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
Vega
by PRASHANT SHAH -
Vega measures the sensitivity of an option towards volatility. We discussed implied volatility earlier. Vega measures how much Option premium will change if volatility increases by 1%. It shows a theoretical value of Option for each 1% change in implied volatility. Basically, Vega is a ratio of price change to volatility change. Price in rupees ... Read more
Option Greeks – Summary
by PRASHANT SHAH -
Greeks Calculation of Greeks is possible in options only because of the following important properties of options: The Greeks are extremely useful to evaluate the positions and take necessary steps. Particularly for multi-leg and complex strategies, Greeks can help you to know how price, time and volatility will affect your strategy. You can take necessary ... Read more
Revisiting Option Strategies
by PRASHANT SHAH -
Revisiting the Strategies Now when we know the IV and Options Greeks, we can initiate options strategies in a better way and address the following questions related to them: We discussed that Volatility is an important factor that a traders needs to deal with. It affects the options prices. Let’s discuss which strategies should be ... Read more
