Ashesh Mathur (Individual Contributor) 
What is the iron butterfly strategy? The short iron butterfly is an options trading strategy that involves the use of both call options and put options. The strategy is created by combining a bear call spread with a bull put spread with an identical expiration date that converges at a middle strike price. Ideally, you want … Read more
The Iron condor is a limited risk, non-directional option trading strategy designed to have a significant probability of earning a small limited profit when the underlying security is perceived to have low volatility. The iron condor strategy can also be visualized as a combination of a bull put spread and a bear call spread. Construction … Read more
From both a mathematical and emotional perspective, large losses have a much larger impact than large gains on the probability that you will achieve your long-term investing goals. Hence, risk management can quickly become a gamble if models are not understood and the complexity of dependencies and their impact on risk is underestimated. Portfolio risk … Read more
What is the Capitalization of Earnings Method? The Capitalization of Earnings Method is an income-oriented approach. This method is used to value a business based on the future estimated benefits, normally using some measure of earnings or cash flows to be generated by the company. These estimated future benefits are then capitalized using an appropriate … Read more
A firm’s Weighted Average Cost of Capital (WACC) represents its blended cost of capital across all sources, including common shares, preferred shares, and debt. The cost of each type of capital is weighted by its percentage of total capital and they are added together. In this article, we will try to understand what is WACC, … Read more
Imagine what happens when the buyer or seller has more information than the other? Well, in that case, the law of supply and demand doesn’t work as expected as the price of assets is skewed. More simply put it can lead to market failure. This imperfect knowledge with one party is called information asymmetry. Understanding … Read more
As COVID-19 is forcing people to find new ways to connect, work, and live from home, tech penny stocks are finding renewed interest among the traders. We all know the big rise in the stock prices of Amazon, Tesla, and Apple from the past year. But if you are trading with a small account then … Read more
How does one go about finding the best options to buy? What parameters do you have to look at while finding the top options for you? Do you just find the most active options to bet on in the market? Let’s take a look. Successful options trading requires you to have a talent for prediction. … Read more
Implied volatility helps investors gauge future market volatility. It has a positive correlation with the expectation of stock price and is one of the six parameters used to determine the price of an option. As an options trader, implied volatility is one of the most important factors to be kept in mind while trading. It … Read more
Delta neutral strategies are options strategies that are designed to create positions that aren’t likely to be affected by small movements in the price of a security. This is achieved by ensuring that the overall delta value of a position is as close to zero as possible. Before moving forward click here for a quick … Read more
