Articles
264 ARTICLES · 2018–2023Options strategies, hedging, volatility and open interest, explained with worked Nifty examples.
HEDGING & RISKPair Trade: Trade outperformance + Reduce big market fall riskPair Trades or Long-Short is a trading strategy involving 2 stocks where we would buy one stock and sell one stock.
LATESTSTRATEGIESCovered Call, a best strategy for a slow marketIn Covered Call, we buy a Futures contract and simultaneously Sell a Higher Strike Call option.STRATEGIESTop 3 Option strategies for range-bound conditionHere are the 3 strategies that help you swing through range bound market profitably.OPTIONS BASICSTrading respites tactfully with OptionsHere are some of the modifications one could resort to while trading relief rallies
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1Options Greeks Explained : What are Options Greeks and how to use them as your trading guide with Quantsapp2Implied volatility & Skew as an indicator of market direction3Types of Vol: Historical/Realized / implied volatility options with Quantsapp4Broken Wing Butterfly is slow but steady strategy in making money amid volatility5Options Strategy: Shubham Agarwal explains how to use combinations to optimize options tradeBy topic
STRATEGIES
Covered Call, a best strategy for a slow marketTop 3 Option strategies for range-bound conditionOPTIONS BASICS
Trading respites tactfully with OptionsHow to trade pullbacks effectively with options, explainsVOLATILITY
Implied Volatility: It's critical, yet unknown, in Options, explainsHow to use back ratio spreads strategy in trading biased volatilityHEDGING & RISK
Pair Trade: Trade outperformance + Reduce big market fall riskOvernight Risk Analysis, a critical part of Options tradingAll articles
264 articles- HEDGING & RISKPair Trade: Trade outperformance + Reduce big market fall riskPair Trades or Long-Short is a trading strategy involving 2 stocks where we would buy one stock and sell one stock.3 min read
- STRATEGIESCovered Call, a best strategy for a slow marketIn Covered Call, we buy a Futures contract and simultaneously Sell a Higher Strike Call option.3 min read
- STRATEGIESTop 3 Option strategies for range-bound conditionHere are the 3 strategies that help you swing through range bound market profitably.4 min read
- OPTIONS BASICSTrading respites tactfully with OptionsHere are some of the modifications one could resort to while trading relief rallies4 min read
- HEDGING & RISKOvernight Risk Analysis, a critical part of Options tradingOvernight Risk Analysis and Adjustment is minor yet crucial way to make sure that there are no uncontrollable disasters in Options Trading and that we never lose money to Error of Overlooking.3 min read
- TRADE IDEASDeploy modified call butterfly strategy in NiftyConsidering the negative momentum, the upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.3 min read
- EXPIRY & EVENTSHow to Profit from Trading Weekly Expiry Days, Shubham Agarwal ExplainsWe are more likely to make money trading weekly expiry if we do it with discipline and protection. To understand the nitty gritties, the article would help.3 min read
- TRADE IDEASDeploy Modified Call Butterfly Strategy in NiftyConsidering the bullish momentum, an upcoming week can be approached with a low-risk strategy like modified call butterfly in Nifty.2 min read
- STRATEGIESCollar is a perfect option trading strategy for turbulent timesCollar is one of the most conservative option trading strategies. It is best suited for bargain hunting in market conditions that are changing everyday based on some developments that are uncertain.3 min read
- STRATEGIES'Iron Butterfly' a strategy suited for consolidationIron Butterfly strategy is designed to trade range-bound or consolidation outlook. In simple words it is Selling of both options Call & Put of strike near the current market price with Hedges.4 min read
- EXPIRY & EVENTSTrade the events efficiently by knowing what impacts option premium and howHere are the basic factors affecting Option Premium and always have these relationships of premium and its factors in mind to trade more efficiently.4 min read
- TRADE IDEASDeploy modified Put butterfly strategy in NiftyConsidering the bearish momentum along, upcoming week can be approach with a low-risk approach like modified put butterfly strategy in Nifty.2 min read
- HEDGING & RISKHedging, a must-know activity for risk managementThere are three scenarios where hedging becomes crucial, which has to do with dealing with Past, Present & Future risks of loss.3 min read
- EXPIRY & EVENTSHere's how you can trade Options during the corporate results seasonIt is difficult to predict if a stock will go up or down post the event like result. However, one thing that can be traded is the expectation of movement and options trading is favourable during onslaught of volatility said Shubham Agarwal .3 min read
- VOLATILITYImplied Volatility: It's critical, yet unknown, in Options, explainsExtracted Volatility figure given the price of the option is called Implied Volatility. In other words, Implied Volatility is volatility implied by the Option Premium traded in the market4 min read
- STRATEGIESTrade large oscillations with out of the money spreads, explainsOut of the Money (OTM) Vertical Spread Strategy is devised by creating Buy position of the Spread in Higher Call/ Lower Put and Sell position in further Higher Call/ further Lower Put.3 min read
- HEDGING & RISKDysfunctional risk removal with Option strategy improvementThe improvement that we will talk about here will work with a simple adjustment to our option trades. This will be achieved by monitoring the trades for Dysfunctional Risk and Getting Rid of them.4 min read
- OPEN INTERESTInfer consensus using Options open interestOpen Interest as the word suggests is the amount of interest in any derivatives instrument. The Indian equity derivatives market has two kinds of instruments Futures and Options, where Options have further 2 varieties Call and Put.3 min read
- STRATEGIESOptions Strategy: Shubham Agarwal explains how to use combinations to optimize options tradeOption strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more characteristics. Here, characteristic means the type of option (Call/Put), expiry date, and the strike.5 min read
- VOLATILITYHow to use back ratio spreads strategy in trading biased volatilityCall Ratio Back Spread strategy is where for Bullish Biased Volatility, we need to Sell a Call of the strike closest to the current underlying level and Buy not 1 but 2 lots of a higher strike Call.3 min read
- OPTIONS BASICSHow to trade pullbacks effectively with options, explainsOptions can be used as trading vehicles to capitalize on bargain hunting at the same time to keep oneself safe from any big damage that could create a bigger dent.3 min read
- OPTIONS BASICSOptions Greeks Explained : What are Options Greeks and how to use them as your trading guide with QuantsappHere is a guide by Shubham Agarwal on popularly-monitored Options Greeks, their utility, and action. A brief understanding of greeks in options to the know how of options greeks, to enable traders to optimally position their trades.5 min read
- TRADE IDEASTime to hedge your positions, deploy Bear Put Spread on Nifty this weekBear Put spread is a moderately bearish strategy. The strategy is built by buying a Put close to the current market price of the underlying and selling the same expiry Put but of a strike lower than the Put bought2 min read
- OPEN INTERESTBargain-hunting made easy with OIPCRThe ratio OIPCR also called open interest (PCR), just gives us a gauge of participation in Puts vs Calls. A higher ratio means more Puts and vice-versa, says Shubham Agarwal.3 min read
- STRATEGIESNervousness after a big fall in market advocates alterations using optionsThese alterations are to have a Conjoining trade along with the existing trade that is aimed just to improve your risk-reward profile in options trading .3 min read
- STRATEGIESFind Best Strategy for Option trade in Options & Futures.Option trading strategies are lucrative, but this article talks about Strategy Augmentation or Fragmentation techniques, which can improve your returns especially in momentum stocks.3 min read
- HEDGING & RISKTrade Options beyond risks management | QuantsappOptions being priced at a fraction of the price of the underlying equity or index to which it belongs does attract a lot of attention from traders. Market participants look to trade options as an economical way to trading the same equity or index.3 min read
- EXPIRY & EVENTSTrade the Upcoming Results | QuantsappOptions being the instrument pricing in expected volatility will become more expensive ahead of the event of a corporate result , thus being a volatility indicator.4 min read
