RK INVESTMENT

Share Market Study  - Moneyness ( Episode - 06)              Moneyness is a term commonly used in finance and options trading to describe the relationship between the strike price of an option and the current price of the underlying asset. It helps determine the intrinsic value of an option and provides insights into its potential profitability. In options trading, an option gives the holder the right, but not the obligation, to buy or sell the underlying asset at a predetermined price, known as the strike price, within a specified period. Moneyness categorizes options into three main categories: 1) In-the-money (ITM): An option is considered in-the-money when the strike price is favorable for the holder. For a call option (the right to buy), it is in-the-money when the current price of the underlying asset is higher than the strike price. Conversely, for a put option (the right to sell), it is in-the-money when the current price of th...

Call Option and Put Option when Buy ?  Investors may choose to buy call and put options for various reasons, depending on their market outlook and investment strategies. Here are some common scenarios when investors might consider buying call or put options: Buying Call Options: a. Bullish Outlook: If an investor is optimistic about the price of an underlying asset and expects it to rise, they may choose to buy call options. By purchasing call options, they can potentially profit from the upward price movement of the asset while limiting their risk to the premium paid for the options. b. Speculation: Traders may buy call options with the intention of profiting from short-term price fluctuations. This strategy allows them to control a larger position in the asset while investing a smaller amount upfront. c. Hedging: Investors who hold a long position in an underlying asset may buy call options as a form of portfolio protection. If the asset's price declines, the gains fr...

Share Market Study - Chart Patter n ( Episode 04 )          Chart patterns are visual patterns that appear on price charts of financial instruments, such as stocks, currencies, or commodities. These patterns are formed by the price movements of the instrument over a certain period of time and are used by technical analysts to make predictions about future price movements. Here are some common chart patterns: Head and Shoulders: This pattern consists of three peaks, with the middle peak being the highest (the head) and the other two peaks (the shoulders) being lower. It is considered a bearish reversal pattern, indicating that the price may reverse its upward trend. Double Top/Double Bottom: A double top pattern occurs when the price reaches a high level, pulls back, rallies again to a similar high, and then declines. Conversely, a double bottom pattern occurs when the price reaches a low level, bounces back, declines again to a similar low, and then rises. Th...

Share Market Study - Type Of Candel ( Episode 03 )       Candlestick patterns are graphical representations of price movements in financial markets, commonly used in technical analysis to predict future price movements. They are formed by the open, high, low, and close prices of a specific time period, typically depicted as candlesticks on a price chart. Each candlestick represents a specific time period, such as a day, week, or hour, and consists of a rectangular body and thin lines, known as shadows or wicks, extending above and below the body. The body represents the price range between the open and close, while the shadows indicate the high and low prices during that period.   There are various candlestick patterns used in technical analysis to analyze price movements in financial markets. Here are some common types of candlestick patterns: Doji: A doji is a candlestick pattern where the opening and closing prices are very close or equal, resulting in a small ...

 How to Read candel Reading candlestick patterns is an essential skill in technical analysis used to analyze price movements in financial markets. Here are the basic steps to interpret candlestick patterns: Understand the components: Each candlestick represents a specific time period, such as one minute, one hour, one day, etc. It consists of four main parts: the open, close, high, and low prices. Open : The price at the beginning of the time period. Close : The price at the end of the time period. High : The highest price reached during the time period. Low : The lowest price reached during the time period. Recognize bullish and bearish candles: Candlesticks can be classified as bullish or bearish based on their color and position. Bullish candle (also called an up candle) : The close price is higher than the open price. It is typically represented by a white or green body. Bearish candle (also called a down candle) : The close price is lower than the open price. It is usually re...

Share Market Study  - Type Of Chart (Episode 01)           There are several types of charts used in financial analysis and technical analysis. Here are some commonly used chart types: 1 - Line Chart: A line chart is the most basic type of chart, depicting the closing prices of an asset over a specific time period. It connects the closing prices with a line, providing a simple visual representation of price trends. 2 - Bar Chart: A bar chart displays price information using vertical bars. Each bar represents a specific time period (e.g., a day, a week), and it shows the high, low, opening, and closing prices for that period. The vertical line represents the price range between the high and low, while horizontal lines indicate the opening and closing prices. 3 - Candlestick Chart: Candlestick charts are similar to bar charts but provide more detailed information. Each candlestick represents a specific time period and displays the high, low, opening, and ...