Hi Sir,

With regards to option stock, let's say for example, if I buy an option Call stock at a premium of 4 Rs and Lot Size of 2000 for a strike price of 100 and today's market price of that stock is 92. And tomorrow, if that stock's price goes to 94 and a premium of 5 Rs, then if I sell it at that premium price, I will get a profit of Rs 1 * 2000 = 2000 Rs. Basically, if the premium price of the option stock increases more than my bought price, then I don't need to wait for strike price to book profit? Is my understanding with regards to this option right?

If the above is incorrect, please correct it with an example.

Kind regards,
Indu

Sir,
What level can see downside in LIC Housing tomorrow if market will open negative ?

Hi Sir,

Supppose I sold x shares future today @ 185 and it is cumdividendand tommorow it will became exdividend @180, What will happn to my transaction? Is it a easy profit making by selling shares in future which are close to dividend date bye a day and buy tommorow at lower rate.

Hi CB & Kartik,

What is significance of dollar index, and how it's chart can be use to gauge the maket
direction esp nifty. As i have heard many time on CNBC from Udyan about the dollar index. Today also he made one statement on this "The dollar index has gone back to 79, which is not good news for any of us".
Please elaborate the above statement of Udyan's.

Thanks in advance,
Rakesh

Dear CB

What about jsw steel and VIP industries can i go short in both of them

with regards,
arisundar

Federal Reserve Chairman Ben S. Bernanke said the central bank stands ready to take additional steps to boost U.S. growth and cautioned lawmakers against budget moves that would harm a “sluggish” recovery.

The Fed “will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in a context of price stability,” Bernanke said today in testimony to Congress’s Joint Economic Committee in Washington.

The remarks signal Bernanke may not be finished after attempts in August and September to strengthen record monetary stimulus with unconventional tools. The central bank’s near-zero benchmark interest rate and $2.3 trillion of housing and government-debt purchases since 2008 have failed to produce self-sustaining growth in the economy and employment.

Lawmakers on the separate bipartisan congressional supercommittee charged with seeking $1.5 trillion in deficit reduction by Nov. 23 would take a “substantial step” by accomplishing that goal, Bernanke, 57, said in prepared remarks. At the same time, “more will be needed to achieve fiscal sustainability,” he said.

“A second important objective is to avoid fiscal actions that could impede the ongoing economic recovery,” Bernanke said. “Putting in place a credible plan for reducing future deficits over the longer term does not preclude attending to the implications of fiscal choices for the recovery in the near term,” he said, without being more specific.

hi kartik
us market on sharp recovery after the statement
regards

Hi Kartik, Where do you see the mkt ,this expiry pl?Perhaps ,it is wise not to trade ,till mkt settles. When do we get to know that it has settled , Which indicator to check..PL?