- TRADE IDEASDeploy call butterfly spread strategy in Nifty this weekConsidering the bullish momentum, the upcoming week can be approached with a low-risk strategy like Modified Long Call Butterfly Strategy in Nifty.3 min read
- VOLATILITYTypes of Vol: Historical/Realized / implied volatility options with QuantsappThe implied volatility options measure would be anywhere between 0-100%. Higher the measure, the more violent is the stock or index and the lower the number calmer is the stock or index.Analyse the implied volatility options with Quantsapp tools .3 min read
- HEDGING & RISKHere's how F&O traders can use hedging strategies to mitigate risk in equitiesThe article is an approach to understand some of the best option hedging strategies, that can help you manage your portfolio risk. The trade discussed here is of Buy stock and Buy Put.4 min read
- TRADE IDEASDeploy modified call butterfly strategy for Nifty this weekThe forthcoming week can be approached with a modified long call butterfly strategy, especially amidst prevailing bullish momentum in the markets. Nifty, this week ranged from 17,800 to 17,260.3 min read
- STRATEGIESWhat are Option spreads and how to use them to get the best returns?The biggest enemy of Option premiums is time. In this case, if the time passes it passes for both call and put options. So, option spreads help resolve this issue, the article ahead just explains the approach to option trading using option spreads.5 min read
- TRADE IDEASTraders can initiate Modified Call Butterfly strategy in Nifty this weekThe upcoming week can be approached with a modified long call butterfly strategy, especially due to prevailing bullish momentum in the markets. Nifty traded in a broader range of 17,270—17,450.3 min read
- OPEN INTERESTHow Open Interest data can be utilised in Equity InvestmentsFutures Open Interest data and its importance as an indicator of market expectations of momentum has been discussed. Good increment in OI is suggestive of incremental trading interest in a stock.3 min read
- OPTIONS BASICSUse this Multifacet evaluation & get the most from your Options trades.Multi-faceted evaluation of options trading especially on dimensions like price, time and implied volatility has been mentioned ahead and how these can be used to define an exit strategy.3 min read
- TRADE IDEASDeploy modified call butterfly spread strategy in Nifty this weekConsidering the bullish momentum, this week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.3 min read
- STRATEGIESLearn Iron Butterfly Option strategy | DecodedIts worthwhile to pursue a butterfly option strategy, like Iron Fly which is hedged strategy, though lower profits but with protection comes peace of mind led by finite loss potential.3 min read
- TRADE IDEASDeploy Short Iron Butterfly Strategy in NiftyConsidering the pause in momentum along with Option band getting tighter, the upcoming week can be approached with a hedged option strategy, short Iron Butterfly in Nifty.3 min read
- HEDGING & RISKHedging: Passive vs Active & its benefits| QuantsappTwo key types of Heding are Passive vs Active. While Passive hedging focuses on eliminating the risk, Active hedging focuses on the dual objective of reducing the risk at the same time generating some returns.3 min read
- TRADE IDEASDeploy modified call butterfly strategy in NiftyThe upcoming week can be approached with a modified call butterfly strategy, especially due to prevailing bullish momentum in the markets. Nifty gyrated between 16,180-16,534 range.3 min read
- OPTIONS BASICSOptimize Investing using Options When the Market is at an all-time High.Here are some of the very simple ideas that one can use to associate Investments with Options and get more confidence in riding this wonderful rise.4 min read
- TRADE IDEASDeploy Nifty call butterfly spread strategyConsidering the bullish momentum, the upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty, he said.3 min read
- STRATEGIESTop Option Strategies when the market is near high.Amidst a bullish fervour, with the markets at a peak, there are several option strategies which can be deployed, with some measures to long the market with peace of mind.3 min read
- TRADE IDEASDeploy low-risk modified call butterfly strategy in NiftyThe upcoming week, markets could be in consolidation, we can approach it with a low-risk strategy like a modified nifty butterfly strategy using calls.3 min read
- VOLATILITYTrading Volatility breakouts trading with Call Ratio Back Spread.Breakouts trading - Option Strategies with smaller losses and a lower probability of big profits are the best manner to handle a prolonged consolidation phase like call ratio back spread strategy.Analyse the breakouts trading with Quantsapp tools .3 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly Spread StrategyThe upcoming week, markets could be in consolidation, we can approach it with a low-risk strategy like a modified butterfly spread strategy using calls.3 min read
- STRATEGIESOptions trading | Expect a big move either way? Deploy 'Short butterfly'Market traders' endeavour is deciding the direction of market to trade breakouts. In options trading, just expectation of a breakout on either side can be used to build a strategy.3 min read
- TRADE IDEASDeploy Modified Call Butterfly strategy in NiftyIndia VIX, the fear gauge, rose nearly 7 percent over the prior week. India VIX is trading near the lowest level of pre-COVID crash, consolidation in Nifty and India VIX suggests a neutral long call butterfly strategy.1 min read
- TRADE IDEASDeploy Nifty modified call butterfly spread strategyConsidering the consolidation Nifty along with in India VIX, an upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty. Looking at the sentimental indicator, Nifty OI PCR for the week has decreased from 1.092 to 0.94.3 min read
- TRADE IDEASDeploy Nifty modified call butterfly spread strategyThe decline in India VIX, coupled with a consolidation or neutral view on Nifty, the upcoming week can be approached with a low risk approach like Nifty Butterfly strategy with the wings modified.3 min read
- STRATEGIESDeploy Butterfly and Condor strategies in a consolidating marketShubham Agarwal explains how options traders can benefit from using Butterfly and Condor options strategies in a market that is consolidating in a narrow range3 min read
- TRADE IDEASDeploy Modified Call Butterfly strategy in NiftyIndia VIX is exhibiting a decline, while the possibility of positive momentum; upcoming week can be approached with a low-risk hedged strategy like butterfly option strategy using calls.3 min read
- VOLATILITYTypes of volatility and how they can help you in Option Writing tradesVolatility are of three types are calculated differently, namely – historical, implied and future-realized volatility – which are used in decision making, especially option writing.3 min read
- TRADE IDEASDeploy Nifty modified call butterfly spread strategyConsidering the index is retracting from its strong support, a low-risk modified call butterfly spread is recommended in Nifty.3 min read
- OPTIONS BASICSDo you panic after every correction? Understanding the difference between trend & pullback can helpA pullback is different from a reversal as it is temporary. Tracking some data points can help differentiate between the two3 min read
- TRADE IDEASDeploy modified call butterfly spread strategy in NiftyConsidering the positive momentum along with the decline in India VIX, a low-risk strategy like Modified Call Butterfly will be prudent.3 min read
- HEDGING & RISKSceptical to buy at all-time high? Hedging can help you participate with peaceIf your trading positions are a mix of stocks and indices, you can use portfolio beta to calculate the hedge required. This methodology can be used against futures positions.3 min read
- TRADE IDEASDeploy Nifty modified call butterfly spread strategyConsidering the positive momentum along with a decline in India VIX, the upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.3 min read
- EXPIRY & EVENTSAMC Entertainment saga: Here's how to make money from Gamma SqueezeGamma is second-order derivative of the underlying, namely the rate of change in delta. Gamma tends to show its characteristics close to expiry. Find ahead a gamma trading strategy.3 min read
- TRADE IDEASDeploy Nifty modified call butterfly spread strategyWith decline in India VIX, considering the positive momentum in Nifty, the upcoming week can be approached with a low-risk strategy like Nifty butterfly strategy using calls with modification.2 min read
