Markets are trading calm compared to the Month of March, Apr, June 2020. Volatility cooled off and trading ranges get smaller and smaller. However, still, a reasonable intraday volatility persists in the markets.
While trading the debit strategies measuring the risk-reward ratio matters a lot for the options trader. Though you might have a bearish opinion about the market. However, the overall objective of the trader is to maximize the gain and minimize the losses.
Bank Nifty Futures today had a bearish engulfing day with the sector-wide sell-off. Since May 18th Bank Nifty futures is trading a broader range 17000- 22000 and Bank Nifty has broken the range on Tuesday followed by a bearish engulfing pattern.
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.
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.
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.
Bearish Diagonal Call spread is neutral to bearish strategy which is executed by buying long-dated in the money call option and concurrently selling short-dated out of the money call option.
Nifty Futures – Daily Charts Nifty trading sentiment turned negative at the close that breaking the streak of trending longs. And short term sentiment is pointed towards the weaker reference levels towards the weaker HVN levels 8700 which is double weaker around 8700. Nifty Futures – Dynamic Volume Profile Intraday volatility cooled off a bit […]
Currently Blood, Fear, Anger is there on the streets especially for the Put writers, Investors, Long Only traders. But let me tell you something, “markets are filled with emotions, fear & greed”.
Nifty Futures last Friday has broken the 5-day balance and managed to trade below the 5-day balance. Though breakout failure is seen during the middle of the day value formed lower overall.
This is an Introductory 4 part series on How to Trade Nifty and Bank Nifty Options. This course provides a deeper perspective about how a trader has to prepare themselves to trade Index Options and How to take a view based approach using Market Profile to trade Nifty and Bank Nifty Options.