News about US markets and 1 Hr Techincal Analysis Video for each trading day

http://blog.rebeltraders.net/

This is a great blog for techincal analysis .... It involves all the patterns everyday ... 

According to him lows of the market would be retested which is not supported by majority

Expert Options

A very very good website with Screencasts on how to select different strikes and expiries for different Option Strategies... The website is a bit slow the wait is worth the patience
http://xpertoptions.com

Indian Markets Following Global Ques

In recent times Indian Markets are clsoing following Global counterparts (especially Nikkei: Asian Counterparts). Though all the research reports says that the martket for the feb is weak but (Nifty at current levels 2843.10) here I see we can see markets testing 2920 odd levels once this month. I strongly feel this because there is no real news flowing in Indian Economy so people are neither optimistic nor pessimistic because of domestic factors.

My View is market to remain rangebound in and 2700 - 2920. Don't ask for charts :-)

My Suggestion trade with swings because market is giving easy oppurtiunities to earn. So we can even earn using naked Call and Put.
~Chetan.

Sell 3100 Nifty call option

I think that selling 3100 call has very less risk as:

1) I dont expect the feb series for nifty to settle above 3100.

2) The chances of nifty to gain more than 10% from current level of 2780 in the current series appear to be low.

If we sell 3100 call arnd rs 15 (cmp: 13) we can get abt 750 per lot, the amount blocked as margin wud be arnd 25k. Total cash as on date is arnd 78k, so still we wud have 53k left for trading. 

Also there is no point thinking to sell out of money options near expiry as we have seen that at that time we can hardly get any premium.

The return of rs 750 on 25k blocked appears as meagre but the probablity of getting this trade right is quite high which implies tht money earned wud be at min risk. Also uptil now we have never used entire fund amt for trade, there's no point keeping the money in bank where we just fetch a monthly interest on the unused money for trades.

Interest earned on money in savings bank account is abt 5% p.a.

So on 25k monthly interest earned wud be arnd  rs 104.........by selling this call, effectively with min risk we r getting rs 750 instead of rs 104.

ABC Case Study Link

http://web.mit.edu/ctpid/lara/pdfs/abccasestudy.pdf

Cash Breakeven Point

Cash Breakeven Point = (fixed costs - depreciation) / contribution margin per unit.
The cash breakeven point indicates the minimum amount of sales required to contribute to a positive cash flow.

Activity Based Costing

Activity-Based Costing (ABC) is a costing model that identifies activities in an organization and assigns the cost of each activity resource to products and services according to the actual consumption by each in order to generate the actual cost of products and services for the purpose of elimination of unprofitable and lowering prices of overpriced ones. In a business organization, the ABC methodology assigns an organization's resource costs through activities to the products and services provided to its customers. It is generally used as a tool for understanding product and customer cost and profitability. As such, ABC has predominantly been used to support strategic decisions such as pricing, outsourcing and identification and measurement of process improvement initiatives.

Methodology
Cost center
Cost allocation
Fixed cost
Variable cost
Cost driver
Direct labour and materials are relatively easy to trace directly to products, but it is more difficult to directly allocate indirect costs to products. Where products use common resources differently, some sort of weighting is needed in the cost allocation process. The measure of the use of a shared activity by each of the products is known as the cost driver. For example, the cost of the activity of bank tellers can be ascribed to each product by measuring how long each product's transactions takes at the counter and then by measuring the number of each type of transaction.

Limitations
Even in activity-based costing, some overhead costs are difficult to assign to products and customers, for example the chief executive's salary. These costs are termed 'business sustaining' and are not assigned to products and customers because there is no meaningful method. This lump of unallocated overhead costs must nevertheless be met by contributions from each of the products, but it is not as large as the overhead costs before ABC is employed.
Although some may argue that costs untraceable to activities should be "arbitrarily allocated" to products, it is important to realize that the only purpose of ABC is to provide information to management. Therefore, there is no reason to assign any cost in an arbitrary manner.