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While trading options what should be a practical reference point — spot or futures?
Options are derivatives of the underlying but are tracking spot prices as a reference point practical? In the real world, a more practical approach would be to track futures as a reference point for trading options. Let us understand this i
How to use back ratio spreads strategy in trading biased volatility
Every few months there comes a time when there is lack confidence on direction but lot more conviction on volatility. In such times generally we do go on a backfoot and avoid to trade. However, one such strategy that comes in handy while tr
Here's how you can trade Options during the corporate results season
Every quarter we are presented with opportunities to trade due to the announcement of corporate results. These results create movements in the stock prices. As we all know more movement means more opportunities to trade. How do Options come
Track implied volatility, a handy risk indicator and avoid accidents: Shubham Agarwal
Implied Volatility is the volatility figure that the Option Premium trading in the market indicates when we feed in the rest of the 4 factors. Now, why is this important? Because the implied volatility figure indicates the market assessment
Kill the time in Options, trade direction with OTM Butterfly: Shubham Agarwal
Now, when the market tones down the momentum, this time value becomes a killer. The loss led by time value decay in many cases may overshadow the profit from the direction. So, in such cases, where the time can Kill the Trade, we will proac
Use this Multifacet evaluation & get the most from your Options trades.
In my experience of being in the Options Trades for almost 2 decades now, I have seen many traders get out of trading this scientific instrument too soon, sometimes even within just a few trades. The word scientific may have the reasons for
Options trading | Expect a big move either way? Deploy 'Short butterfly'
Nifty has been consolidating in a range of 350 points since the last month and a half, with volatility slipping to new lows. A formation like this is generally followed by a breakout on either side. Here's how you can go about it. The Fore
What are Options Greeks and how to use them as your trading guide
Options Greeks are turned away most of the time due to their heavy mathematical calculations and not being so simple to comprehend. So, instead of trying to derive values of such Options Greeks, let us try to just define them and at least g
Dysfunctional risk removal with Option strategy improvement: Shubham Agarwal
Option as an instrument was created to manage risk. Bringing this into the context of our equity options trading, the Calls and Put that we buy from the Sellers of the options, are in principle taking away the risk element from us Buyers of
