Option Trading

Option trading has grown popular in the Indian derivatives market in recent times, because of the many benefits that it offers. Trading in the stock market involves buying and selling of shares as we all know. We also know that investing in the stock market is profitable but also risky due to the high volatility of the fluctuating market. Did you know that you can take advantage of this speculative nature of stock market investment? How is that possible? That is because there is another segment in stock exchange investment where futures and options of these stocks or indices can be bought or sold. This is called ‘options trading’. 

Tips and Strategy for Trading in Bank Nifty Option

Nifty is a market index introduced by the National Stock Exchange (NSE) as we all know. It consists of 50 actively traded stocks and is an equity benchmark index. It was introduced on April 21, 1996 by NSE and comprises 13 sectors of the economy. So, then what is Bank Nifty?

Option Selling Strategies for the Novice Investor: A beginner’s Guide

Option trading has gained huge popularity in recent times. Experienced and new investors are trading in options because of the flexibility that it provides. They provide a great source of income, hedge your securities against market fluctuations. Further the brokerages do not charge option traders either commission, or maintenance or inactivity fees and require no deposit minimums to be maintained.

What is Volatility index?

The volatility index meaning is an index calculated and maintained by the Chicago Board of
Options Exchange (CBOE) and based on the implied volatility of options on the S&P 500 Index.
1 Learn why knowing the VIX tends to favour long and short puts, how it is utilised as a
contrarian market predictor, and how it may be used to gauge institutional opinion.

What is Swing Trading?

Swing trading is a tactic where traders maintain their holdings over days or weeks. Although swing
traders invest more time than day traders, they nevertheless find the possibility to earn profit and
enter and cancel positions rapidly by depending on liquidity & market volatility. As a result, swing
trading features fewer initial positions, yet they generate bigger earnings and losses for traders.
Unlike day dealers, swing traders need not select to achieve a big profit from a single deal. As a
result, they open smaller positions, and the transaction costs are reduced compared to day traders.
However, they maintain their holdings overnight, thereby subject to overnight financing costs. Let’s
check out the details what is swing trading.

What Is Support And Resistance?

What does the support and resistance meaning? In economics, supply & demand meet in areas of
support and resistance. According to technical experts, market psychology as supply and demand
are both heavily influenced by these levels of support and resistance. Supply and demand factors
are deemed to have changed when these support and resistance levels are broken. New levels of
support and resistance are then expected to be formed.

What is Put Call Parity and how does it work?

The put call parity is an essential topic in option pricing and trading. Options are
derivatives, and their value depends on the interest rates, underlying assets, dividends,
anticipated volatility in asset value, and the time before the option expires. According to the
put-call parity concept, the put option, call option, and the underlying asset must all have
comparable prices.

What is Index Option?

Index options are a kind of financial derivative that allows the option holder the right but not the
responsibility to purchase or sell the value of an underlying index, such as the S&P 500 index,
at the option’s exercise price. Not a single share of stock changes hands. An index futures
contract will commonly serve as an index option’s underlying asset.

What Is Book Value Per Share (BVPS)?

Common shareholders’ equity is used to determine a company’s book value per share, abbreviatedas BVPS (short for “book value per share”). What matters most is a company’s book value, which iscalculated by subtracting its entire assets from its total liabilities rather than its market value,which is determined by the price of its shares.The book value […]

What is a Long Straddle?

Did you know? The goal of the neutral Long Straddle strategy is to benefit in highly volatile markets when investors anticipate either a prominent upward or downward price swing. When trading options, a long straddle is buying a call and a put on the same underlying asset at the same strike price and expiry date.