❎Stagflation is a period of rising inflation but falling output and rising unemployment.
❎Stagflation is often a period of falling real incomes as wages struggle to keep up with rising prices.
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❎Stagflation is often caused by a rise in the price of commodities, such as oil. it occurred in the 1970s following the tripling in the price of oil.
❎A degree of stagflation occurred in 2008, following the rise in the price of oil and the start of the global recession.
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❎Stagflation is difficult for policy makers. For example, the Central Bank can increase interest rates to reduce inflation or cut interest rates to reduce unemployment. But, they can’t tackle both inflation and unemployment at the same time.
This #strategy involves two options of same strikes price & same expiry, A long straddle is created by buying a call and a put of same strike & same expiry whereas a short straddle is created by shorting a call & put option of same strike & same expiry
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Let us say a #stock is trading at Rs 6,000 and premiums for ATM call and put options are 257 and 136 respectively.
Long #Straddle
If you buys both a call & a put at these prices, then his maximum loss will be equal to the sum of these two premiums paid, which is equal to 393
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And, price movement from here in either direction would first result in that person recovering his premium and then making profit. This position is undertaken when trader’s view on price of the underlying is uncertain but he thinks that in whatever direction the market moves
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Most of the people are market-averse when it comes to investing their hard-earned money in it. The primary and most significant reason for this is the fear of loss of money.
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More often than not, this fear stems from the lack of knowledge surrounding #Markets. In this thread, we try to overcome this fear of investing in #StockMarket by following some easy steps
Here are some of the things you can do to get rid of your fear of investing in stocks
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1. Gain Knowledge of Stock Markets:
Start by educating yourself with the basic concepts related to stock markets and how do they work. You can reduce your investing risk significantly by understanding the basic #fundamentals, which are not as tough as you think.
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