Discover and read the best of Twitter Threads about #arbitrage

Most recents (3)

#Day #Trading #Options

#Basic Concept - options day trading focuses only on the underlying #mathematics. It does not rely on any #financial predictions, company results, or market direction.
A #realistic approach is to take advantage of occasional pricing inefficiencies that arise in the #options market.
These #distortions can be related to #earnings announcements, expiry week, weekend #theta decay, intraday implied #volatility swings, differences between overnight and #intraday volatility, or news and #rumors.
Read 22 tweets
Thread: Inflow / Outflow Analysis - May 2020
Net flows for MFs turned positive for the 2nd straight month in May 2020. Strong #inflows in debt oriented open-ended schemes, mainly #Liquid and Banking and PSU funds, continued to support the industry. (1/8)
Also, UST, Low duration, Money market, Short duration, and Medium to long duration funds contributed to the inflows this time. #Arbitrage funds under the #Hybrid category pitched in, too. In fact, net flows for the Hybrid category marked a 14-month high. (2/8)
It is commendable that under the current tough circumstances, industry’s net inflows in May increased 54% to Rs. 70,813 crore sequentially, marking a 4-month high. Maximum net outflows were seen in Overnight funds that somewhat took the sheen away from the flows. (3/8)
Read 8 tweets
#Options vs #Futures

Although both are #derivatives, Futures and Options are entirely different in terms of their potential #risk and #return , #leverage and how they work.

How different are futures and options?
#Rights vs #Obligations

In #Futures Trading, both the buyer & the seller are #obligated to settle the contracts on or before expiry ie cover shorts or longs or rollover to next contract, regardless of how the underlying asset price moves.
With #Options the buyer has the #Right, but not the #Obligation, to buy (call option) or sell (put option) on underlying asset. The option seller is #passive and must comply with whatever the option buyer does.
Read 13 tweets

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