Introduction

Honasa Consumer Pvt Ltd. manufactures and sells baby care products. It engages in the business of trading beauty and personal care products and related services with products across baby care, skin care, hair and other personal care categories. Its brands include Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, Dr. Sheth's, BBlunt Salons and Momspresso. The company was founded by Varun Alagh and Ghazal Alagh on September 16, 2016, and is headquartered in Gurugram, India.

Observation

Stock trade on 20 week EMA with open marubozu with hug volume and good RSI. Stock making HL it can retracement till my given level on the chart for better upside move

10-day series (Day 7)

What is measure of sensitivity Beta and Delta? 🤔

Here is the advance answer with example 👇

Measure of sensitivity Beta and Delta

Beta and Delta are two important measures used in finance to understand the sensitivity of an investment or option relative to certain factors. Let's explore each with examples.

1. Beta (β)

Definition: Beta measures the sensitivity of a stock's returns relative to the returns of a benchmark index (usually a market index like the S&P 500). It indicates how much the stock price will move in relation to the market.

• Beta = 1: The stock's price is expected to move with the market.
• Beta > 1: The stock is more volatile than the market. If the market goes up by 1%, the stock might go up by more than 1%.
• Beta < 1: The stock is less volatile than the market. If the market goes up by 1%, the stock might go up by less than 1%.
• Beta < 0: The stock moves inversely to the market.

Example:
Consider two stocks: Stock A with a Beta of 1.5 and Stock B with a Beta of 0.8. If the market (e.g., Nifty 50) rises by 10%, Stock A is expected to rise by 15% (1.5 * 10%), while Stock B is expected to rise by 8% (0.8 * 10%). Conversely, if the market falls by 10%, Stock A might fall by 15%, and Stock B might fall by 8%.

2. Delta (Δ)

Definition: Delta measures the sensitivity of an option's price to changes in the price of the underlying asset. It represents the rate of change of the option's price with respect to the price of the underlying asset.

• Delta for Call Options: Ranges from 0 to 1.
• Delta for Put Options: Ranges from -1 to 0.
• Delta = 0.5: If the underlying asset's price increases by ₹1, the option's price is expected to increase by ₹0.50.

Example:
Consider a call option with a Delta of 0.6. If the underlying stock's price increases by ₹10, the price of the call option is expected to increase by ₹6 (0.6 * ₹10). Similarly, if the stock price decreases by ₹10, the call option's price is expected to decrease by ₹6.

For a Put Option with a Delta of -0.4: If the underlying stock's price increases by ₹10, the price of the put option would decrease by ₹4 (-0.4 * ₹10). If the stock price decreases by ₹10, the put option's price would increase by ₹4.

Summary

• Beta: Sensitivity of a stock relative to the overall market.
• Delta: Sensitivity of an option's price relative to the underlying asset's price.

Both measures help investors and traders understand potential risks and rewards in different market conditions.

Let's touch fundamentals

1. Tata Consultancy IT services provider a new TCS Pace Studio in Manila, Philippines, which allows TCS to co-innovate with customers and develop technology solutions specific requirements in the Asia Pacific region, according to a Tuesday filing to the stock exchanges.

2. HCL Technologies surged over 2 percent to reach a new all-time high of Rs 1,757 apiece on August 27. This uptick came after the company announced an extension of its AI-driven engineering services and digital process operations partnership with Xerox. Under this partnership, HCL Technologies will assist Xerox with foundational and structural design efforts aimed at positioning the company for long-term, profitable, and sustainable growth.

3. India's Bank of Baroda has accepted bids worth 50 billion rupees ($596.4 million) (₹4,899 crore in Indian rupees) for infrastructure bonds maturing in 10 years, three bankers said on Monday.The state-run bank had invited coupon and commitment bids from bankers and investors earlier in the day.In December, Bank of Baroda raised 50 billion rupees via 10-year infrastructure bonds at a coupon of 7.68%.Here is the list of deals reported so far on Aug. 26:

Educational content

Tue Aug 27, 2024