Category: Articles

Nifty at 11,400: Deploy Call Butterfly Spread to take advantage of rally

On immediate basis, 11,300 now acts as key support for Nifty monthly with next major placed at 11,000. Participant data points towards the bullish bias of Foreign Institutional Investor. Indian markets displayed stupendous rally for yet another week as Nifty50 rallied by 3.5 percent. All the major sectoral indices were...

Here’s how you can lock your losses, safeguard profits by using Options

Violent moves do tend to push the premiums higher but it is always prudent to keep away from shorting Options in the direction of volatility. There have been a lot of discussions about how to optimally monetise the potential opportunities using Options. Well, with the market on a spur, let us take a moment to discuss h...

Avoid big losses in your portfolio: Use options strategy to hedge risk

‘Option’ is a financial instrument that derives its value from the Underlying. The beauty of the instrument lies with its unique payoffs i.e. non-linear and that’s one of the key differentiators when compared to Futures. ‘Option’ is a financial instrument that derives its value from the Underl...

Options are most effective in giving best ROI; here are some Do’s & Don’ts

Options are most effective in terms of giving the best of return on investment and good absolute returns when bought of the strike which is nearest to the current market price to the underlying i.e. At The Money strike. Trading options can be highly risky if done without proper knowledge, but highly lucrative when done...

Portfolio Strategy: Use Options before taking a bet on Gujarat election outcome

Events usually attract attention for the bulk of investors and traders with intentions to a) Hedge a likely risk b) Generate returns from a directional forecast on outcome c) Make money from a forecast on volatility. Events usually attract attention for the bulk of investors and traders with intentions to a) Hedge a li...

These tips will help keep odds in your favour before trading options this December expiry

Every expiry, traders commit repetitive mistakes and it is time to master a few and stop them from hurting you again. Are options complex instruments? They indeed are and it gets even more complex on the day of expiry where the payoff is too sensitive to the expiry level. Every expiry, traders commit repetitive mistak...

Futures vs Options: Which strategy can help you bag you maximum profit?

Futures provide a linear payoff while Options are non-linear which creates multiple scenarios. Before taking a trade the base analysis is generally on the underlying and then a strategy can be formed in Futures & Options (F&O). The question is how to differentiate between both and when to choose Buying Options ...

Make most out of the earnings season using 4 options trading strategies

The price of an option may at times be more sensitive to volatility than to the underlying. To trade this rationally, one should consider deploying a Spread over just naked options. Event trading consists of one of the largest volume in Options after Expiry based trades. Have you ever bought a Call option ahead of resu...

Sensex, Nifty @ record highs: Do you know when to book profits in a rising market?

“Each investor has a different behaviour and risk appetite. Based on their preferences of the trade-off between risk and reward, one of the above Exit Styles can help,” says Shubham Agarwal, CEO & Head of Research at Quantsapp Private Limited. Knowing when to ‘Buy’ a stock may not be as tricky as to...

Budget 2018: Deploy option strategies ahead of Budget for a profitable trade on Thursday

As a trader or an investor, all we want to know is how much points of impact in Nifty does that comes to. Can we assign a simple number to this in terms of Nifty levels? The Budget sounds like a complex event with hundreds of different expectations on the Street regarding economic or regulatory changes. Well, some of t...

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