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
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
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
A long time ago, in a galaxy far far away… Nah. Long years ago we made a tryst with destiny… Nah. It was a dark and stormy night… Nah. Okay, we are back. In 2013, Sensibull was founded with a simple mission. “Retail investors should stop making losses”. We figured that the retail losses were … Continue reading We Are Back
