About the book: Everything About Trading Options

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 ... Read more

Derivatives & Futures

Derivatives Derivative is a market segment of trading.  In India, there are two major stock exchanges – National Stock Exchange or NSE and Bombay Stock Exchange or BSE where people can buy and sell shares. That segment is known as cash or the spot segment. There is separate segment called the derivative segment at NSE ... Read more

Basics of Options

Options is a very popular derivative instrument. Most of the turnover at the National Stock Exchange or NSE happens in the Options market. We will discuss trading the Options in detail in this module. But first, let’s discuss the basics. Remember the derivative segment consists of Futures and Options. You must now be familiar with ... Read more

Open Interest Analysis

Open Interest Let us first define Open Interest in order to understand how it can be analyzed. We analyse volume when we trade stocks. We can analyse Volume and Open Interest when we look at derivatives contracts. Volume is simple to understand, it is the number of trades taking place in the security. The concept ... Read more

Option Chain Analysis

Option Chain Option chain is a very popular tool for the data analysis among derivatives traders. It is available in Opstra and TradePoint. Option chain is basically a data table. When you select the symbol and expiry of any instrument, you get the data of all the strike prices of that instrument. The option chain ... Read more

Call and Put Options Strategies

Payoff graphs We discussed that the initial investment is less when we buy option contract. We can plot payoff chart of any option position and check our risk-reward levels for the position. Check the below image of Nifty Option price. A = Spot price of Nifty (cash segment). B = Future price of Nifty. It ... Read more

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