- EXPIRY & EVENTSTrading fast moves leveraging early half of the expiry with limited riskThe fast moves can be well leveraged without even taking an un-limited risk using Backspreads. Since we are buying extra options, the strategy has a limited risk profile.3 min read
- TRADE IDEASDeploy modified call butterfly spread strategy in Bank NiftyThere has been put writing accumulation, along with a long builtup on OI front, suggesting to approach the markets with a low risk strategy like BankNifty butterfly strategy.2 min read
- STRATEGIESIs buying low & selling high an apt strategy?Buying low selling high might sound good in theory but in a real-world of trading, buying high selling higher could be a more practical strategy. Is buying low & selling high an apt strategy? Let's find out.3 min read
- TRADE IDEASDeploy modified Put Butterfly spread strategy on Nifty this weekThere has been a strong call accumulation at the higher strikes , with a sequence of Short – Short covering, forthcoming week can be approached with a modified put butterfly spread.3 min read
- HEDGING & RISKZero-cost spreads: When, how and risk managementZero-cost spreads are a good way to mitigate losses in adverse moves and to make profits in your directional bets in especially a sideways market. A ratio spread means buying near options and selling multiple lots of far options to neutralize the cost and premium outflow.4 min read
- TRADE IDEASDeploy Modified Call butterfly spread strategy on NiftyConsidering the mix of long built up and short covering was seen in the market towards the end of the week, along with the decline in India VIX, the market can now be approached with a low-risk strategy3 min read
- STRATEGIESBull call spread / Bear Put Spread When, Why & How?Bull Call spread and Bear put spread, learn how to use vertical spreads and when they can be beneficial. Read on to know what parameters influence, while adopting these strategies .3 min read
- TRADE IDEASDeploy Nifty modified call butterfly spread strategyConsidering the momentum prevalent in the market, one can deploy a strategy which is relatively risk free, in the form of a modified call butterfly spread.3 min read
- EXPIRY & EVENTSHere's how to adapt to changes at the time of market expiry, and how to adjust your tradesTrades need to adapt to changing gamma which can be achieved by simply increasing and decreasing your bet size in different expiry times.3 min read
- TRADE IDEASDeploy Modified Put Butterfly Spread strategy on Nifty this weekConsidering the OI cycle in Nifty consisting of short-short covering cycle, along with a rise in VIX, pursue a possible low risk strategy like a modified put butterfly spread.3 min read
- OPTIONS BASICSSix rules to follow if you are an Options trader with small capitalOptions trading is complex endeavour, unlike cash market investing, a startup guide indicating certain pointers, which are presented ahead. The six rules should help option traders.4 min read
- TRADE IDEASDeploy Bank Nifty Call Butterfly Spread strategyAfter considering the up move from lows and cool off in India VIX from a higher level, for further up move, Modified Call Butterfly strategy can be deployed in Bank Nifty.3 min read
- OPTIONS BASICSAlternating your futures trades with 'deep-in-the-money options'In a favourable market 'deep-in-the-money options' allows almost similar participation to futures trading. In an adverse market, its non-linear behaviour, provides decent benefit.4 min read
- TRADE IDEASDeploy Bank Nifty Modified Put Butterfly strategyLong unwinding open interest has been observed in BankNifty, followed by short at end of the week, its prudent to approach the Bank Nifty with a low risk Modified Put Butterfly.2 min read
- VOLATILITYGetting stopped in Option trades due to market volatility? A few fixes can prevent themTechnical analysis is a very popular subject specially within the Indian trader’s community and if you follow option charts and applying technical analysis on it, you need to be aware to adjust your levels for theta.4 min read
- TRADE IDEASDeploy Modified Call Butterfly strategy on Nifty this weekConsidering the longs Built up in Nifty and decline in India VIX has given a positive outlook, it is prudent to approach market with low-risk strategy like Modified Call Butterfly.3 min read
- OPTIONS BASICSShubham Agarwal explains when to avoid and buy Out of the Money OptionsOTM options appear cheap from a price basis, but its not the case. Implied volatility of an OTM Put option will usually be higher than the ATM, implying buying OTM puts is costly.4 min read
- TRADE IDEASDeploy Nifty Put Butterfly Spread strategy to beat volatility in the marketConsidering the mix of unwinding and short covering, the week went by saw a continuous increase in VIX and intraday swings. It is prudent to approach the market with a low-risk strategy like Modified Put Butterfly.2 min read
- OPTIONS BASICSWaiting to buy during a correction? How about making additional returns from this 'intention'?It is usually assumed that options are instruments for active traders. The returns from options trading suitably, along side investment portfolio can help amplify overall returns.4 min read
- TRADE IDEASFor Nifty, deploy Put Butterfly Spread strategyConsidering the mix of longs & short in the week gone by and last day swings in VIX, it is prudent to approach the market with a low-risk strategy like Modified Put Butterfly.3 min read
- VOLATILITYImplied volatility & Skew as an indicator of market directionOptions based indicators can be used to predict the underlying and IV is one of them. Shifts in IV levels and shifts in Skew can help generate these forecasts, says Shubham Agarwal.4 min read
- TRADE IDEASFor Bank Nifty, deploy Put Butterfly spread strategyWith underperformance continuing along with sector rotation, it is prudent to approach the market with a low-risk strategy like Modified Put Butterfly Spread.2 min read
- OPTIONS BASICSAlter your trades time-frame to market conditionsModifications in the holding period can yield an edge in trades and hence, as market conditions change, so should your holding period for buy options.4 min read
- TRADE IDEASDeploy Nifty Modified Put Butterfly spread strategyConsidering the mix of Longs & Short over the week gone by, and the intraday swings in VIX, it is prudent to approach the market with a low-risk strategy3 min read
- OPTIONS BASICSLive Selling Options : Selling Options in a consolidating markets with Quantsapp .Consolidating markets can be an opportunity to make returns from selling options. A consolidating market with high relative IV and high relative IV percentile can be an opportunity for weekly Selling options on the Index with Quantsapp Analytical tools.4 min read
- TRADE IDEASDeploy Nifty Modified Put Butterfly Spread strategyNifty upcoming weekly Option data reflects broad range of Call addition 14,700-15,500 strike in which immediate resistance stands at 14,800 level and vital resistance stands at 15,000 strike.3 min read
- HEDGING & RISKHere's how you can bring down risk of consecutive lossesTo bring down the risk to consecutive losses, the easiest way out is to reduce the capital per trade and be more patient to generate returns from a more consistent approach over thoughts of quick money.3 min read
- TRADE IDEASDeploy Nifty Modified Put Butterfly spread strategyConsidering the cautious outlook depicted by nervousness in the F&O data, Modified Put Butterfly strategy is advised.3 min read
- OPTIONS BASICSDifferentiating between pullback & reversal using derivative built-upsA pullback is temporary in nature within the cycle, whereas reversals are changes in the cycle itself, says Shubham Agarwal. If we can successfully differentiate between pullback and reversal, we can optimise our trades accordingly.3 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly Spread to protect downsideA falling India VIX opens the room for further upside. Thus, a low-risk Call Butterfly Spread is recommended to protect the downside and participate in the upside momentum.3 min read
- OPTIONS BASICSUn-complicating Options trading for short term tradesThere is a belief that if you can create complicated multi-leg strategies, you’ll be able to benefit more from the market but at times this is inverse.4 min read
- TRADE IDEASFor Nifty, deploy Modified Call Butterfly spread strategyConsidering the positive outlook depicted by the F&O activity this week, Modified Call Butterfly is advised.2 min read
- HEDGING & RISKCall ratio backspread—a strategy to increase ROI while keeping risk low in fast-moving scenarioAn option trader can add significant value to their portfolio by choosing the right strategy in the right market scenario.3 min read
