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
Iron Fly and Iron Condor Options Strategies
by PRASHANT SHAH -
Iron Fly In the same way as butterfly options, iron fly options and iron condor options are multi-leg options. In the butterfly, we discussed a strategy involving three strike price options. In the iron fly and iron condor, there are four strike price options. Iron fly is also a non-directional strategy that should be executed ... Read more
Calendar Spread Options Strategy
by PRASHANT SHAH -
A calendar spread is also known as a horizontal spread or a time spread. Unlike vertical spreads, we trade options of different expiries in case of a Calendar spread. You can trade it for weekly expiry options as well. Ideally, At-the-money (ATM) strike prices are used for trading calendar spreads. With calendar spreads, the margin ... Read more
Diagonal Spread Options Strategy
by PRASHANT SHAH -
When we choose different strike prices in a calendar spread instead of ATM, it becomes a diagonal spread. In a standard diagonal spread, the front-month OTM or far OTM option strike is sold instead of ATM and the back-month ITM or ATM option strike is bought. Diagonal spreads are called ‘Diagonal’ because they are a ... Read more
