Indian Union Budget will be presented on 29 Feb 2016 , and as discussed in previous post Nifty remains in a wide range so there is an opportunity to trade in Nifty Options And the opportunity could turn out to be quite promising. Which will be market direction post budget we do not know so… Read More »
Many traders have been asking me question on my write up of FII Data analysis, Keeping all the question in mind i have prepared a cheat sheet which will help you in understanding my data analysis with more clarity. 1. What do you mean by Open Interest (OI) in futures and options? When there is… Read More »
In Continuation with Previous Article Mistakes to avoid when writing/shorting Options Option Writing – Unlimited risk and Limited profit potential An option buyer has limited risk and unlimited profit potential, so if 1 lot of 8000 Nifty call was bought at Rs 130, the maximum loss on this trade is the Rs 9750 (Rs 130… Read More »
In Continuation with Previous Post Todays post we will discuss Mistakes to avoid when writing/shorting Options Introduction Options Shorting/Writing Why Retail Traders “Buy Options” and Professional Trader “Write Options” Trading way above your Limit Over-positioning is the biggest mistake new option sellers make. This is how it works: New traders sell a few options, see… Read More »
In Continuation with Previous Article Why Retail Traders “Buy Options” and Professional Trader “Write Options” What is Option Writing Option Writing means Instead of Buying Options (Buying Call or Put), trader is shorting them, Just Like we short Futures, Option can also be shorted. Universal Rule of Market is Every Buyer will have a Seller… Read More »
Regular readers of my site must be well aware of the fact, I always ask traders with small capital to stay away from Buying Options, During my trading course Typically 80% of traders have confessed , that they made there big loss when they have bought options.Now with increase in lot size of market Nifty… Read More »
Bull Ratio Spread: The Bull Ratio Spread could be called as a variation of the Bull Call Spread. Here we expect the stock to move sideways to slightly higher. The Position is created by purchasing a call (preferably At-the-money or slightly Out-of-the-money) and selling more than one calls at a higher strike price in a… Read More »
With the Indian Union Budget to be presented on 10 July , and as discussed in previous post Nifty remains in a wide range so there is an opportunity to trade in Nifty Options And the opportunity could turn out to be quite promising. Which will be market direction post budget we do not know… Read More »
Last Week we gave Chopad level of 6873, Nifty did all 7 target on upside giving 633 points to trend follower .Lets analyze how to trade Nifty before the Lok Sabha election results. Nifty Hourly Chart Nifty Hourly charts are trading in expanding triangle range, spurt up and than cool off and finally closing… Read More »
The India Volatility Index (VIX) has gained 28 percent in the last four sessions. Normally, this would have meant the market had declined during this period. That is because the movements in VIX and the market are inversely co-related, more often than not. But this time around, the Nifty has risen alongside VIX, gaining 3… Read More »