its acid

Second phase

SAURABH MISHRA — Wed, 04 Jun 2008 13:53:42 +0000

We stopped active trading in options from Feb.08. In the fall of January and following moths we saved our capital base.Our risk management was effective and seed guaranteed scheme had the effect that none of our investors lost even a single rupee in the market crash.

Closure of active trading was needed because traded volume was very low and that meant we had to trade heavily in index options,as there were very less opportunities to trade in stock options.Trading in one underlying means unmanagable risk.Hence we waited for the market to return to its normal volume.

At present economic factors are not very promising yet market has seen good volume in stock options.This is the time we start trading again and take the benefit of making an early move.

We are taking fresh investment in too.Those of you who agree with our work ethics and support the view that options trading is riskless and profitable are invited to join hands with us.

November’07

SAURABH MISHRA — Mon, 03 Dec 2007 05:18:12 +0000

We completed fourth month of trading on 30-11-07.This has been the best month so far.We booked 116% gross profit on traded capital.This will pass on to investors as 92.8% net average return in one month.With the ending of November we have also become a million Rupee fund.Total AUM under Acid has crossed Rupee One million level.We thank and congratulate our investors for the faith they have shown in our venture.Market in November was not very happening as most of the time it was moving within a range.Still there is no fixed direction for future status of nifty.
The uncertain moves of index gives a good chance of profit booking if you can chose the right call and put strikes.In single stock options there were some very very good movers like RNRl and Powergrid.We booked a major share of our total profit from stock options.

For the month of December it is not sure which way this market will move but volatility will be sufficient for us to make profit again.

Know Us

SAURABH MISHRA — Mon, 15 Oct 2007 14:39:44 +0000

WHAT WE DO..
At Indulge Derivatives we tradein financial options on NSE.We collect investment for our fund called ‘Acid’.This investment is then used for trading in options.We don’t have a buy-hold-sell pattern in our trading.We do short term and mostly intraday trading.This is done till the last Friday of the month.Net earned profits are divided among investors in proportion to their share of investment in the fund.
Our investors are encouraged to keep their profits with us.This way we increase our capital base and also fresh investors are introduced each month.So our AUM increases each month and so does the profit and individual share of investors.

WHAT WE DELIVER…
We deliver risk-neutral investment solution,because we handle the market risk and make your investments meet your expectations.

WHY INDULGE…
Derivatives are also known as financial weapons of mass destruction but nobody can deny their unlimited profit potential.A single investor needs to have big amount of money along with considerable academic skill in derivatives,high risk appetite and lot of free time to trade in options or else he can Indulge.
‘Acid fund’ is presumably the only fund dedicated to options.It is professionally managed and transparent in all its dealings.So you can enjoy sweet dreams while your investment touches the sky.

Know Option

SAURABH MISHRA — Mon, 15 Oct 2007 14:26:20 +0000

An option gives a person a right but not the obligation to buy or sell something.An options is a contract between to parties wherein the buyer receives a privilege for which he pays a fee(premium) and seller accepts an obligation for which he receives a fee(premium).The premium is the price negotiated and set when the option is bought or sold. source: National stock exchange

The premium of an option is decided by market forces.In other words,any option can be taken as a stock for which there are buyers and sellers and based on their demand and supply price of option is determined.Hence options are traded like other stocks on exchange.

S&P CNX NIFTY OPTIONS
NSE introduced trading on index options on june4,2001.The option contracts are European style and cash settled and are based on the popular market benchmark S&P cnx nifty index.Index options are most traded options in Indian market.

Index options follow the moves of nifty-fifty index.We track the index and predict its future status and accordingly identify which option strike will receive maximum attention from traders.The key to profit making trading is in identifying the right strike at the right time and price.If our decisions prove right we make profit otherwise the lost amount is only the premium which is actually very less than the notional value of a contract.

STOCK OPTIONS
NSE became the first exchange to launch trading in options on individual securities from july2,2001.Option contracts are American style and cash settled and are available on 207 securities stipulated by SEBI.

