Definition of ‘futures contract’ – the economic times usd to rmb

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Definition: A Guts Options Strategy consists of simultaneously buying or selling of Call and Put options that are in-the-money* for the same security and same expiry date. The strike prices of both the options are chosen just next to the at-the-money (ATM) Calls and Puts, i.e. higher strike price than ATM Put for Put Option and lower strike price than ATM Call for Call option.

When both Call and Put options are bought, it is called a Long Gut Spread, and when both Call and Put options are sold, it is called a Short Gut Spread. This is a costly option, as in-the-money (ITM) options are considered, which are generally expensive.

Description: This is a neutral option strategy, where if the price moves on either side, profit on one option will reduce the loss on the other option. Gut options are further divided into two categories:


a) Long Guts Option/Spread: It involves going long on an in-the-money Call option at a lower strike price and a Put option at a higher strike price at the same time for the same security and expiry date 1 usd to idr. This strategy is opted when the trader is not sure of the direction but anticipates major price movement in the security, which increases the value of one of the options chosen and raises the chances of unlimited profit with limited risk. The Long Guts strategy is somewhat like a Long Strangle with the only difference being that out-of-the-money options are considered in the latter case. Also the cost involved in Long Guts is less than that needed in a Long Strangle exchange rate euro usd. It’s a debit spread strategy as the trader pays a premium on both the options at start of the trade.

Example: A trader buys ITM Call option and Put option of RIL for the January series at strike prices Rs 1,040 and Rs 1,080 at premiums of Rs 43.35 and Rs 38.40, where the underlying price is Rs 1,060. The total cost at the start of trade would be (Rs 43.35 + Rs 38.40) = Rs 81.75 (Premiums paid for buying both the options)

Case 1: Security price moves upwards to Rs 1,200 on expiry day, so the Rs 1080 Put option expires worthless and Rs 1,040 Call option gets executed.

Profit/Loss = ((Rs 1,060-Rs 1,040) + (Rs 1,080-Rs 1,060)-Rs 81.75) = (-) Rs 41.75 further commission and exchange taxes will be deducted to get actual profit/loss

Case 3: Security price moves downwards to Rs 1,000 on the expiry day. So call option at Rs 1,040 expires worthless and Put option at Rs 1,080 gets executed.

— Maximum Profit = This will be achieved when the price of the security is less than the strike price of the long Put and greater than strike price of the long Call

b) Short Guts Option/Spread: It involves selling in-the-money Call and Put options at the same time for the same security and expiry date, where the strike prices of both the options are at equidistance from the underlying price. A trader opts for this strategy when he expects less volatility. It’s a credit spread strategy, as the trader receives the premium on both the options at the start of the trade, which is limited profit but at the cost of a very high risk of losing money if the strategy fails as there are no caps on price movements.

The short guts strategy is somewhat like a short strangle, with the only difference being that out-of-the-money options are considered in the latter case.

Example: A trader sells Tata Motors ITM Call option and Put option of January series at strike prices Rs 340 and Rs 360 at premiums of Rs 20.50 and Rs 14.35, where the underlying price is Rs 350 fraction operations worksheet. Now (20.50+14.35) = 34.85 is the premium received for selling both the options.

Case 1: If the security price moves upwards to Rs 380 on the expiry day, the Put option at Rs 360 expires worthless and the Call option at Rs 340 gets executed.

Profit/Loss = ((Rs 340-Rs 380)+Rs 34.85) = (-) Rs 5.15 further commission and exchange taxes will be deducted to get actual profit/loss (Case of Naked options)

Profit/Loss = ((Rs 340- Rs 350) + (Rs 360- Rs 350)+ Rs 34.85) = Rs 34.85 further commission and exchange taxes will be deducted to get actual profit/loss

Case 3: The security price moves downwards to Rs 300 on the expiry day binary addition calculator. So the Call option at Rs 340 expires worthless and the Put option at Rs 360 gets executed

Definition: A futures contract is a contract between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future.

Description: The payment and delivery of the asset is made on the future date termed as delivery date. The buyer in the futures contract is known as to hold a long position or simply long. The seller in the futures contracts is said to be having short position or simply short.

