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

Options Payoff Analysis

I am intentionally talking about pay-off after covering a couple of strategies. It will give you a better perspective now. The shape and width capture a lot about the pay-off graph and with practice you will gain better insight into your strategy by simply looking at the pay-off graph. Let’s understand it in more detail. ... Read more

Vertical Spreads – Debit Strategies

Spreads help us to take advantage of the nature of each option position and help us to create positions based on your market views. When your view of the market is not very strong. Let’s say you’re bullish but unsure about it. Not very bullish. Bearish but not very bearish. Often, we come across this ... Read more

Vertical Spreads – Credit Strategies

Bear Call spread – Credit When you have a semi-bullish (not very bullish) or semi-bearish (not very bearish) market, debit call spreads are effective. The strategies are net debit, which means in the event of time decay, you lose the option value (premium). The opposite of a bull call spread is a bear call spread. ... Read more

Recently added/updated topics