Here's the Key Learning Point from the F2F of @asitbaran Sir with @vivbajaj Sir.
A Long ๐งต
๐๐
Must Read for an Option Buyer.
A Long ๐งต
๐๐
Must Read for an Option Buyer.
Long Option Gives You Wealth
๐Not to stay for long,
Option buyer must know when to trade & when not to trade.
๐Trade only in Trending Market,
Buy an option at high premium and sell it Higher.
Do not trade in the Sideways Market.
๐Stick to ATM for Higher POP.
๐Not to stay for long,
Option buyer must know when to trade & when not to trade.
๐Trade only in Trending Market,
Buy an option at high premium and sell it Higher.
Do not trade in the Sideways Market.
๐Stick to ATM for Higher POP.
๐Beware of Theta & IV
Vix 15-20 is good for Option Buying,
25 & above are on the higher side.
๐Define Risk & Leverage
The real danger is not in the market,
But in the leverage used in the market.
๐Chase Delta & Gamma,
They give enough mileage,
than theta in a trending market
Vix 15-20 is good for Option Buying,
25 & above are on the higher side.
๐Define Risk & Leverage
The real danger is not in the market,
But in the leverage used in the market.
๐Chase Delta & Gamma,
They give enough mileage,
than theta in a trending market
Sniper mindset of an Option Buyer.
"Mein sasta nehi,
Keemat vala
Option strike pe
Viswas rakhta hoon"
"Stays in the market for a shorter period of time"
"Jab trade mein,
Trend aur momentum ho to,
Theta aur decay se koi phadak nehi padta"
"Mein sasta nehi,
Keemat vala
Option strike pe
Viswas rakhta hoon"
"Stays in the market for a shorter period of time"
"Jab trade mein,
Trend aur momentum ho to,
Theta aur decay se koi phadak nehi padta"
Delta Phenomenon
The change in an Option value,
For a change in spot price
Delta Signifies directional risk.
In The Money Delta- 0.75
At The Money Delta- 0.50
Out of The Money Delta- 0.25
Two ATM is equivalent to one Future as it is almost 0.5 of the underlying.
The change in an Option value,
For a change in spot price
Delta Signifies directional risk.
In The Money Delta- 0.75
At The Money Delta- 0.50
Out of The Money Delta- 0.25
Two ATM is equivalent to one Future as it is almost 0.5 of the underlying.
Option Buying needs,
Much less Investment compared to Cash & Future,
Thus making ROI much higher for Option Buyer.
Delta & Gamma,
The two friends of Options Buyer,
Can help to propel the ROI even further
( if IV remains the same or increases with time)
with ATM becoming ITM.
Much less Investment compared to Cash & Future,
Thus making ROI much higher for Option Buyer.
Delta & Gamma,
The two friends of Options Buyer,
Can help to propel the ROI even further
( if IV remains the same or increases with time)
with ATM becoming ITM.
Mistakes to avoid,
When trading long Options
Choose a market with options,
That is liquid,
Avoid narrow bid/ask spread
Not to average in down,
In the same strike price,
Either cut your position or hold,
But never add the same Strike.
1% change in volatility= 3days of theta
When trading long Options
Choose a market with options,
That is liquid,
Avoid narrow bid/ask spread
Not to average in down,
In the same strike price,
Either cut your position or hold,
But never add the same Strike.
1% change in volatility= 3days of theta
Try to Find out script
In which
Price does not change much
But
Open Interest changes higher.
If you are trading in Banknifty
Check out the private bank movement to find out the trend.
U should have the knowledge of Support & Resistance of all the major bank if u r trading BN.
In which
Price does not change much
But
Open Interest changes higher.
If you are trading in Banknifty
Check out the private bank movement to find out the trend.
U should have the knowledge of Support & Resistance of all the major bank if u r trading BN.
One of the most effective ways to confirm an entry is through time frame confluence.
Each time frame should have the same bias.
If bullish on weekly,
Then
Daily should be having the same bullish bias along with
Hourly timeframe.
Each time frame should have the same bias.
If bullish on weekly,
Then
Daily should be having the same bullish bias along with
Hourly timeframe.
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