What a day it turned out to be. The Sensex shot through the 8000 mark very early in the day and continued its journey to end up 105 points. Closing at a record ( again!) 8052. Some wonderful profits taken I hope. The question is how do we profit from such a bullish but overheated market without much risk? Options ofcourse.
Nothing holds more true than the limited risk that options offer to play such a market. We can ride the markets and its upmove, at the same time with limited risk to our capital.
I personally feel it is better to avoid entering directly into the equity market at this stage, the downside could hurt badly. Also it would be better to park your money into less risky instruments and use some money/profits to trade options. But then as always it is for the person involved to decide.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment