Candlesticksignals
Part 2 Candle Stick PatternUnderstanding Call and Put Options
There are two basic types of options: Call Options and Put Options.
Call Option:
A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specific price (called the strike price) before a specific date (called the expiry date).
Put Option:
A put option gives the holder the right, but not the obligation, to sell an underlying asset at a specific strike price before expiry.
Part 1 Candle Stick PatternRisks and Rewards in Option Trading
Option trading offers tremendous potential—but it comes with unique risks. Understanding these is essential:
Limited Time: Options lose value as expiry nears due to time decay (Theta).
Volatility Risk: Sudden drops in volatility can reduce option prices unexpectedly.
Liquidity Risk: Some options have low trading volume, making it difficult to enter or exit positions.
Leverage Effect: Options amplify both gains and losses.
Margin Requirements (for Sellers): Option writers must maintain sufficient margin, as potential losses can be large.
MIDCAP INDEXHello & welcome to this analysis
The index after a steep decline formed a bullish Harmonic Bat reversal pattern.
At the 50% retracement level it has formed a three candlestick bullish signal - Upside Tasuki Gap suggesting further upside.
As long as it sustains above 51500 it could continue its up move till 54500 that is the 62% retracement and above that 57500 that coincides with the trend line resistance.
All the best






















