This Community Webinar (120mins) we discussed some of the basics of Option Concepts like Implied volatility and provides directional guidelines on Directional option trading, Weekly/Monthly Options Strike Selection based on the volatility and when to step away from trading directional options.
If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My clients frequently question me-“Hey do you use any indicator”? Most probably my reply will be no-because majority of you guys know, I am a pure Price action trader!
is one of the best option analaysis tool for Indian stock markets and Option traders in india had a strong affinity towards that open source tool. However in recent days the tool is not working for Indian markets which hurts a lots of strategic option players in India. And Santosh Kumar Pasi) has the solution for this and recently released NSE Plugin (v 1.8.4) for Options Oracle.
Nifty Higher open interest shifted from 5300 puts to 5600 calls indicates 5600 call writing. 5600 will act as a shorter resistamce for timebeing.
I’m going to share information regarding when to write options and how beneficial it is to write options provided it satisfies certain conditions:
Covered call and Covered put are both one of the best option strategies for those who trade in F&O segment. These strategies are used for reducing the loss if trade goes against our expected trend. F&O is a risky segment which always needs protection for the trader if something goes wrong unexpectedly in the stock.
Nifty is likely to cross 6300 by expiry due to following reasons.Sustained buying by FIIs – incoming smart money, Sustained selling by DIIs – outgoing dumb money
Lies, Lies and Damn Lies is a very popular guide to Investors/Traders in Option Markets. Now the Compete 10 Chapters are available for Download
Butterfly spread is a good strategy when there is not volatility. This strategy also has self protection against big moves. However this can also produce limited amount of loses when market makes big moves. This strategy can be executed with calls and puts.First let me take the execution of the butterfly spread using calls.
Sellers of naked calls face unlimited loses if the price of asset they sold goes up. For example if a speculator sells 1000 MSFT calls at strike 25 for a premium of $2, his loses starts when MSFT closes above 27 on expiration date. For every dollar rise in price above27 he loses $1000.
It is quite natural that there exist options for holders of assets too. All those who have bought assets for investment fear that the prices of their asset might fall in future. This fear is true and there are options to reduce this risk also.
A call option on a stock is a contract in which the seller agrees to sell shares at a promised price if the share price remains above the strike price at which contract is made. If the share price remain below the strike price on expiration of the contract the seller gets the premium received free.