Team-BHP - Do you play the stock market

Quote:

Originally Posted by pjbiju (Post 2238249)

Is there any sense in accumulating NHPC? I have a few that I got during the IPO and then had bought a few more. However it has not been doing well at all. Does it have a long term potential to do well, say over the next 2-3 years?

Well, broadly all the stocks are falling as if there is no bottom. From what i hear on these channels, consensus is that second half of this year would be much better. Fingers crossed!

In particular, NHPC being in capital intensive business and what with the cost of capital raising, you might have to hold out for longer to see better days.

Quote:

Originally Posted by J.Ravi (Post 2189143)

I am not the lucky one among 71 out of 93 to get 50 shares allotted in Punjab&Sind Bank IPO.

I just now bought 100 shares of Punjab&Sind Bank [PSB] using my Kotak Securities online trading account, which I missed to get allotment during IPO, at Rs 99 each as against Rs 114, allotted price for RII.:) I will be buying more shares of PSB during further dip in the share price.

Quote:

Originally Posted by J.Ravi (Post 2238629)

Way to rub salt in our already bleeding wounds lol:
Just hope that the price doesn't fall any further than this!

I received this in mail from an esteemed member here in the forum called Ravveendrra. Here it goes

Quote:

A cold winter!

It was autumn, and the Red Indians asked their New Chief if the winter was going
to be cold or mild. Since he was a Red Indian chief in a modern society, he
couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the winter
was indeed going to be cold and that the members of the village should collect
wood to be prepared. But also being a practical leader, after several days he
got an idea. He went to the phone booth, called the National Weather Service
and asked 'Is the coming winter going to be cold?'

'It looks like this winter is going to be quite cold indeed,' the weather man
responded.

So the Chief went back to his people and told them to collect even more wood. A
week later, he called the National Weather Service again. 'Is it going to be a
very cold winter?'
'Yes,' the man at National Weather Service again replied, 'It's definitely going
to be a very cold winter.'

The Chief again went back to his people and ordered them to collect every scrap
of wood they could find.

Two weeks later, he called the National Weather Service again.
'Are you absolutely sure that the winter is going to be very cold?'
'Absolutely,' The man replied. 'It's going to be one of the coldest winters
ever.'

'How can you be so sure?' the Chief asked.
The weatherman replied, 'The Red Indians are collecting wood like crazy.'

This is how stock markets work!!!

BTW any idea for the crash of Reliance Infra please:

Quote:

Originally Posted by MileCruncher (Post 2238811)

I received this in mail from an esteemed member here in the forum called Ravveendrra. Here it goes

BTW any idea for the crash of Reliance Infra please:

Very articulately put :D.
Btw, why did Rel Comm crash too? I think there's something wrong with all ADAG stocks!

Rel Infra -> -18.79%
Rel Comm -> -14.32%
Rel Cap -> -14.05%
Rel Power -> -8.93%

Quote:

Originally Posted by Neilguy (Post 2238826)

Very articulately put :D.
Btw, why did Rel Comm crash too? I think there's something wrong with all ADAG stocks!

Rel Infra -> -18.79%
Rel Comm -> -14.32%
Rel Cap -> -14.05%
Rel Power -> -8.93%

There is a rumour going around market circles for a few days that CBI enquiry etc may come into ADAG and Anil may face action. Today he had a meeting with Telecom Minister, must be impact of some rumour floating after that, it seems that some enquiry into the results reported in his stocks has been asked for. Nothing is certain but these are enough in this negative sentiment to kill any stock. Deep hits, Rel Infra may become interesting in another 20% fall probably.
Panic may come soon with margin calls getting triggered, as still long positions are not getting closed off due to margin pressures.

Quote:

Originally Posted by Neilguy (Post 2238826)

Very articulately put :D.
Btw, why did Rel Comm crash too? I think there's something wrong with all ADAG stocks!

Quote:

Originally Posted by mkh (Post 2238939)

Anil may face action.

Quote:

Originally Posted by mkh (Post 2238939)

Nothing is certain but these are enough in this negative sentiment to kill any stock. Deep hits, Rel Infra may become interesting in another 20% fall probably.

All this was due to the rumors that Anil Ambani may be arrested within a week. Hence all ADAG companies tanked.

Was trying to understand how Options work. I do understand how Futures work, was trying to co-relate and I am getting confused.

I was referring to a PDF that HDFC Bank uses internally.
During introduction it mentions:
"Futures have unlimited profit and loss potential.
Options have limited risk and unlimited profit potential."

So I was like, this is better than Futures. I mean, who wouldn't prefer limited risk and unlimited profit potential?

Then I read on and found the following a few pages later:
"Call-Option-Buyer -> Limited losses, potentially unlimited gain.
Call-Option-Writer (Seller) -> Potentially unlimited losses, limited gain

Put-Option-Buyer -> Limited losses, potentially unlimited gain
Put-Option-Writer (Seller) -> Potentially unlimited losses, limited gain"

Can anybody with experience explain this possibly with an example? Or point me to some material which explains this better?

Thanks - SDP

Quote:

Originally Posted by SDP (Post 2240160)

Arre bhai, options humare bas ki baat nahi hai. Leave it.

As for your question, writing an option is the same as futures. You have to make good the difference that the premium moves.

In call buying, you paya premium of say 50 rs. And in call writing, you GET the premium of 50 Rs.

In the buying part, if the market fallls by 500 points, you forget your 50 RS and thats your maximum loss. But in call writing, you have to make good that 500 points to the person who purchased the call from you, in other words, the person who paid you 50 Rs.

@sdp- options present a completely different and fantastic trading strategies. it looks complicated and difficult to understand at first but once you know you can use them effectively. dont worry about the unlimited risk in writing the options. you can always cover your positions when it goes against you. if you are a disciplined trader and know the importance of stops then you can enter options.