollo hospital, interglobe aviation, larsen & turbo, NDR auto, union Bank, RCF, RVNL, CDSL, zen technology, Bharti Airtel, Trent, oberei realty, Shriram finance, pidilite industries, syngene international, k fintech (invest for longer term), angelone, polycab etc. These are few stocks investors can buy for investment, don't do research keep focus on these stocks, on above paragraph I have mentioned few stocks in which I picked on for budget and for long term investment, persistent systems is another good bet for investment but buy on dips, you can torrent power, tata power stocks for long term investment. Look a stick's nature is show up ...

How does the option price change with the stock price?

  When you’re trading options, you’ll notice their prices dance up and down with the movement of the stock. But how does that work exactly? Let me break it down in simple terms. 1. Intrinsic Value: The "Core" Worth of the Option Imagine a call option as a ticket to buy a stock at a specific price, say ₹100. If the stock is trading at ₹120, that ticket is worth ₹20 right now, this is the  intrinsic value . Calls:  If the stock price rises above the strike price, the call option becomes more valuable. Puts:  For puts, it’s the reverse, if the stock falls below the strike price, the option gains value. If the stock isn’t above ₹100 for a call (or below for a put), the option doesn’t have intrinsic value. But don’t worry, it’s not worthless (yet), thanks to something called  time value . 2. Time Value: The "What If?" Premium Options have an expiration date, so the price also reflects the possibility that the stock  might  move favorably before the deadline...