- TRADE IDEASWeak sentiment at high level advocates hedge in Nifty via Modified Put ButterflyRise in India VIX also has raised caution. Thus, deterioration in futures landscape and sentimental indicators at this height advocates a hedge in Nifty via Modified Put Butterfly.3 min read
- EXPIRY & EVENTSWorried about a GameStop re-run in India? Shubham Agarwal tells you how to guard against itJust like you buy life insurance to cover personal risks, it should be a rule of thumb to buy protection in “trades where you can lose more than your capital invested.3 min read
- TRADE IDEASDeploy modified Put Butterfly strategy in Bank Nifty to create hedge against weaknessModified Put Butterfly is a 4-legged strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike.3 min read
- HEDGING & RISKCurtail risk with Modified Call Butterfly to trade longs confidently after riseTo optimally utilise the strategy, we need to account for two factors—profit potential and loss-limiting capabilities.4 min read
- OPTIONS BASICSGauge extremes using these 4 handy F&O indicatorsThese indicators should not be used to go against the tide, short a relentlessly rising market or to catch a falling knife. These can be used to manage the intensity of the trades or for investing in some hedges for those ' just - in - case ' scenarios.4 min read
- TRADE IDEASDeploy risk-averse modified Call butterfly strategy on NiftyThe India VIX kept up the rise inching higher by a point this week. This could be seen as prudence as the upcoming results led volatility could jeopardise the ongoing up move in any stock.4 min read
- EXPIRY & EVENTS3 tactics to trade earnings season with only positive surprisesPost result analytics especially right after the numbers are out should be traded via a combination of Buy and Sell position in options instead of just a simple long position in options.4 min read
- OPTIONS BASICSwriting an option - Ways to benefit from options writing without getting hurtIf one is trading only in futures, options writing can be added to the trade by Selling Higher Call against Bought future or Selling Lower Put against sold future.Analyse the writing an option with Quantsapp tools .3 min read
- OPTIONS BASICSOptions trading principles: Trading Guide for starter, refresher for pro byOptions being scientific instruments, they are easier to be rule-bound. If these rules are followed religiously, the probability of coming out profitable over a period of time becomes very high.4 min read
- STRATEGIESWhy non-directional options strategies are a must have in trading portfolioNon-Directional strategy means a combination of options capable of making a pay-off that is indifferent to which direction the underlying is going to go.4 min read
- TRADE IDEASNifty in, strong long cycle, deploy modified call butterfly strategyLongs, rising optimism and lowering risk makes a case for slow upward momentum to continue, hence Modified Call Butterfly on Nifty is advised.4 min read
- STRATEGIESKill the time in Options, trade direction with OTM ButterflyOn the positive side with options trade, considering the directional outlook and net long or neutral option there would be no risk of loss due to the directional adversities.4 min read
- TRADE IDEASHedge Nifty via bear Put spread strategyThe call writers in 13000 both in upcoming weekly as well as monthly expiry indicate a hurdle around current levels for further upside.4 min read
- HEDGING & RISKWhen and how of proactive hedging to trade with peaceOptions have primarily been instruments that can help hedge the risk of those who would want to avoid them.4 min read
- TRADE IDEASHedge Bank Nifty via Modified Put Butterfly strategyModified Put Butterfly strategy keeps the lower but constant profits in case ofdownward breakout.This is a fairly risk averse and a universal strategy.4 min read
- OPTIONS BASICSOption Triggers: A stimulus for upcoming moveThe data point that we will look at is of Strike wise Open Interest along with ongoing Underlying price.This comparative analysis has been capable of creating a reasonable argument for a sizable move.3 min read
- TRADE IDEASDeploy fairly risk-averse Modified Call butterfly strategy on NiftyFall in India VIX indicates ease in commotion despite of recent rise.However, considering the rise already in place a nimble footed bullish strategy of Modified Call Butterfly is advised.3 min read
- OPTIONS BASICSSystematize equity investments with OptionsBenefit of Systematizing the Investment with Options is that at times the returns earned out of the premium income would out do the profits made out of the core investments thanks to the very consistency it would deliver.3 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly strategyThe fall in India VIX indicates ease in commotion despite of recent rise.However, considering the rise already in place a nimble footed bullish strategy of Modified Call Butterfly is advised.4 min read
- STRATEGIESScared of buying after a rise, conquer the fear by staggered Option strategiesRisk lies in either a digestive consolidation or a sudden market realization of the exaggeration followed by a strong pullback.3 min read
- TRADE IDEASDeploy Nifty Hedge vis Modified Put Butterfly strategyRise in India VIX in last three weeks despite a rising regime in Nifty raises caution.Rather dragged longs rolled into November should be traded with prudence especially amid rising IVs, hence hedge via Nifty Modified Butterfly is advised.4 min read
- VOLATILITYTrack implied volatility, a handy risk indicator and avoid accidentsThe implied volatility figure indicates the market assessment of volatility and could be higher or lower than the historical volatility.3 min read
- TRADE IDEASDeploy modified Put butterfly strategy in Bank NiftyWith the upcoming weekly expiry also being the monthly expiry, looks like the excessive writing was missing on an aggregate basis pushing the overall OIPCR a tad bit up last week.4 min read
- STRATEGIESRatio Spreads: One of the best option trades if handled with careRatio Spreads would give a lot of advantage against the peril of Time Value Decay.The stop loss would be minuscule and over passage of time would outperform single Call.4 min read
- TRADE IDEASCan Deploy Modified Put Butterfly strategy on NiftyModified Put Butterfly is a 4 - legged strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike.3 min read
- OPTIONS BASICSOption, an instrument for every market mood swingWhen we know the indices are behaving in a way where shocks are taken very seriously and immediate impact is lethal, it makes sense to invest in a lower strike Put Buy on the first sign of weakness.3 min read
- TRADE IDEASDeploy modified call butterfly strategy in Bank NiftyModified Call Butterfly is a 4 - legged strategy which is fairly risk averse.4 min read
- EXPIRY & EVENTSTrade results season efficiently by using OptionsWith the hep of Options as a trading instrument and as a gauge of current expectations, we can try to avoid any accidents in our trading.4 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly StrategyThe trace of longs mid - week was a positive surprise for the Bank Nifty, indicating that confidence was coming back.4 min read
- HEDGING & RISKShaky at the top, keep a hedge handy: Shubham Shubham-Agarwal-March-2in the hunky - dory times the kind of dent the September expiry week made recently could be taken as one indication that there could be a pull back or a serious halt in the uptrend.3 min read
- TRADE IDEASHedge Nifty via Modified Put Butterfly StrategyThe ongoing pessimism along with lack of confidence in the late week respite indicates expectation of impending room on the downside, hence Modified Put Butterfly is advised.4 min read
- HEDGING & RISKKeep Options handy when bargain hunting to avoid risk of reversalThe Put option gives a flexibility of booking part profits as well without having to touch the holding just by switching the Put option higher.4 min read
- TRADE IDEASHedge Bank Nifty through Modified Put Butterfly as weakness is expected to continueConsidering the persistent Shorts along with the fall already in place further weakness is advised to be traded with Modified Put Butterfly.4 min read
- STRATEGIESF&O Classroom: Strategy Covered Call a sweetener to long tradesWe are going through the current times where we already have recent rise on our back, yet the optimism is that of a further rise.4 min read
- TRADE IDEASNifty rebound amid lack of participation concerning, hedge Nifty via Modified Put ButterflyThis is a fairly risk averse and a universal strategy.3 min read
- STRATEGIESF&O Classroom: Improve options strategy pay-off by removing unproductivityMore often than not, option traders would treat the premium paid as sunk cost and write it off.4 min read
