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Part 5 Advance Option Trading Option Chain Displays strike-wise premiums, open interest, volume, Greeks. Traders read it to predict support/resistance and market structure. Open Interest (OI) Shows number of active contracts. High call OI → resistance. High put OI → support. OI change indicates market sentiment shift. Volume in Options Measures trading activity at a price. High volume = strong interest = better reliability. Useful for volume profile and market structure analysis.
BSE:SENSEXEducation
by SkyTradingZone
Part 1 Intraday Mater Class Introduction to Option Trading Option trading is a derivative-based trading approach that allows traders and investors to profit from price movements, volatility, time decay, and even stagnant markets. Unlike equity trading—where profits depend largely on buying low and selling high—options provide multiple ways to make money, manage risk, and hedge portfolios. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time period. The seller (writer) of the option has the obligation to fulfill the contract if the buyer exercises it. Options are widely traded in global markets and are extremely popular in India through NSE’s F&O segment, particularly in Index options (NIFTY, BANKNIFTY, FINNIFTY, SENSEX) and stock options.
BITSTAMP:BTCUSDEducation
by SkyTradingZone
Part 5 Advance Trading Strategies Option Trading: Risks and BenefitsBenefits- Leverage: Control bigger positions with smaller capital. - Limited Risk: Option buyers risk only the premium paid. - Flexibility: Strategies for bullish, bearish, or neutral markets. - Hedging: Protect portfolios with options. Risks- Time Decay: Options lose value as expiry approaches. - Volatility Risk: Options sensitive to changes in volatility. - Loss of Premium: Buyers risk losing entire premium if wrong. - Complexity: Strategies can be complex, require understanding.
NSE:HDFCBANKEducation
by SkyTradingZone
Part 4 Technical Vs. Institutional Option TradingAdvanced Option Trading Strategies Explained1. Straddle/Strangle- Straddle: Buy call and put at same strike, profit from big price moves (volatility). - Strangle: Buy call and put at different strikes, profit from big moves with lower cost. 2. Iron Condor- Sell OTM call and put spreads, profit from low volatility (price staying within range). 3. Butterfly Spread- Buy and sell options at multiple strikes, profit if price stays near middle strike. 4. Calendar Spread- Buy and sell options with same strike but different expiries, profit from time decay differences. 5. Ratio Spreads- Buy and sell options in different ratios, profit from volatility changes or direction.
NSE:RELIANCEEducation
by SkyTradingZone
Part 2 Technical Vs. Institutional Option Trading Types of Option Trading: Calls and Puts- Call Option: - Gives buyer the right to BUY the underlying asset. - Buyer expects price to RISE. - Example: Buy Nifty Call at 22,000 strike, profit if Nifty goes above 22,000 + premium paid. - Put Option: - Gives buyer the right to SELL the underlying asset. - Buyer expects price to FALL. - Example: Buy Nifty Put at 22,000 strike, profit if Nifty goes below 22,000 - premium paid
NSE:BANKNIFTYEducation
by SkyTradingZone
2
Part 2 Intraday Institutional TradingBest Practices for Retail Traders 1. Start with Buying Options Risk is limited. 2. Prefer ATM or Slight ITM Better stability, realistic probability. 3. Avoid Holding Overnight Unless you understand IV, theta, and event risk. 4. Track Implied Volatility Buy when IV is low, sell when IV is high. 5. Use a Trading Plan Entry levels Stop loss Target Position size 6. Don’t Chase Cheap OTM Options They expire worthless most of the time.
CRYPTO:ETHUSDEducation
by SkyTradingZone
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