The underlying asset in a futures contract could be commodities, stocks, currencies, interest rates and bond. The futures contract is held at a recognized stock exchange. The exchange acts as mediator and facilitator between the parties. In the beginning both the parties are required by the exchange to put beforehand a nominal account as part of contract known as the margin.

Since the futures prices are bound to change every day, the differences in prices are settled on daily basis from the margin. If the margin is used up, the contractee has to replenish the margin back in the account binary song. This process is called marking to market python xml to json. Thus, on the day of delivery it is only the spot price that is used to decide the difference as all other differences had been previously settled.

Definition: A Guts Options Strategy consists of simultaneously buying or selling of Call and Put options that are in-the-money* for the same security and same expiry date. The strike prices of both the options are chosen just next to the at-the-money (ATM) Calls and Puts, i.e. higher strike price than ATM Put for Put Option and lower strike price than ATM Call for Call option.

When both Call and Put options are bought, it is called a Long Gut Spread, and when both Call and Put options are sold, it is called a Short Gut Spread. This is a costly option, as in-the-money (ITM) options are considered, which are generally expensive.

Description: This is a neutral option strategy, where if the price moves on either side, profit on one option will reduce the loss on the other option. Gut options are further divided into two categories:

a) Long Guts Option/Spread: It involves going long on an in-the-money Call option at a lower strike price and a Put option at a higher strike price at the same time for the same security and expiry date. This strategy is opted when the trader is not sure of the direction but anticipates major price movement in the security, which increases the value of one of the options chosen and raises the chances of unlimited profit with limited risk. The Long Guts strategy is somewhat like a Long Strangle with the only difference being that out-of-the-money options are considered in the latter case. Also the cost involved in Long Guts is less than that needed in a Long Strangle gold price in us. It’s a debit spread strategy as the trader pays a premium on both the options at start of the trade.

Example: A trader buys ITM Call option and Put option of RIL for the January series at strike prices Rs 1,040 and Rs 1,080 at premiums of Rs 43.35 and Rs 38.40, where the underlying price is Rs 1,060. The total cost at the start of trade would be (Rs 43.35 + Rs 38.40) = Rs 81.75 (Premiums paid for buying both the options)

Case 1: Security price moves upwards to Rs 1,200 on expiry day, so the Rs 1080 Put option expires worthless and Rs 1,040 Call option gets executed.

Profit/Loss = ((Rs 1,060-Rs 1,040) + (Rs 1,080-Rs 1,060)-Rs 81.75) = (-) Rs 41.75 further commission and exchange taxes will be deducted to get actual profit/loss

Case 3: Security price moves downwards to Rs 1,000 on the expiry day. So call option at Rs 1,040 expires worthless and Put option at Rs 1,080 gets executed.

— Maximum Profit = This will be achieved when the price of the security is less than the strike price of the long Put and greater than strike price of the long Call

b) Short Guts Option/Spread: It involves selling in-the-money Call and Put options at the same time for the same security and expiry date, where the strike prices of both the options are at equidistance from the underlying price. A trader opts for this strategy when he expects less volatility code c. It’s a credit spread strategy, as the trader receives the premium on both the options at the start of the trade, which is limited profit but at the cost of a very high risk of losing money if the strategy fails as there are no caps on price movements.

The short guts strategy is somewhat like a short strangle, with the only difference being that out-of-the-money options are considered in the latter case.

Example: A trader sells Tata Motors ITM Call option and Put option of January series at strike prices Rs 340 and Rs 360 at premiums of Rs 20.50 and Rs 14.35, where the underlying price is Rs 350. Now (20.50+14.35) = 34.85 is the premium received for selling both the options.

Case 1: If the security price moves upwards to Rs 380 on the expiry day, the Put option at Rs 360 expires worthless and the Call option at Rs 340 gets executed.

Profit/Loss = ((Rs 340-Rs 380)+Rs 34.85) = (-) Rs 5.15 further commission and exchange taxes will be deducted to get actual profit/loss (Case of Naked options)

Profit/Loss = ((Rs 340- Rs 350) + (Rs 360- Rs 350)+ Rs 34.85) = Rs 34.85 further commission and exchange taxes will be deducted to get actual profit/loss

Case 3: The security price moves downwards to Rs 300 on the expiry day. So the Call option at Rs 340 expires worthless and the Put option at Rs 360 gets executed

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