Structurally June 2020 series is having a monthly gap and that is a bearish odds which brings the possibility of Nifty Futures testing sub 9600 levels to close the gap. The monthly gap is primarily created post the announcement of GDP data.
Thought of compiling the margin requirement for various Nifty Futures and Options Trading Strategies as New Margin Trading Framework for Futures and Options Trading is likely to be effective from 1st June 2020 onwards.
In this tutorial, we covered detailed indepth insights on the current market structure and the outlook for June 2020. Also New Margin Framework which is likely to be implemented from June 1st 2020 onwards is discussed and how the new margin framework benefits hedged strategies is explained in detailed manner.
Here is a tutorial on Option Analysis Tool – Option Action which helps options traders to Design, Create & Monitor Option Trading Strategies.
Market Investors always posses market expectations/anticipations. Not every time the market expectations are turning out to be the realized in any given month. But there are times the market expectations combined with market participation does develop accelerating long term maniac trends.
Bullish Diagonal Call spread is neutral to a bullish strategy which is executed by buying long-dated in the money call option and concurrently selling short-dated out of the money call option. It is a synthetic replication of a covered call strategy.
On 12th May 2020, Vedanta India came up with a delisting offer priced at ₹87.5 per equity share. Ahead of the announcement, the company’s shares soared 9.45% on the NSE, crossing the proposed delisting price of ₹87.5.
Implied volatility (IV) is a very important measure if you are trading options. It helps traders to understand the overall market expectation. In mathematical terms Implied volatility explains the expected – annualized one standard deviation range where the stock is expected to trade in the future.
There are a lot many bullish strategies out there where one can follow when Nifty is falling. However, one particular strategy makes me more interested from a risk-reward perspective. It is a three-legged strategy that can be executed if you know the clear support zones in Nifty.
Cone and Holder Pattern is technical chart pattern where that resembles the Cone ‘v’ shaped recovery followed by a downward drift in price which resembles the cone holder.
USDINR enters into the stage of positional longs on 4th May and till to date continues its sideways journey for the last 4 trading sessions with Quick-flip supports around 75.58.
Bearish Diagonal Call spread is neutral to a bearish strategy which is executed by buying long-dated in the money put option and concurrently selling short-dated out of the money put option.