what kind of markets have these been .. a slight news of hope is causing stocks to rally to so much amount which they used to rally in a year .
As i write this Citigroup Corp shares have risen 68% in just 1.5 hrs of trading . 68% in a day !!
That’s a kind of return which mutual funds are really jealous of . Last month when there was some bad news about UNITECH , it plunged by 50% in a day only to recover back 40% the next day ..
Last quarter DLF lost 33% in 2 days on the news of US FDA banning its drugs in US . and then it again came back to its normal levels .
When DLF lost for 2 days , I had seen DLF PUT options went up 50 times in 36 hrs …and on the third day when it was up again by 20% , then its CALL options went up by another 5 times . means if you got everything correct and bought call and put options at right time , you could have made 5 Crores ($1 million) with 4 lacs of money ($8000) . that’s 25000% return in 60 hrs . there is an assumption that you bought things at right time which is almost impossible … but with little luck and study at least 1000% was possible for sure …
I thought of buying DLF puts after it fell for 1st day , but because of fear , i didn’t buy it .. and it went up by 800% next day ( i remember it correct , it went up from Rs 4-5 to Rs 40) , that’s 800-900% return in 2 hrs .
I am sure Citigroup option traders would either have made a killing or killed themselves . 
Anyways , options are extremely dangerous products , its not advisable to get into them unless you are sure what you are doing ..
Read the basics of what are options
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
{ 3 comments… read them below or add one }
Do you sometimes think that the market index is going to rise? That you could make a profit by adopting a position on the index? After a good budget, or good corporate results, or the onset of a stable government, many people feel that the index would go up. In short, Options are nothing but giving the buyer the right to buy something on a future val date for the price which was pre-determined.
Finance blog, Finance, Economics, Corporate Finance, Personal Finance, Investing and Marketing
All investors, in the Stock Options Market, have the ability to generate cash every month, without much monitoring and by using simple options trading strategies that are easy to learn, manage, and execute.
MyInvestorsPlace – trading, value, investing, forex, stock, market, technical, analysis, systems
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Deborah
Term Life Insurance