The most important thing is taking a view and riding with options strategy is the breakeven level. Faster the breakeven levels better the odds of risk-reward ratio. Diagonal Spreads has a faster breakeven with controlled risk and limited reward.
In this tutorial, we are going to learn how to reduce the risk in a bearish strategy at the same time effectively use the margin. Currently Nifty is trading around 11200 levels in spot and expiry is around the corner. However Nifty hits the major supply zone (Resistance zone) 11000-11400 as shown below where institutional selling pressure is expected at higher prices.
While trading the debit strategies measuring the risk-reward ratio matters a lot for the options trader. Though you might have a bullish opinion about the market. However, the overall objective of the trader is to maximize the gain and minimize the losses.
Here is a tutorial on Option Analysis Tool – Option Action which helps options traders to Design, Create & Monitor Option Trading Strategies.
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.
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.
This is an Introductory webinar series for those who want to get their expertise in Options Trading using Market Profile. It is a 5 part trading series webinar on Market Profile and Options Trading. If you are new to Market Profile and Options this series will help you to improve your trading decision-making skills better.
Cash Secured Puts is a simple way to acquire stocks for investment at a lower price than the current Market Price. It involves selling out of the money put options and simultaneously holding enough cash to purchase the stock at lower price.
OptionAction (OAWeb) is a web based Option Analysis tool which lets you to build and analyze option strategies for Indian Stock Markets. It provides most of the analytics required for a option trader to practice and implement their option strategies. Recent launch of web based interface is modern, responsive and full-fills most of the option traders criteria. The Best part of the OAWeb is Good user interface ability to create trading strategies via Mobile/Tablet with great user experience as it is designed to utilize the app in a user friendly way.
Just upgraded Option Action Beta Version from 18.104.22.168 to 22.214.171.124 and the new interface is cool and interesting filled with meaningful addition which is essential for a trader. It has a cool dashboard with Nifty, Bank Nifty, SGX Nifty, Small Cap, Mid Cap, India VIX.
In this video tutorial we will explore the basic features and functionalities of Option Action, How to create option strategies and how to interpret the payoff graph.
We know that Open Interest is nothing but the total number of outstanding contracts. And for Options we have Open Interest for every individual strike price. It is a myth that 90% of the option expire worthless. Textbooks, Internet & even most of the option experts preach that option writing is smarter than buying options . But is that true?