- TRADE IDEASHedge Nifty using Modified Put Butterfly strategyWith commotion at the top coupled with incremental shorts in stock futures and rise in risk levels, hedge Nifty using Modified Put Butterfly.3 min read
- OPEN INTERESTOpen Interest: A unique market data to read market consensusOpen Interest is the number of contracts outstanding.From an analytical perspective the amount of interest in the derivative instrument that the contract represents.3 min read
- TRADE IDEASHedge Nifty by deploying Modified Put ButterflyOn the open interest front for Nifty, the story still remains the same.Expiry of August series contracts brought some bit of reduction in OI..4 min read
- OPTIONS BASICSRange breakouts beget many question, trade effectively with optionsBreakouts are good but the aftermath of it brings along many questions on the immediate course of action.4 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly strategyLast week, with the help of mid - week upticks Nifty did manage to post a gain of close to 2 % on the charts.3 min read
- STRATEGIESFine tune your options strategy pay-off with staggered execution; here's howWe need to decide on Action Points and Action Plan, considering the god, bad and ugly scenarios possible.4 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly strategyOn the open interest front, Nifty futures had lack interest during the week.The daily increment or decrement in the OI in futures was limited to maximum of 2.5 percent this week.3 min read
- OPTIONS BASICSHow to trade options effectively in consolidation?Being an options trader, one thing is for sure that apart from the direction of the move we are always worried about the speed of the move.3 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly strategyThe week ended with rather strong OIPCR at 1.64.India VIX also gave into the consolidation argument and kept up with the falling spree, hitting yet another multi - month low.3 min read
- TRADE IDEASDeploy Nifty Modified Call Butterfly strategyModified Call Butterfly is a 4 - legged strategy where 1 lot of Call close to current underlying level is bought against that 2 lots of higher strike calls are sold and 1 more lot of Call is bought but closer to the call sold strike4 min read
- OPTIONS BASICSFunding the way out of buy options to trade rise after riseOptions are the ideal instrument to resort to in situations like today after the Nifty reversed 70 % of the drop caused by COVID - 19 and is still standing strong.4 min read
- TRADE IDEASDeploy short iron butterfly strategy in NiftyNifty OIPCR which is already on a high horse made yet another recent high around 1.9, only to be humbled by the latter consolidation.The week ended with almost unchanged OIPCR.4 min read
- STRATEGIESAt the top, trade 'Collar ' to fight cynicismCollar is defined as a strategy where one is Long on Future(Underlying) at the same time Long on Out of the Money(Lower) Put and Short of Out of the Money Call(Higher).3 min read
- TRADE IDEASHedge Nifty using Modified Put Butterfly strategyThe implied volatility of Nifty is now comparable to the pre - pandemic levels.This kind of complacency is a little scary considering the changing landscape of the world economy.3 min read
- OPTIONS BASICSTrade efficiently! What impacts option premium and howIf Underlying Price goes up Call Premium would go up and Underlying Price goes down Call Premium would go down.4 min read
- TRADE IDEASDeploy Modified Call Butterfly strategy in NiftyWith Nifty close to its highest level of recent weeks, OIPCR still has room to rise which is comforting.The overall composition at least for Nifty does favor the bulls.3 min read
- OPTIONS BASICSHow to trade options when bottom is too far away and expected room at the topConsidering that the risk premiums would already have taken a beating by now, the options generally in such situations would be relatively inexpensive.4 min read
- TRADE IDEASHedge Bank Nifty via Bear Put SpreadMore Longs than Shorts in Bank Nifty makes the index relatively week with the option composition affirming the nervousness in sentiment hence a hedge via Bear Put Spread is advised.4 min read
- OPEN INTERESTBanknifty Open Interest :Open interest put call ratio a sentimental indicator to trade wise with QuantsappBear Put spread is a moderately bearish strategy.The strategy is built by Buying a Put close to the current market price of the underlying and selling same expiry Put but of a strike lower than the Put bought.4 min read
- TRADE IDEASHedge Nifty positions by deploying Bear Put SpreadWhen OIPCR goes far beyond more than one, the mood turns from Bullish to Extremely Bullish.Similarly, if OIPCR is closer to 0 than 1 the situation indicates extremely bearish mood.4 min read
- VOLATILITYFind out when Implied Volatility is high or low to trade options profitablyBest way to deal with extremes in IVs is by instantly applying a Trailing Stop Loss mechanism to trading and start locking profits as soon as they are in sight.3 min read
- TRADE IDEASDeploy modified call butterfly strategy in Bank NiftyModified Call Butterfly is a 4 - legged strategy where 1 lot of Call close to current underlying level is bought against that 2 lots of higher strike calls are sold and 1 more lot of Call is bought but closer to the call sold strike3 min read
- STRATEGIESChasing big run-ups effectively with option spreadsThere is a bright possibility that straight forward single option or a future could get a rather unpleasant early exit.In case one is ready to hold the draw down(maximum notional loss posted) would keep the profile of the trade rather unattractive.4 min read
- TRADE IDEASAdopt Modified Call Butterfly strategy for Bank NiftyModified Call Butterfly is a 4 - legged strategy where 1 lot of Call close to current underlying level is bought against that 2 lots of higher strike calls are sold and 1 more lot of Call is bought but closer to the call sold strike.4 min read
- HEDGING & RISKHow to protect profits, restrict losses after rally amid a crisisKeeping the trades with smaller horizons and tighter stop losses could pay - off eventually.3 min read
- TRADE IDEASAdopt Modified Call Butterfly Strategy for NiftyAfter first three gaining sessions this week there was a bit of hiccup but Nifty maintained the gains and ended the week with over 5 % gains.3 min read
- VOLATILITYOptimal application of options in low Implied Volatility timesDifferent regimes of IV gives different opportunities, hence optimizing on those with different option trading approaches is always profitable than having one standard approach.3 min read
- TRADE IDEASHedge Nifty positions by deploying Bear Put SpreadThe weak sentiment indicated for this week, along with possibility of ongoing consolidation to continue is advised to be traded with Bear Put Spread.3 min read
- STRATEGIESHow Modified Put Butterfly strategy can help you in downward breakout?Modified Put Butterfly is a 4 - legged strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike.3 min read
- OPTIONS BASICSWhat are dividend discounts in futures and options and how to deal with them?Fine tuning trades and making them dividend discount - ready is essential in the result season.3 min read
- OPTIONS BASICSUse Options to Bet Against or in Favour of Ongoing ConsolidationOptions, despite being a perishable asset, can come handy in times of choppy consolidations.4 min read
- TRADE IDEASUse Modified Put Butterfly strategy on Nifty amid ongoing lullModified Put Butterfly is a 4 - legged strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike.3 min read
- OPTIONS BASICShow to detect and trade-in ping pong market set ups with optionsOne of the direct effects of the headline - driven market is that none of the developments last long.Positive or negative news gets digested fast and gets ready to unwind the very next day.3 min read
- TRADE IDEASDeploy modified Put Butterfly strategy for NiftyAt this juncture, Dominance of shorts this week should be taken seriously and safeguard from any further fall should be created.3 min read
- EXPIRY & EVENTSHow to trade on earnings effectively with OptionTrading results or earnings could very well be yet another opportunity to make money out of avenues other than regular directional trading, making this a very unique diversification.4 min read
- TRADE IDEASTime to turn slightly cautions after April rally; deploy ‘Bear Put Spread’ on NiftyBear Put spread is a moderately bearish strategy built by buying a Put close to the current market price of the underlying and selling the same expiry Put, but of a strike lower than the Put bought.4 min read
