Going to home

Going to home after a year, is something always very exciting. Last year we just planed and planned but nothing materialized. I hope this time it would be as per the plan and schedule. My wife is staying away from her parents for such a long time for the first time. So she must more excited than me. This time again I will attend the “Jamai Sosthi” at her house. This will my second time. Last year was my first time and I enjoyed the ceremony a lot. I hope I am not still old for them :) .... after all its only the second time.
Last year we had participated in a TV game named “Rojgera Ginni”. That game show actually is about husband-wife. My wife contacted with them and they had actually arranged the same in a quite a short notice. I must say she has quite a quality to do something if she decided and convinced.
After getting my job in Infosys when first time I returned home during Puja, I think that was the best “Returning Home” experience of mine. We were four people Me, Bap, Hilu and Avik. And I remember we had a great train journey. That time such was the excitement that the two and half a days of journey was not at all a boring one. I remember, as soon as I reached home I just had some food and went out of home with friends to visit Puja Mandaps. It was just like I returned home from my college and go out with my friends to have fun. But now all my friends at Berhampore are scattered everywhere for their job purpose and I know I won't able to find all of them whenever I will go to my birth place. Hence it is true that for me, the returning home thing is not any more that more attractive.
Now returning home means to me nostalgia of my house at Berhampore. And ofcourse the foods from my ma's kitchen. Also I would visit my neighbors. My ma gets very happy if give sometime to her to visit her neighbors. And to me it's a duty also because it's her neighbors only who used to take care of my parents when I have to leave in a place which is quite a distant from them.

हिन्दी ब्लोग्गिंग

इ मेरा पहला हिन्दी ब्लॉग हेई । अच्छा लगा के अब हम हमारी निजी भासा में भी ब्लॉग कर सक ते हेई। गूगल इ से पहले बही एईस तर के की सरे सुबिधइए दे चुके हेई। और इ सी लिए सयद गूगल दुनिएया में सबसे जयादा पोपुलर हेई। कभी कभी इंग्लिश में अपना चिंता को जाहिर करना थोरा मुल्स्किल हो जाता हेई। कु के आपनी मत्री भासा में कोइए भी बिचार लिखना हमेसा जायद आसान होता हेई।
अभिभादन देना चाहूँगा गूगल को इस के लिए।
पल्लब

IPL (Indian Premier League)

IPL definitely marks a new beginning of an era of cricket where games goes short-crisp and fast. This format is a huge hit at list this point of time and I think this will be the future of cricket. Now there was a lot of debate before the tournament starts or even after it got kicked off about the effect of this cricket "Tamasha" on the present forms of the game. I think this is not going to affect the test cricket which is the mother form of all. But definitely this will mark the end of the attraction of one day cricket. Simply because, one day format was made to make Cricket short from the test format but, now people have even less time to watch a full one-day game. So T20 is appropriate for the present generation. In the disadvantage front, I think this will erode out playing skill as T20 requires making run fast. Also T20 means a lot of cricket would be played now in the year. So players should be more cautious now so that they do not play in excessive matches in the lure of money. Yes, this money aspect is also going to affect cricket now. After the IPL auction of players, people were actually shocked to see how much money poured in cricket. This will no doubt make this sport even more popular. And the cricketers will surely get their due now. Even in the lighter note I think, parents now motivate their children to get into this sport more than the "study hard" stuff. So this generation of boys would have a better life than us for sure :) They will play more Crickets and get a good chance to make their carrier in cricket.

Straddle Fundas

Long straddle
An option payoff diagram for a long straddle position
An option payoff diagram for a long straddle position

A long straddle involves going long, purchasing, both a call option and a put option on some stock, interest rate, index or other underlying. The two options are bought at the same strike price and expire at the same time. The owner of a long straddle makes a profit if the underlying price moves a long way from the strike price, either above or below. Thus, an investor may take a long straddle position if he thinks the market is highly volatile, but does not know in which direction it is going to move. This position is a limited risk, since the most a purchaser may lose is the cost of both options. At the same time, there is unlimited profit potential, since the change of the underlying price of any option is unlimited.[1]

For example, company XYZ is set to release its quarterly financial results in two weeks. A trader believes that the release of these results will cause a large movement in the price of XYZ's stock, but does not know whether the price will go up or down. He can enter into a long straddle, where he gets a profit no matter which way the price of XYZ stock moves, if the price changes enough either way. If the price goes up enough, he uses the call option and ignores the put option. If the price goes down, he uses the put option and ignores the call option. If the price does not change enough, he loses.

Short straddle
An option payoff diagram for a short straddle position
An option payoff diagram for a short straddle position

A short straddle is a non-directional options trading strategy that involves simultaneously selling a put and a call of the same underlying security, strike price and expiration date. The profit is limited to the premiums of the put and call, but it is risky if the underlying security's price goes up or down much. The deal breaks even if the intrinsic value of the put or the call equals the sum of the premiums of the put and call. This strategy is called "nondirectional" because the short straddle profits when the underlying security changes little in price before the expiration of the straddle. The short straddle can also be classified as a credit spread because the sale of the short straddle results in a credit of the premiums of the put and call.

A short straddle position is highly risky, because the potential loss is unlimited, whereas profitability is limited to the premium gained by the initial sale of the options.

The collar

The Collar is a more conservative "opposite" that limits gains and losses.

As a volatility strategy

By engaging in a straddle transaction, the investor is also taking a position on the volatility of the underlying security. Going long a straddle is a bet that the underlier will be more volatile over the straddle's term than predicted by the market. Conversely, going short a straddle is a bet that the underlier will be less volatile. To see this, assume that the investor frequently re-hedges his portfolio with the underlier to keep his portfolio delta neutral. Because delta for an option is a monotonically increasing function of the underlier's price, one can quickly see that large underlier movements help the investor who is long a straddle. When the underlier's price goes up, the total delta of the straddle goes up as well, and the investor will need to sell the underlier to maintain a delta neutral portfolio. When the underlier goes down, the investor will need to buy the underlier. Hence, lots of movement in the underlier, or volatility, causes the investor to gain from his hedging transactions - he will always need to buy when the underlier is low and sell when high. In the same way, an investor with a short straddle will face the opposite situation - he will have to buy high and sell low when the underlier's price is moving. For investors with a view on the future volatility of a particular underlier, a straddle (or, for that matter, any option in general) can be a way to implement that view. Recently, the development of variance swaps allows investors to trade volatility directly without the need for constant delta hedging. For a further discussion of this style of investing, see volatility arbitrage.

Strangles

A strangle is an options strategy similar to a straddle, but with different strike prices on the call and put options. This is used to bias the profitability of the strategy towards one particular direction of price movement in the underlying, while still offering some (reduced) protection against a movement in the other direction.

For example, the trader in the example above might enter into a strangle if he believes that XYZ's financial statement will probably be positive, but he is not certain and still wants to hedge some of the risk of a negative statement (and is willing to pay for this privilege.)

Nick Leeson and the Barings Bank collapse

Nick Leeson took short straddle positions when chasing losses he had run up for his employer, Barings Bank. He had initially invested in futures on the Nikkei 225 stock index. Following a dramatic fall in the market, largely due to the Kobe earthquake, Leeson lost millions. He tried to re-coup these losses by investing in the higher risk, but potentially more rewarding, straddles. He bet that the Nikkei would stabilise and stay in a range around 19,000. His bet failed and losses escalated to $1.4bn, causing the bankruptcy of Barings.