In the last webinar, we discussed Introduction to Algomojo Platform. In this Webinar, we are going to discuss how to send option orders using Algomojo platform.
In this tutorial, we are going to learn how to construct bearish hedge options for a price structure with crowded short term longs.
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.
There will be a theme that is repeated in any strong uptrend against the consensus. The theme is basically to install fear among the traders and to create a consensus opinion and thereby dragging the price against the overall consensus view.
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.
OptionAction is a 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. Though it is a simple tool with cool UI interface you can build any complex option strategies with the available pre built option templates.
Time decay can be a wonderful thing for the option seller. In fact, it is the driving force behind the so-called ‘income-generating’ strategies. The trader holds a position, waits, and then exits with a nice profit. When the position is market-neutral, and when the market behaves, all gains can be attributed to the magic of time decay.
is a type of contract between 2 persons where one person grants the other person the right to buy or to sell a specific asset at a specific price within a specific time period. The most often options are used in the trading of securities.
Download Bear Call Spread and Bear Put Spread – Amibroker AFL code to monitor the Option Spread Stragies.