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]
Best Stock Brokers for Trading and Investing in India
Trading and investing in stocks is becoming more and more popular. Especially in small and growing tier 2 and tier 3 cities. Traders who are looking for actively trading in Indian stock markets are now looking for many dimensions. That can help them improve their trading experience. So knowing which is the best stock broker in India can solve many of the trading problems. We have done a thorough ... [Continue Reading]
Axis Bank to create a All Time High – Derivative and Technical Analysis
Axisbank yesterday has traded around its highest level and was able to close comfortably there. But an all-time high is still 1% away, so what should be our approach? Shall we buy or sell this stock? Axis bank analysis will clear this all. Let us find the answer with technical analysis and by watching derivatives data. Technical analysis on Axisbank: Axis bank has tested its previous high ... [Continue Reading]
Nifty Option Chain with Option Writing Strategy
The nifty option contract is highly liquid contract traded on NSE. Understanding in which direction the smart money is flowing can help us create a great trade. To find the smart money flow, let us look into the nifty option chain. I personally recommend using one available at nseindia.com. Using Nifty Option Chain data: Then we should look for the strike price having the highest open interest ... [Continue Reading]