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505–522 of 522 · page 22 of 22- EXPIRY & EVENTSTop 4 facts which investors should know about trading in early half of expiryWriting options in the early half of expiry is naturally lower on probability scale whereas trading options as a buyer for directional breakouts may be more lucrative if forecasts are available.3 min read
- EXPIRY & EVENTSDemystifying Time Decay; “Theta” the ultimate friend in expiry week"When trading for an expected range of expiry, the handiest tool to decide on the level might be looking at the Open Interest congestions with Highest Put OI being the support area and Highest Call OI being the resistance," says Shubham Agarwal of Quantsapp Private Limited3 min read
- TRADE IDEASNegative sentiments in Nifty may continue; deploy bearish trade through Bear Put SpreadDecoding participant’s activity suggests, FIIs were buyer in start of the week but reversed their bias aggressively on the short side.2 min read
- OPTIONS BASICS3 Reasons why you should never miss taking a short trade in marketMost of the trading indicators do have long and short signals and short are the ones which can be amplified to the favour if used correctly.3 min read
- TRADE IDEASWorried about volatility in market? Deploy Long Strangle in Nifty for making quick profitHistorically, India VIX holds negative correlation with the market. The upper band of VIX is placed at 21.2 min read
- HEDGING & RISKStuck with huge portfolio losses? Use ‘Options’ in a falling marketBuying Puts is a simple strategy where an At the Money put is bought on the Index like Nifty with a notional value of the portfolio adjusted for portfolio’s beta.3 min read
- OPEN INTERESTOpen Interest: An additional tool for traders to decode market expectationsOpen Interest or OI is the total number of open contracts in an instrument outstanding in the market at a given point in time. These contracts are generated by transactions between buyers of instrument and sellers of them.3 min read
- TRADE IDEASNifty likely to see a pullback towards 10,800; Deploy Bull Call Spread to maximize profitA sharp bounce back from the level of 10300 raises the expectation of the up move towards 10800-11000 levels. The Market-wide PCR OI moved to 1.43 indicating Put writers were active again with the base formation at 10000-10400.2 min read
- STRATEGIESChoosing the right strategy to make the most out of a Bullish Forecast?The non-linear payoff of Options still ensures that the risk can remain limited if the forecast doesn’t work in favour.3 min read
- TRADE IDEASPNB spoils party for bulls! Deploy Put Condor Spread in BankNifty to counter volatilityWith bearish undertone prevailing further downside could not be ruled out. Thus low-risk hedge strategy Long Put Condor is recommended in Bank Nifty.2 min read
- STRATEGIESNot sure where Mr. Market is headed? Option guts can still help you profitBuying futures needs a surety of the direction as the payoff is linear but Options can still help you add returns due to its Non-Linear Payoff behaviour," says Shubham Agarwal CEO & Head of Research at Quantsapp Private Limited.3 min read
- VOLATILITYDeploy Put Butterfly Spread to beat volatility till February expiryWith Market data point suggesting cautious stand, it is imperative to hedge the portfolio for any further downward risk. Thus a hedge strategy, Put Butterfly Spread in Nifty with higher Reward to risk of 3.65:1 is recommended2 min read
- STRATEGIESAfraid to trade seeing mayhem on D-St? Time to have ‘Butterfly’ in your tradeThe butterfly can be formed by Selling 2 Lots of a particular strike Call/Put & buying one higher Call/Put & one Lower Call/Put of the equal distance up and down.3 min read
- EXPIRY & EVENTSDo you ‘Fear’ entering markets post Budget? Use option strategies to make money"Greed & Fear are the emotions which override rational thinking and today we’ll learn about how to get rid of one of them called ‘Fear’. Correction in a bull market is what everyone ‘desires’ to buy but most investors miss on the opportunity and end up waiting for a better price or they buy too early and lose," says Shubham Agarwal of Quantsapp Private Limited.3 min read
- EXPIRY & EVENTSBudget 2018: Deploy option strategies ahead of Budget for a profitable trade on ThursdayAs 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?3 min read
- OPTIONS BASICSSensex, Nifty @ record highs: Do you know when to book profits in a rising market?"Each investor has different behavior and risk appetite. Based on their preferences of the trade-off between risk and reward, one of the above Exit Styles can help"3 min read
- EXPIRY & EVENTSMake most out of the earnings season using 4 options trading strategiesThe 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.3 min read
- STRATEGIESFutures 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 over Futures?3 min read