When it comes to trading, there are many different strategies that you can use to try and make a profit. One of the most popular strategies is option buying, where you buy the right to buy or sell an asset at a certain price in the future. While this strategy can be very profitable if… Read More »
In Continuation in Previous Posts How Option Prices are Determined How To Calculate An Expected Range For The Market using Options ? This Options concept are shared by Mr Raja Mohan an Expert Option Trader. I am thankful to Him for sharing his knowledge to all the Readers. Delta:- Change in option price with underlying spot (1st… Read More »
This Options concept are shared by Mr Raja Mohan an Expert Option Trader. I am thankful to Him for sharing his knowledge to all the Readers. Option price depend on 1) Intrinisic value (Value if the option were to be used right now) (Strike- Stock price) for a money making option 2) Extrinisic value 1)… Read More »
If you’re an options trader, you may have heard about “Greeks” but you may not know exactly what they are or what they can do for you. What are Greeks anyway? Greeks, including Delta, Gamma, Theta, Vega and Rho, measure the different factors that affect the price of an option contract. Since there are… Read More »
If you’re an options trader, you may have heard about “Greeks” but you may not know exactly what they are or what they can do for you. What are Greeks anyway? Greeks, including Delta, Gamma, Theta, Vega and Rho, measure the different factors that affect the price of an option contract. Since there are… 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 »