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128 ArticlesPrashanth Krishna

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Nifty Gaps and future Returns

With BJP trouncing the opposition in Uttar Pradesh, the markets opened with a gap on the opening bell. A gap is simply an open either higher than a previous ...
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Fake News in Stocks: Of Signal, Noise and Bias

In April of 2013, the Associated Press twitter handle was hacked and a tweet went out which claimed that the President was injured in a bomb attack on the ...
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Missing The Big Moves and The Difference It Makes To The End Result

How often do you hear this: Only 40 days have contributed to the total gains of the S&P index since inception! So, missing those days can have a massive ...
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Bond Baba: How Do You Evaluate A Buyback For Arbitrage?

For more than a year, we have showcased Arbitrages through buy back of equity shares by listed companies. The arbitrage comes into play because of ...
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Premium: Markets Are Hot, Where Do We Go Next?

Markets have been on a roll for quite some time now even though the economy isn’t exactly in great shape. Prior to the 2008 Financial Crisis market crash, ...
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Uncle Theta: Introduction to LEAP Options, Part III – Selling Options and Using Collars

In Part I of this series, we were introduced to the nuances concerning options as well as how options are priced and explanations of the various Greeks and why ...
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TCS announces buyback of Shares. Is it worth the Arb for Small Retail Investors?

On 16th February 2017, TCS announced that its board will meet on 20th February 2017 to consider a buyback of shares. The stock opened gap up and closed at ...
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Uncle Theta: Introduction to LEAP Options, Part – II

Now that we have a fair understanding of the nuances of what options are and what are the factors that influence their pricing and movement, let’s move ahead ...
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Uncle Theta: Introduction to LEAP Options, Part – I

Long Term Options on the Nifty. These are Long-term Equity Anticipation Securities or simply called LEAP Options. They just have much more time to maturity ...
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The BuyBack Bonanza and What it Means For A Long Term Shareholder?

In the Budget of 1997, the then Finance Minister P. Chidambaram abolished taxation of dividends in the hands of the shareholder and instead enacted the ...
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