About the book: Everything About Trading Options
by PRASHANT SHAH -
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
by PRASHANT SHAH -
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
by PRASHANT SHAH -
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
Delta in Option Greeks (∆)
by PRASHANT SHAH -
Delta is regarded as one of the most significant Options Greeks. Let me tell you a fun story before we discuss it in detail. See the below picture. The name of that tall guy is Dora Nifty. The three small guys are his kids. They are going to run a race. Others are spectators. The ... Read more
Gamma in Option Greeks (γ)
by PRASHANT SHAH -
We discussed Dora Nifty and her children’s participation in a race. Let’s continue with that example. They ran a second phase of the race. The Dora Nifty moves from 100 to 200. But other kids could not run at the same speed. The second kid jumped from 50 to 120. He took an energy drink, ... Read more
Theta in Option Greeks (Θ)
by PRASHANT SHAH -
It is easy for you to understand theta decay. Let’s discuss another example of Dora Nifty. Dora Nifty decided to run the race from 0 to 200 meters in 10 minutes. He was prepared for the race. When he started, he had a better chance of completing the race in 10 minutes. He went till ... Read more