Stock options are not as much used as index options but they are fast catching up.The basics of profit making trading stock option remains the same as in index options.Stock options are easier to make profit from but they block higher amount of capital as premium.

To read more on my view on options trading go here-
http://saurabhmishra.wordpress.com/category/derivatives/

Test Drive

SAURABH MISHRA — Mon, 15 Oct 2007 14:24:42 +0000

Let us give an example of how it works.Suppose nifty is at 5600 points and we expect it to go higher in coming days so we buy a call option that costs us,say,Rs.10000(premium).Now if nifty goes this call option will gain in its price and we get to sell it at a price higher than we bought it.In case nifty falls this call option will lose its value.But no matter how deep the price goes we are not going to lose anything more than Rs.10000.So you can see that our upside profit potential is unlimited but downside loss is fixed.In falling market put option makes money so you get to use both the sides of the market movement for profit.These are the privileges you have only with derivatives trading.

Know Risk

SAURABH MISHRA — Mon, 15 Oct 2007 13:54:22 +0000

Derivatives are created for risk management so they are not as risky as equity or other investments.With proper knowledge of derivatives and some common sense one can easily make money in derivatives.So we don’t ask our investors to face the ‘market risk’ and ‘be careful before investing’.We are not mutul fund.

We at Indulge Derivatives are proud to commit ourselves to provide safety to your investments.We have a ‘SEED GUARANTEED’ service for our investors.(read terms & conditions) .

Terms and Conditions

SAURABH MISHRA — Mon, 15 Oct 2007 13:48:27 +0000

The minimum amount we take from an investor is Rs.15000.Beyond this limit the investment has to be in multiples of Rs.5000.There is no upper limit on investment.
Under ‘seed guaranteed’ scheme we guarantee the seed capital be safe under all circumstances.Investor will not lose his seed capital.It means his profit potential is unlimited and risk is NIL.
‘Seed guarantee’ is given to only those investors who have invested more than Rs.25000 with us and who have not withdrawn their profit or capital for at least three months.
Investments can be transferred to us via net-banking,cheque,demand draft or in cash.Detailed guidelines on this transaction are given once we receive a communication of intent from the investor.
There is no entry or exit fee on investment.
Performance sheet of ‘Acid fund’ is sent to each investor on his/her e-mail id on the last Saturday of the month.It will contain all necessary information about our fund’s performance and investor’s financial status with us.Any additional information will be given based on the requirements of each investor individually.
We keep looking for innovative ways to serve our investor for their benefit.So any new decision taken by us will be posted on this blog.We suppose all our investors are comfortable with this mode of communication.

September’07

SAURABH MISHRA — Sat, 06 Oct 2007 04:02:03 +0000

27-09-07 was when we closed our second month’s trading with gross returns of 50%.September started slow with almost no moves on index because there were some concerns about American and European economies after sub-prime crisis.Trading picked up after 19th when Fed came out with its rate policy.Last two weeks of the month were very high on volume and liquidity which gave movement to market and profits to us.
The jump in returns from 40 to 50% was achieved by trading in stock and index options.As index was not moving much in first two weeks stock options were better.September has been a good month for most investors but Indulge Derivatives has earned returns that are higher than market returns and any other mutual fund’s returns.We continue to outdo others.

August 07

SAURABH MISHRA — Sat, 01 Sep 2007 12:22:27 +0000

Indulge derivatives completed it’s first month of trading on 30-08-07.To date we have earned a return of 40% in one month.This outperforms ALL mutual fund in the month of august.There was huge volatility seen in market in august because of sub-prime crisis and some adverse domestic political news.This volatility is bad for a stock trader but good for a derivatives trader.As we trade only in options we utilised the volatility for our shareholer’s benefit.

Current derivatives series will expire on 27-09-07,and we are targeting at a return of 50% by that time.For more information on our fund you can contact us by an e-mail.