Option Strategies
A brief primer on the options strategies, as to how to position your options when a forecast of the underlying has been formulated. How optimally exploit the non-linear nature of option pay-offs.
- 01Why Strategies?In the previous module, we mentioned about call option and put option, however, the tendency of option traders is to buy options, expiry after…2 min · video
- 02Market RegimesA bull is an investor who expects prices to rise and based on this hypothesis, he sometimes buys the underlying NIFTY or F&O stock, in hopes of…2 min · video
- 03Option SpreadsSpreads involve combining options to formulate suitable option trading strategies on the same underlying and of same type (call/ put) but with…2 min · video
- 04Vertical Spreads/ Directional SpreadsA bull spread is created when the underlying view on the market is bullish, but not extremely bullish. Considering this situation, the trader would…9 min · video
- 053 - leg directional strategiesThe need for 3-Leg Directional Strategy is because of the pace of Time Value Decay (or Theta Decay). The chart below shows how Theta impacts as…6 min · video
- 06Non - directional strategies for volatile marketsVolatile markets are when an option trader expects large swings in the market or a large sizeable move but the direction of the move isn’t certain.…7 min · video
- 07Non-Directional Strategies for Oscillating MarketsA short straddle is an options strategy consists of selling both a call option and a put option of the same strike price and expiration date. It is…3 min · video
- 08Hedged Non-Directional StrategiesThe drawback of the previous non-directional strategies was the potential of unlimited losses, hence the need to hedge the unlimited losses by…7 min · video
- 09Strategy to trade Option StrategyThe max profit and max loss illustrated in all of the above options trading strategies are expiry basis, which needs to be taken into account by…2 min · video