Nifty is most likely to go higher from the current levels. After the corporate tax cut. We are seeing huge buying in markets. We are expecting nifty has 1-2% upside room still left. But buying a future can be risky. So we are looking for options strategy with defined risk. In nifty one can deploy bull call spread, by buying ATM call option and selling higher strike call. This will bring the ... [Continue Reading]
Benefits of Trading with Risk Defined Options Strategies
Risk defined options strategies help to isolate the max risk to a certain comfort level. In trading future, we often place a stop loss to restrict losses. But what if our stop loss doesn't get trigger? scary right! Let us understand the risk with an example... We have found nifty future is trading at a support level, we are quite confident that nifty will not break this support. As it is a ... [Continue Reading]
General Election 2019 Results and Nifty Banknifty Options
When the last round of polling was complete on 19th May. Most of the exit poll agencies were ready to show who was ahead in 2019 General Election. We saw most of the exit polls predicted BJP led NDA will form the next government. Exit Polls Result: NDA was likely to come back to power, was seen in the exit polls. On Monday we saw Nifty and Banknifty hitting a new all-time high. India VIX ... [Continue Reading]
Options Trading Strategies to Deploy for Budget Session
The general budget will be announced on 1st Feb. I am expecting volatility to be high for a few days. I see IV (implied volatility) are very high as of now. Moves during the sessions could be wild, so I will not be taking any naked option positions. I am hedging all the open positions, be prepared for uncertainty. Spreads are the best way to trade in the time of uncertainty. I am looking for ... [Continue Reading]
How to trade Nifty Option using Max Pain Level
What is Max Pain level? Max pain level is an option strike price at which index expires on the expiry day. Causing maximum loss to the option buyer and minimum loss to the option seller. Now one thing to note here is, option sellers (option writer) are much smarter than buyers. Selling option requires huge capital to play. So only those guys with deep pockets play in the option writing game. ... [Continue Reading]
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