- EXPIRY & EVENTSWhy Options trading is must to tackle COVID-19-led market uncertaintiesBouts of volatility and uncertainty come with opportunities.Especially lucrative enough to get the long - term investors glued to the screen for attractive prices.3 min read
- TRADE IDEASF&O Expiry Week Strategy: Deploy a Protective Hedge via Nifty Bear Put SpreadBear Put spread is a moderately bearish strategy.The strategy is built by Buying a Put close to the current market price of the underlying and Selling the same expiry Put but of a strike lower than the Put bought.2 min read
- HEDGING & RISKMake these three adjustments to your trade to improve risk-reward profileAs COVID - 19 pandemic turns the entire market more headline - driven than driven by solid economic data.The moves upward or downward become vulnerable to reversals and respite.3 min read
- TRADE IDEASCan go slightly risk-averse; deploy Bank Nifty Modified Call Butterfly SpreadModified Call Butterfly is a 4 - legged strategy where 1 lot of Call close to current underlying level is bought against that 2 lots of higher strike calls.2 min read
- VOLATILITYHandling volatility in options premiums while trading directionThe most talked - about India VIX index is often used as a proxy to the Implied Volatility of Nifty Options.Nifty went lower and VIX went higher and the other way round in the recent bounce.4 min read
- TRADE IDEASDeploy Nifty modified Put Butterfly strategy amid high volatilityThe only characteristic of the F & O market that remains reminiscent of the turmoil is the very level of implied volatility.Which reminds of the fact that any complacency derived from this up move could turn completely misleading just in a session’ s time.3 min read
- HEDGING & RISKCritical times bring out core utility of options — risk managementWhen the times are choppy, it makes sense to get back to the basics and keep trading simple and economical using Single Options.4 min read
- VOLATILITYBroken Wing Butterfly is slow but steady strategy in making money amid volatilityBroken Wing Butterfly is an option trading strategy, that is slow but steady in making money and one of the most inexpensive ways to trade3 min read
- TRADE IDEASKeep trades limited and protected amid COVID-19; deploy Nifty Modified Put Butterfly spreadConsidering the unpredictability of the pandemic, it makes sense to keep the trades limited and protected.Hence, Modified Butterfly on monthly series options is advised.3 min read
- VOLATILITYAs volatility may prevail, deploy Modified Put Butterfly strategyOn the sentimental front, the implied volatility reached a record high this expiry overshooting the 2008 levels also.The event at this juncture the implied volatility remains high with India VIX at unprecedented level of 70.3 min read
- EXPIRY & EVENTSTrading expensive options amid COVID-19 uncertainties - here’s what you need to knowThe Back ratios are typically known for their pro - volatility characteristics.Here, we have a forecast that we could have a big move in a day or two.3 min read
- EXPIRY & EVENTSWhat should investors do today? Avoid trading pandemic-driven uncertainties3 min read
- OPTIONS BASICSContra trades should only to be taken with cautionThe best possible solution is to have a synthetic call in place where one goes long on futures and buys a Put of a strike slightly lower than the current market price.4 min read
- TRADE IDEASHedge your trading positions by deploying ‘Bear Put Spread’ on NiftyTrapped Option Writers may extrapolate weakness if any in the coming days. Hence, an index hedge is advised with bear Put spread on Nifty profiting from the extension of the ongoing meltdown.3 min read
- STRATEGIESNifty down over 7% in a week: Time to go contra? Here are a few strategiesThe best possible solution to go contra is to have a synthetic call in a place where one goes long on futures and buys a Put of a strike slightly lower than the current market price.4 min read
- TRADE IDEASNifty may breach 12,000 on downside in expiry week; deploy Bear Put SpreadBear Put Strategy is built by Buying a Put close to the current market price of the underlying and selling the same expiry Put but of a strike lower than the Put bought.3 min read
- TRADE IDEASNifty may dip towards 12,000, deploy Modified Put Butterfly strategyModified Put Butterfly is a strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike3 min read
- OPTIONS BASICSMonetise options beyond options tradingAny significant change in Premium without any significant change in underlying price and time to expiry can now be attributed to change in Implied Volatility.3 min read
- OPTIONS BASICSUse structured ‘Option Trading’ for steady returns; here are 3 factors to keep in mindOptions trading is more and more becoming an integral part of trading especially after benchmark indices topped global charts for highest Options Volumes.3 min read
- TRADE IDEASInvestors should hedge Nifty positions by deploying Modified Put ButterflyModified Put Butterfly is a 4-legged strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike.||3 min read
- TRADE IDEASDeploy Bank Nifty Hedge via Bear Put Spread in the Budget weekBear Put spread is a moderately bearish strategy. The strategy is built by Buying a Put close to the current market price of the underlying and selling the same expiry Put but of a strike lower than the Put bought.3 min read
- EXPIRY & EVENTSJanuary series expiry week: Top 4 caveats for trading day after expiry dayAs a monthly event for all the underlying stocks as of now, ‘Expiry’ changes a lot of equations and is capable of a momentary upsetting a well-established order.3 min read
- TRADE IDEASDeploy Bear Put Spread in Bank NiftyUnder-performance in the Bank Nifty, led by long unwinding, and the proximity to major hurdle advocates a hedge, hence a Bear Put Spread is advised, says Shubham Agarwal.3 min read
- TRADE IDEASBank Nifty may remain rangebound; apply Bear Put Spread strategy for hedgingIndia VIX is also picking up the pace calling for bigger moves along with overnight gaps playing out. India VIX continued to scale higher from 12 to 14.08 rising by 2 points for the week that saw wild swings in the market either direction.3 min read
- TRADE IDEASSupport for Nifty at 12,200, hedge with Bear Put spreadWeekly congestion and monthly series equal congestion (both call and put) in Nifty signify support in 12,200 on the lower side, while there is no strong immediate hurdle on the higher side.3 min read
- OPTIONS BASICSHow to effectively handle a range-bound marketWhile we are trading within the range, there generally is a directional impulse, just that it is short-lived | That very fact makes the market oscillating | So, to adapt to this first modification is to reduce the time horizon of the trades, says Shubham Agarwal4 min read
- OPTIONS BASICSThree handy Options trading resolutions for 2021Data analytics has always been essential for creating basis for any trading system.3 min read
- OPTIONS BASICSHow to trade cheaper options? You can consider these 3 modifications while tradingHigher premiums are attributed to higher implied volatility and lower premiums are attributed to lower implied volatility.3 min read
- TRADE IDEASDeploy Modified Call Butterfly strategy in NiftyUnderlying forecast optimism is turning into over-optimism hence following the longs in Nifty shall be done with a bit of prudence, hence Modified Call Butterfly is advised.3 min read
- STRATEGIESWith market at record high, account for both greed and gear with modified Call ButterflyAfter a couple of gyrations in the range I believe Modified Butterfly could be the best way to trade upcoming gyration along with accounting for an end of it3 min read
- TRADE IDEASNifty near all-time high, deploy Long Call Butterfly strategyAfter many weeks this time, the long interest addition resumed as over 40 percent stocks added longs for the week.3 min read
- VOLATILITYDo you think when to book out? Implied Volatility can be used to sense reversalsThe volatility that we are talking about is a forward-looking figure because we are valuing an option to exercise or let go of a transaction on a future date.3 min read
- HEDGING & RISKHedge you portfolio by deploying 'Long Put Butterfly' in DecemberLong Put Butterfly Spread is the moderately bearish strategy when executed with lower strikes than the current market price.2 min read
- VOLATILITYMarkets at record highs! But, did you hedge positions to safeguard from volatilityTo hedge a position in cash (participating F&O stocks) & futures market, use options, and most of the times the cost of hedging wouldn’t go beyond 3-4 percent even if the hedge is kept for a good 20+ sessions4 min read
- TRADE IDEAS'Laze in Nifty calls for caution, deploy bear put spread strategy'Surviving the unwinding after the trading holiday, Bank Nifty managed to carry forward net 10 percent longs into the coming week.3 min read
