As discussed in the Option Volatility Strategies Webinar, Long Straddles option strategies are not frequently used trading strategies due to the nature of premium decay in options. Long Straddles can be initiated when the trader is expecting a sudden surprise price action (most during events) or strongly implied volatility pickup, Near to Expiry with potential Gamma price action moves.
In the last article we discussed about how the support and resistance zone created by nifty is a illusion as you are not the only one to watch those zones probably tonnes of all your trading competitors are watching this zones and placing their stops accordingly.
Nifty Futures opened gap down and made a island reversal pattern on Monday. Though it is a classical bearish pattern,markets generally reacts against the classical technique most of the time. Trading Sentiment is negative and after the Monday’s impact on markets expectation on the psychological figure 9000 reduced.
If you understand the participation wise open interest post the budget retail traders are keep on building their shorts till to date and the FII’s are building their longs to the extreme till to date. This is a clear tug of war between retail traders and FII/FPI’s in index futures.
Recently, Indian govt announced a particular scheme in their budget notes which took a lot of attention, especially gold merchants and speculators. With gold prices tumbling since last couple of years, the new scheme-if it works, would not only increase the supply of precious metal at domestic level, in-turn cuts our international gold imports which further depresses the price at global scale.
Today Globaldatafeeds announced that from 8th January 2014 – GFDL adds NSE Currency realtimedatafeed in its portfolio. And Now active PAID clients can access currency derivaties free users till 15th January 2014. GFDL Billing team confirmed that currency derivatives (Both Currency Futures and Options is enabled for both NSE and MCX futures client accounts.
Before going into a detailed discussion about the Market Makers in India, it is very important to know what exactly market making is all about. Market Making is basically aimed to inculcate liquidity in securities that are not really frequented on stock exchanges. Typically, it is the market maker, who is responsible for enhancing the demand-supply situation in securities which is inclusive of stocks, futures and options (F&O).
Todays NSE Circular states that there will be Exclusion of futures and options contracts on 51 securities. The list of stocks to be removed are listed below. However, the existing unexpired contracts for the month of July, August and September 2012 would continue to be available for trading till their respective expiry and new strikes would also be introduced in these existing contract months.