Ratio Spread with Calls- Creating a Zero Downside Risk Strategy in Stock Market

Acta Universitatis Danubius: Oeconomica

关键词: Zero Downside Risk;    Nifty;    Options;    Ratio Spread with Calls (1x2);    Systematic Trading Plan;   

DOI  :  

来源: DOAJ

【 摘 要 】

There is a general perception that whenever a Stockgoes down, traders in that stock aredoomed. This was probably true before 2001, when derivatives were not introduced in the IndianStock Markets. Nowadays, there are many strategiesavailable in the derivatives segment, whicheither make huge amounts of money for the traders whenever the market goes down, or there is Zerorisk on the downside. One such strategy in optionssegment of derivatives is Ratio spread with Calls.This strategy has Zero Risk on the downside (with chosen strike prices and entry time), and if theMarket is mildly bullish, profits can also be madeon the upside. This Research paper examines theresults of Ratio spread with Calls as applied on Nifty in 42 monthly F&O series, with the aim tocreate a Zero Downside Risk Strategy which can be easily understood by even a beginner in StockMarket.

【 授权许可】

Unknown