Indian Journal of Finance

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Option Trading Strategies for Different Market Conditions for Hedging the Portfolio and Trading for Profits


Affiliations
1 MBA Student, M.S. Ramaiah Institute of Technology, Bangalore, India
2 Assistant Professor and Research Scholar, M.S. Ramaiah Institute of Technology, Bangalore, India
3 Professor & Director, Department of Management Studies, J.N.N. College of Engineering, Shimoga, Karnataka, India

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Derivatives are among the most complex financial instruments and also one of the most controversial. While they are as old as commerce itself, they have become prominent only in the last few decades. Their supporters say that derivatives improve risk management and increase liquidity. Their critics claim that they make markets less transparent and more prone to instability and speculation. Both sides would agree that derivatives are extremely important and have a big impact on other financial markets and the economy. So even if the average investor doesn't invest directly in derivatives, its important that he or she knows what they are.
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  • Option Trading Strategies for Different Market Conditions for Hedging the Portfolio and Trading for Profits

Abstract Views: 173  |  PDF Views: 0

Authors

Mohite Trupti Ramchandra
MBA Student, M.S. Ramaiah Institute of Technology, Bangalore, India
Y. M. Satish
Assistant Professor and Research Scholar, M.S. Ramaiah Institute of Technology, Bangalore, India
M. G. Krishnamurthy
Professor & Director, Department of Management Studies, J.N.N. College of Engineering, Shimoga, Karnataka, India

Abstract


Derivatives are among the most complex financial instruments and also one of the most controversial. While they are as old as commerce itself, they have become prominent only in the last few decades. Their supporters say that derivatives improve risk management and increase liquidity. Their critics claim that they make markets less transparent and more prone to instability and speculation. Both sides would agree that derivatives are extremely important and have a big impact on other financial markets and the economy. So even if the average investor doesn't invest directly in derivatives, its important that he or she knows what they are.