Call and Put Options Strategies
by PRASHANT SHAH -
Payoff graphs We discussed that the initial investment is less when we buy option contract. We can plot payoff chart of any option position and check our risk-reward levels for the position. Check the below image of Nifty Option price. A = Spot price of Nifty (cash segment). B = Future price of Nifty. It ... 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
Options Payoff Analysis
by PRASHANT SHAH -
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
Call and Put Options Strategies
by PRASHANT SHAH -
Payoff graphs We discussed that the initial investment is less when we buy option contract. We can plot payoff chart of any option position and check our risk-reward levels for the position. Check the below image of Nifty Option price. A = Spot price of Nifty (cash segment). B = Future price of Nifty. It ... 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
Options Payoff Analysis
by PRASHANT SHAH -
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