- STRATEGIESRatio call spreads a remedy at the cost of responsibilityOptions trading shows us how convenient it is to accentuate the benefit of a favorable situation, or many times, how convenient it is to minimise the impact of an unfavourable situation4 min read
- STRATEGIESTraders could use OTM Spreads to monetize that far-fetched moveConsidering the expected return in the estimation, take all the trade you want to use OTM spreads that make sense in terms of Reward to Risk profile without being worried about anything3 min read
- OPEN INTERESTShorts Covering : How to trade short covering rallies effectively with Quantsapp .Short Covering is an open interest activity where there is reduction in open interest and rise in price.Live Shorts Covering data analysis with the help of Quantsapp shorts covering analytical tools.3 min read
- TRADE IDEASBanknifty Calls - Bullish momentum building in banknifty calls, deploy modified call butterfly strategy with QuantsappFor banknifty calls, the range of 29,000-30,000 remains fairly congested. However, the level of 29,500 is also congested with banknifty calls and if taken out could open up a quick 2 percent room for the index.Analyse the banknifty calls with Quantsapp tools .3 min read
- OPTIONS BASICSSensex back above 39,000: Here’s why profit locking is apt for rising marketAlways remember that a compensatory position added to any existing trade to aide profitability will always come at a cost and it can only restrict negative impact and not reverse it3 min read
- STRATEGIESHow OTM vertical spread can help investors save money in October seriesIn the case of weekly expiries, if we are mildly bullish or bearish it can be translated into trading action very easily by selling more Calls/ Puts against Calls/Puts bought3 min read
- OPTIONS BASICSHere's why Option trading is only for investors and not for tradersOptions have been more recognised as investors' choice than traders', especially in more developed markets where Options have been available as instruments of trade for more decades3 min read
- OPEN INTERESTFurther short covering likely in expiry week, deploy bull call spread strategyOTM bull call spread is created by buying a higher call compared to the current market price and simultaneously selling an even higher call.3 min read
- TRADE IDEAS28,000 on Nifty Bank likely to act as resistance; deploy ‘Modified Call Butterfly’ strategyThe weekly increment of OI in the index was over 4 percent. On the other hand, Bank Nifty futures had long additions of almost 9 percent and an equal amount of short unwinding2 min read
- STRATEGIESNifty closed above 11,000-11,050: Is it a breakout or another gyration?Situations like these where there is strong consensus seem to have been built against the range breakouts, trading against the tide for that minor possibility of a very big move becomes very difficult3 min read
- STRATEGIESBy adding options to trading, investors can even make gyrations a profitable tradeThe series of ups and downs in any direction makes trading worth3 min read
- TRADE IDEASNifty likely to see a bounce back this week: Deploy 'Modified Call Butterfly' spreadAmong options for Nifty, we still have decent congestion in 10,800 and 11,000 Puts for the monthly series, while on the upside the highest call congestion is far off at 11,7003 min read
- STRATEGIESModified Butterfly: The best way to trade upcoming gyrationEspecially with the weekly expiries now available for trading, deploy a butterfly strategy with centre strike at the expected and empirically proven upper bound or lower bound.3 min read
- VOLATILITY3-step guide to construct a pro-volatility option portfolio for bargain huntingSuch are the times where conventional wisdom says that we should now start nibbling in the beaten-down names. More often than not, we eye good stock which is well-capitalized, big-sized, and most probably an index constituent3 min read
- TRADE IDEASNifty likely to see short covering in August expiry week; deploy Bull Call SpreadOptions data for Nifty during the week saw Put writers unwinding aggressively while Call writers were seen active at 11,000. Put writers were seen active at 10,700 strikes2 min read
- TRADE IDEASShort covering likely to take Nifty higher; deploy Bull Call Spread this weekConsidering excessive short accumulation in the index and options data showing intermediate support at 11000 which is likely to hold good, short-covering drive to earlier breakdown level of 11,300-11,350 is possible2 min read
- VOLATILITYAre you getting stopped out? Escape volatile gyrations with ‘Out of The Money’ spreadsWhen market forces are pushing our trade into unfavourable territory, we should devise a mechanism which could reap the benefits of favourable move when the tide turn.3 min read
- TRADE IDEASNifty likely to move towards 11,300, deploy bull-call spread to take advantageBull-call spread is a bullish strategy that is executed when the instrument is expected to see a bounce back or move higher.2 min read
- STRATEGIESHow to use call ratios for upward reversalsCall Ratios are executed by Buying Call Options and Selling Two lots (most of the time) of higher strike Call options3 min read
- TRADE IDEASNifty likely to see a bounce back towards 11,300; deploy ‘Bull Call Spread’Despite Nifty breaching crucial support, reluctance among Put writers shows a possible short-term bottom in place and likely capitulation by bears in the coming week which can fuel the momentum on the upside.2 min read
- OPEN INTERESTTechnical Classroom: Detecting and trading the extremes | nifty pcr ratio - QuantsappIt is prudent to book out of trading strategies favoring preceding direction and be ready with low risk reversal strategies like nifty pcr ratio & Live pcr nifty, Bull Call/ Bear Put Spreads involving higher Calls/ Lower Puts.3 min read
- TRADE IDEASBank Nifty likely to see a bounce: Deploy ‘Long Call Butterfly Spread’ this weekAmid recent weakness, Bank Nifty has come down reasonably closer to the Put congestion.2 min read
- OPTIONS BASICSMarket situations: Articulating lack of conviction against lack of confidenceOption bought and sold will take care of the fact that, no matter how long we stay in the trade, the time value is being funded to a certain extent.4 min read
- TRADE IDEASNifty likely to remain weak; deploy Long Put Butterfly Spread this weekBank Nifty after holding 30,000 for almost two months breached the level on July 19. The index seems to have lost the interest of Put writers2 min read
- HEDGING & RISKWhat are Operational Hedges and how it is used to counter pullbacksWe are not buying Puts against portfolios, but we are intentionally selecting a set of strategies which can save us from any move that is surprising and is out of ordinary.3 min read
- OPEN INTERESTWhat is Open Interest Put Call Ratio, and why is it a handy indicator of the market mood?Typically, one shall be watchful as soon as OIPCR reaches its reasonably historic bottom or top like that of preceding 52 weeks.3 min read
- TRADE IDEASExpect rangebound trade; deploy Modified Put Butterfly Spread on Bank NiftyAs we are trading weekly options, faster time decay will be beneficial to the strategy. Maximum Profit is made if the Index closes next to the strike of the options sold2 min read
- OPEN INTEREST4 ways in which traders can sense market's direction by using participation dataSensing fresh directional impulse or expected halt in on going directional move becomes easy and such directional impulses can be used, if not as principal argument yet as a supporting argument for creating or unwinding a trade3 min read
- TRADE IDEASNifty likely to consolidate in a range; deploy Iron Butterfly SpreadNifty options data for the upcoming weekly expiry has support at 11,700 while at the higher end, the resistance is placed at 12,0003 min read
- EXPIRY & EVENTSStrategies for investment, trading ahead of Budget 2019We will revisit some of the tips and tricks that can come in handy as far as investments and trading is concerned3 min read
- HEDGING & RISKUse know-loss strategies to avoid placing stop losses for medium-term tradesMoney management requires having to know the potential to win and more importantly the maximum capital which is at risk at all times3 min read
- TRADE IDEASBank Nifty PCR Today : Bank Nifty to trade in a range this week; deploy Call Butterfly Spread with QuantsappBank nifty pcr today - live pcr ratio analysis with Quantsapp .The upcoming week, markets could be in consolidation, we can approach it with a low-risk strategy like a modified butterfly spread strategy using calls.2 min read
