Discover and read the best of Twitter Threads about #timevalue

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#ITM Vs #OTM #Options Which to #BUY?

When selecting the right #option to #buy, a #trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option.
While the goal for "#vanilla" #buyers is to have the option be in the money at expiration, the selected option depends on the amount the trader wants to spend and their risk tolerance, as well as their specific expectations for the underlying stock.
UNDERSTANDING #ITM Vs #OTM

Before delving into the pros and cons of each, let's look at what it means to be itm or otm.
A #call is ITM when the underlying stock is trading above the strike price.
Conversely it is OTM when the underlying stock is trading below the strike price
Read 16 tweets
Thread on the @KotakMF #FMP saga; Attn: @IndiaSebi

Highlight is on an #AMC which, in an FMP, considers it #prudent to reduce the risk, of an asset, by accepting a riskier asset as #security; knowing, the first asset shall mature with the FMP, giving no time to act if defaulted.
We reserve further comment. We shall just answer few questions raised by #investors.

1. FMP has a #fixedhorizon, at the end of which investors expect their money back. Also, they expect not to lose money. Knowing these expectations, who decided to launch the FMP?
Ans:Kotak AMC
2. A high #yield #portfolio may be made in many ways. Risk can be protected by structuring deal in many ways. Who made a portfolio of high #coupon/yield (11%) #debt instruments by lending upto 40% to #borrowers against security of their companies #equity #shares?
Ans: Kotak AMC
Read 23 tweets

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