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
Ratio spreads, Strip & Strap Options Strategies
by PRASHANT SHAH -
Ratio spreads The ratio spreads discussed above are a decent strategy. We discussed debit and credit spreads. We discussed that credit spreads can be converted into ratio spreads by increasing the positions in OTM options. If the OTM strike price premium is too small for bear call or bull put credit spreads, you can write ... Read more
Synthetic Options Strategy
by PRASHANT SHAH -
Synthetic Long By now, you should be familiar with how payoff graphs behave. Think about it – how does the payoff chart for buying a future contract look? Risk is unlimited and profit is unlimited. Below is a payoff graph of future contact for a long position. Options are dynamic instruments. Wouldn’t it be interesting ... Read more
Butterfly Options Strategy
by PRASHANT SHAH -
Butterfly We discussed both bull and bear spread strategies. We do them when we have a strong or moderate bullish or bearish view of the market price. If we don’t have the view and we want to consider multiple scenarios, and design the strategy, we can combine the spreads. Strategies based on a view of ... Read more