- TRADE IDEASUpside for Nifty capped at 12,000; deploy Call Butterfly SpreadOn a week-on-week basis, OI activity is not too emphatic to signify any alteration to original Long-Long Unwinding structure, with heavy PE OI at 11,800 that could act as possible support2 min read
- TRADE IDEASNifty likely to trade in a range; deploy Call Butterfly Spread this weekThe Nifty PCR, open interest wise, stands at 1.32, keeping the room open on the upside2 min read
- OPTIONS BASICSDissect Options premiums, analyse market expectationsKeep a close watch on option premiums of an underlying, at least in the decision-making times of a fresh entry or an exit, to aid the trade decision.3 min read
- TRADE IDEASNifty Bank likely to see resistance at 32,000; deploy Bull Call SpreadBank Nifty options data for upcoming weekly expiry depicts 31,000 as strong support as aggressive Put writing is seen at 31,000 and on upside the highest Call OI is at 32,000, which can act as strong resistance3 min read
- OPTIONS BASICSUnderstanding Options biography for error-free tradingThe most crucial thing to learn in this understanding of Biography of Options is to gauge whether or not we will make money with the option trade given the longevity of my view.3 min read
- EXPIRY & EVENTSUse both Call and Put options to maximize gains ahead of election outcomeThe easiest trade to do is go short on both Call and Put. It can be done but still, avoid taking it overnight and even during the day keep a strict stop loss3 min read
- TRADE IDEASBank Nifty likely to remain in a range, deploy Iron Butterfly SpreadIt is an ideal strategy to play in a higher volatility environment when we expect to fall in volatility near the ATM strikes.3 min read
- OPTIONS BASICSHold to hold investments peacefully with the help of OptionsEvents in equity markets are like death and taxes a certainty that comes every once in a while, and brings with itself bouts of volatility.3 min read
- TRADE IDEASDeploy Call Butterfly Spread on Nifty Bank to benefit from rangebound tradeBank Nifty could be trading in the range of 30,000-30,400 in upcoming expiry, so a bullish to rangebound strategy Call Butterfly Spread is suggested3 min read
- STRATEGIESWhat are Back Ratio & Back Ratio Spreads and how to use them in times of uncertaintyBack Ratio Spreads is an option strategy where one would Sell the Call or Put close to the current market price of the underlying and Buy 2 Lots of Higher Call/ Lower Put.3 min read
- STRATEGIESHow butterfly spread can be a much easier solution than options tradeButterfly fits as a correct strategy, hence would like urge you to have Butterfly as a Strategy in your option artillery as it could come very handy at times.4 min read
- TRADE IDEASDeploy low risk Call Butterfly Spread strategy on Nifty in truncated weekOption writers were seen placing bets on either side to take advantage of the time decay. The Nifty PCR open interest wise stands at 1.54, keeping the room open for the upside3 min read
- OPEN INTERESTOpen Interest: A tool to put market expectations into perspective | long unwinding with QuantsappThe Reduction in both Price and Open Interest could be labeled as Long Unwinding and on the flipside of the same logic, Increment in Price with Reduction in Open Interest could be seen as Short Covering. Analyse the long unwinding with Quantsapp tools.4 min read
- EXPIRY & EVENTSTop 4 facts which investors should know about trading in early half of expiryWriting options in the early half of expiry is naturally lower on probability scale whereas trading options as a buyer for directional breakouts may be more lucrative if forecasts are available.3 min read
- EXPIRY & EVENTSDemystifying Time Decay; “Theta” the ultimate friend in expiry week"When trading for an expected range of expiry, the handiest tool to decide on the level might be looking at the Open Interest congestions with Highest Put OI being the support area and Highest Call OI being the resistance," says Shubham Agarwal of Quantsapp Private Limited3 min read
- TRADE IDEASNegative sentiments in Nifty may continue; deploy bearish trade through Bear Put SpreadDecoding participant’s activity suggests, FIIs were buyer in start of the week but reversed their bias aggressively on the short side.2 min read
- OPTIONS BASICS3 Reasons why you should never miss taking a short trade in marketMost of the trading indicators do have long and short signals and short are the ones which can be amplified to the favour if used correctly.3 min read
- TRADE IDEASWorried about volatility in market? Deploy Long Strangle in Nifty for making quick profitHistorically, India VIX holds negative correlation with the market. The upper band of VIX is placed at 21.2 min read
- HEDGING & RISKStuck with huge portfolio losses? Use ‘Options’ in a falling marketBuying Puts is a simple strategy where an At the Money put is bought on the Index like Nifty with a notional value of the portfolio adjusted for portfolio’s beta.3 min read
- OPEN INTERESTOpen Interest: An additional tool for traders to decode market expectationsOpen Interest or OI is the total number of open contracts in an instrument outstanding in the market at a given point in time. These contracts are generated by transactions between buyers of instrument and sellers of them.3 min read
- TRADE IDEASNifty likely to see a pullback towards 10,800; Deploy Bull Call Spread to maximize profitA sharp bounce back from the level of 10300 raises the expectation of the up move towards 10800-11000 levels. The Market-wide PCR OI moved to 1.43 indicating Put writers were active again with the base formation at 10000-10400.2 min read
- STRATEGIESChoosing the right strategy to make the most out of a Bullish Forecast?The non-linear payoff of Options still ensures that the risk can remain limited if the forecast doesn’t work in favour.3 min read
- TRADE IDEASPNB spoils party for bulls! Deploy Put Condor Spread in BankNifty to counter volatilityWith bearish undertone prevailing further downside could not be ruled out. Thus low-risk hedge strategy Long Put Condor is recommended in Bank Nifty.2 min read
- STRATEGIESNot sure where Mr. Market is headed? Option guts can still help you profitBuying futures needs a surety of the direction as the payoff is linear but Options can still help you add returns due to its Non-Linear Payoff behaviour," says Shubham Agarwal CEO & Head of Research at Quantsapp Private Limited.3 min read
- VOLATILITYDeploy Put Butterfly Spread to beat volatility till February expiryWith Market data point suggesting cautious stand, it is imperative to hedge the portfolio for any further downward risk. Thus a hedge strategy, Put Butterfly Spread in Nifty with higher Reward to risk of 3.65:1 is recommended2 min read
- STRATEGIESAfraid to trade seeing mayhem on D-St? Time to have ‘Butterfly’ in your tradeThe butterfly can be formed by Selling 2 Lots of a particular strike Call/Put & buying one higher Call/Put & one Lower Call/Put of the equal distance up and down.3 min read
- EXPIRY & EVENTSDo you ‘Fear’ entering markets post Budget? Use option strategies to make money"Greed & Fear are the emotions which override rational thinking and today we’ll learn about how to get rid of one of them called ‘Fear’. Correction in a bull market is what everyone ‘desires’ to buy but most investors miss on the opportunity and end up waiting for a better price or they buy too early and lose," says Shubham Agarwal of Quantsapp Private Limited.3 min read
- EXPIRY & EVENTSBudget 2018: Deploy option strategies ahead of Budget for a profitable trade on ThursdayAs a trader or an investor, all we want to know is how much points of impact in Nifty does that comes to. Can we assign a simple number to this in terms of Nifty levels?3 min read
- OPTIONS BASICSSensex, Nifty @ record highs: Do you know when to book profits in a rising market?"Each investor has different behavior and risk appetite. Based on their preferences of the trade-off between risk and reward, one of the above Exit Styles can help"3 min read
- EXPIRY & EVENTSMake most out of the earnings season using 4 options trading strategiesThe price of an option may at times be more sensitive to volatility than to the underlying. To trade this rationally, one should consider deploying a Spread over just naked options.3 min read
- STRATEGIESFutures vs Options: Which strategy can help you bag you maximum profit?Futures provide a linear payoff while Options are non-linear which creates multiple scenarios. Before taking a trade the base analysis is generally on the underlying and then a strategy can be formed in Futures & Options (F&O). The question is how to differentiate between both and when to choose Buying Options over Futures?3 min read
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