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
Volatility, IV & HV
by PRASHANT SHAH -
Volatility is a very important and inevitable part of the market for traders and investors. I would say the success of a trader depends on how he handles volatility. Let’s discuss volatility. Volatility A simple explanation of volatility is that it is a fluctuation in the market. See the below image. There is an uptrend, ... Read more
Volatility Skew
by PRASHANT SHAH -
There is an interesting concept called Volatility smile. Volatility Smile We have discussed the fact that all option strike prices will have different IVs. The IV of an index or stock is derived from the underlying IVs of the put and call options of various strike prices of the underlying stock or index. High IV ... Read more
Straddles & Strangles Options Strategies
by PRASHANT SHAH -
You must now have a clear understanding of the pros and cons of buying and selling options. But they can complement each other. We can define strategies by trading them together. When we buy options, we have to pay the premium. It’s a debit position. When we sell options, we receive the premium, it’s a ... Read more
