In India, options trading is becoming increasingly popular. According to the data from National Stock Exchange (NSE), the trading volume of Options contracts has been steadily increasing.

Since the introduction of the margin rule for derivative contracts in 2019, option strategies have become increasingly popular. Opstra of Definedge is a very popular platform among Indian options traders. Options trading strategies exist in many forms, but many traders are unaware of the logic and concepts behind them. The lack of awareness is also due to the assumption that it is very complex due to the jargon used.

In this book, I attempt to explain the subject right from the beginning, presuming that the reader does not have any prior knowledge of options or derivatives.

There are six segments in the first part.

1 - Basics

2 - Options Strategies

3 - Volatility

4 - Options Greek

5 - Revisiting the strategies

6 - OI & Option Chain

Basics

In the first segment, the basic concepts of derivative segments and options are discussed. The first chapter in this segment discusses the basics of the stock market and how it works. The second chapter focuses on the basics of derivatives and futures. Those who are familiar with these concepts and the basics of how the stock market works can skip these chapters.

In the third chapter, I discuss the basics of trading options. It is recommended that you take a look at this chapter even if you are familiar with the basics of options.

Options Strategies

In the second segment, options strategies are explained from the ground up. I have also explained payoff analysis, and the focus of this segment is on understanding strategies using payoff charts and learning about their risk and reward.

Volatility

In the third segment, volatility is discussed. In this segment, we discuss IV, HV, and volatility skew.

Options Greek

During the fourth segment, Options Greeks are explained right from the beginning in an easy-to-understand manner. This segment discusses all of the significant points related to Greeks.

Revisiting the strategies

In the fifth segment, we will revisit the strategies and discuss them in terms of the Options Greeks. This segment will provide you with additional information regarding strategies. Additionally, we discuss which strategies should be used in different volatility conditions as well as how the strategies should be analyzed.

OI & Option chain

The sixth segment discusses open interest and the option chain.

There will be more segments added in the near future. I will also write about PCR, Max pain, Straddle, strangle charts and technical analysis on Option charts soon.

In the initial chapters, I have attempted to explain things in simple terms. As we progress through the book, we will use some jargon. In the later chapters, I have attempted to use a very normal language associated with option traders in order to help you become familiar with the subject.

In this book, I share my experience and talk about everything related to options in simple, to-the-point words that cover all the key points related to each topic and have a focus on explaining the concepts.

I recommend reading the book from beginning to end and focusing on the concepts discussed in every chapter.

- Prashant Shah