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Messages posted by: jiwant (IV0743501)
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Is US FED QE tapering good for precious metals or not?
As the prices of gold has fallen down to 27 k it looks attractive. It is good time to invest in gold but invest with proper strategies and for longer term. In near terms price may fluctuates.
Dear sunny As you know that at ATM all the option exercised they will provide zero returns . Therefore if option expires at ATM all option expires worthless.
Well this a good observation. Theoretically, Call premium is directly proportional to interest rate and put premium is inversely proportional to rate of interest so therefore At the ATM Delta of Call is always greater than premium of put option.
There are several reasons for the same:
1 Crude and gold has inverse relation with equity market. US equity market has started to do well by posting highest growth in last quarter since 2008 slow down.
2 China growth rate has slow down and come to lowest, hence demand of crude has fallen down drastically.
3 US has discovered the substitutes of crude oil.
4 Rally in the price of gold comes to end after going up for last 5 years continually.
The uploaded graph in reverse order. 1st one is final payoff graph.
Hi I have submitted the graph.
I am unable to upload pay off chart along with excel sheet.
22-Apr-13 NIFTY13APR5700CE NFO 100 -10910 0 109.1
NIFTY13APR5800CE NFO -200 7500 37.5
NIFTY13APR5900CE NFO 100 -725 0 7.25
NIFTY13APR5800PE NFQ 100 -2135 21.35

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