The last and final part of What Affects Option Prices. In this webinar we look at volatility You can see the Implied volatility of all the Options listed on NSE here: NSE Option Chain by Sensibull Options Screener by Sensibull — Options Central
NIFTY opened like a 300 point gap down two weeks back. Here is how you could have made (or lost) 15k with just 50 k capital in 10 minutes! Here is Balajee Ramachandran, our front end engineer and an Options Trading enthusiast, with his real life Options Trading Experience https://www.youtube.com/watch?v=0FLzxdRP3Kw The moral of this story … Continue reading How to (NOT) Trade Options in market crashes
To trade well is not to trade is a very famous Zen proverb (which I just made up). Some of the best traders I have known did not trade for 17 out of 20 trading days a month. And in the three or so days they did, they made a killing. Why should you not … Continue reading To trade well is to not trade
This article is dedicated to my friends who asked a question on covered calls — Pallu aka Saurabh and Rakesh Hegde. What is a covered call? You have Infosys, which you purchased at 900. You think the stock is stuck in a range, say 880–920. You sell a call against your stock and get some premium every … Continue reading You Should not be Doing Covered Calls
Here is a video attempt to answer the most important question for options traders. We hope you enjoy this! https://youtu.be/tr-tJlz9RAw If you would like to find out the best option to trade for your view, from a list of thousands of complex strategies like calls, puts, call spreads, put spreads, straddles, strangles, iron condors, iron … Continue reading Which Strike to Choose for an Options Trade?
The rules of STT in options work this way: Exercise of Options: Option exercise happens when you buy an option, do not square it off and it makes money on expiry. In this case, STT is charged on the underlying NIFTY price — which is around 10500 for NIFTY as of Dec 2017. The buyer of the … Continue reading Just how bad is STT?
Nothing happens in financial markets on most weekends. So an options trader will sell call options and put options and try to earn the time value decay for three nights — Friday Night, Saturday night, Sunday night. If it is a long weekend, the selling will be more, because of more time value decay. Due to selling, … Continue reading The Weekend Effect
6. Trading Illiquid Options Some Options are Illiquid. That is, the bid and offer don’t exist, or they are wide apart. Examples are Deep In the Money Options Next month, or next to next month Options Options of smaller stocks. How does this affect you? Let us take one example: The bid-offer on Castrol December 410 … Continue reading 7 Sins of Options Trading — Part 3
4. Not Selecting the Right Strike Price NIFTY is at 10000. NIFTY future is at 10020. Expiry is in 10 days. Scenario 1 You think NIFTY future will go to 10090 in 4 days. Which call option will you buy? 10000, 10050, 10100, or something else? Return on Investment for options of different strikes 9900 Call … Continue reading 7 Sins of Options Trading — Part 2
1. Buying options with a lot of money 1. Buying options with a lot of money The biggest mistake of all times. This often ends up in investors losing a big part, if not all, of their capital. NEVER do this. People do this because: They think they can make some quick money They lost big money … Continue reading 7 Sins of Options Trading — Part 1
