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Part 4 Learn Institutional TradingProtective Put When to Use: To insure against downside. Setup: Own stock + Buy put option. Risk: Premium paid. Reward: Stock can rise, but downside is protected. Example: Own TCS at ₹3,000, buy 2,900 PE for ₹50. Bull Call Spread When to Use: Expect moderate rise. Setup: Buy lower strike call + Sell higher strike call. Risk: Limited. Reward: Limited. Example: Buy 20,000 CE @ ₹100, Sell 20,200 CE @ ₹50. Bear Put Spread When to Use: Expect moderate fall. Setup: Buy higher strike put + Sell lower strike put. Risk: Limited. Reward: Limited.
NSE:NIFTYEducation
by SkyTradingZone
2
Part 1 Ride The Big MovesIntroduction to Options Trading Options trading is one of the most flexible and powerful tools in the financial markets. Unlike stocks, where you simply buy and sell ownership of a company, options are derivative contracts that give you the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time frame. The beauty of options lies in their strategic possibilities — they allow traders to make money in rising, falling, or even sideways markets, often with less capital than buying stocks outright. But with that flexibility comes complexity, so understanding strategies is crucial. Key Terms in Options Trading Before we jump into strategies, let’s understand the key terms: Call Option – Gives the right to buy the underlying asset at a fixed price (strike price) before expiry. Put Option – Gives the right to sell the underlying asset at a fixed price before expiry. Strike Price – The price at which you can buy/sell the asset. Premium – The price you pay to buy an option. Expiry Date – The date the option contract ends. ITM (In-the-Money) – When exercising the option would be profitable. ATM (At-the-Money) – Strike price is close to the current market price. OTM (Out-of-the-Money) – Option has no intrinsic value yet. Lot Size – Minimum number of shares/contracts per option. Intrinsic Value – The real value if exercised now. Time Value – Extra premium based on time left to expiry.
NSE:HDFCBANKEducation
by SkyTradingZone
1
XAU/USDThis XAU/USD setup is a buy trade, reflecting a bullish outlook on gold prices. The entry price is 3337, the stop-loss is 3331, and the exit price is 3350. The trade targets a 13-point profit while risking 6 points, offering a favorable risk-to-reward ratio of over 1:2. Buying at 3337 suggests the trader anticipates upward momentum, possibly supported by a weaker US dollar, softer bond yields, or rising safe-haven demand. The target at 3350 is set near a potential resistance level to secure profits before possible selling pressure. The stop-loss at 3331 is kept tight to control losses if the market reverses. This setup is best executed during strong bullish momentum or after breakout confirmation.
TVC:GOLDLong
by smohdyusuf66
Part 2 Support and ResistanceIntroduction to Options Trading Options trading is one of the most flexible and powerful tools in the financial markets. Unlike stocks, where you simply buy and sell ownership of a company, options are derivative contracts that give you the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time frame. The beauty of options lies in their strategic possibilities — they allow traders to make money in rising, falling, or even sideways markets, often with less capital than buying stocks outright. But with that flexibility comes complexity, so understanding strategies is crucial. Key Terms in Options Trading Before we jump into strategies, let’s understand the key terms: Call Option – Gives the right to buy the underlying asset at a fixed price (strike price) before expiry. Put Option – Gives the right to sell the underlying asset at a fixed price before expiry. Strike Price – The price at which you can buy/sell the asset. Premium – The price you pay to buy an option. Expiry Date – The date the option contract ends. ITM (In-the-Money) – When exercising the option would be profitable. ATM (At-the-Money) – Strike price is close to the current market price. OTM (Out-of-the-Money) – Option has no intrinsic value yet. Lot Size – Minimum number of shares/contracts per option
NSE:TATASTEELEducation
by SkyTradingZone
2
Option Trading Practical Trading Examples Let’s take a real-world India market scenario: Event: Union Budget Day High volatility expected. Strategy: Buy Straddle (ATM CE + ATM PE). Result: If NIFTY jumps or crashes by 300 points, profits can be significant. Event: Stock Result Announcement (Infosys) Medium move expected. Strategy: Strangle (slightly OTM CE + OTM PE). Result: Lower cost, profitable if stock moves big. Risk Management in Options Trading Options can wipe out capital quickly if used recklessly. Follow these rules: Never risk more than 2% of capital per trade. Avoid over-leveraging — options give leverage, don’t overuse it. Use stop-losses. Avoid buying far OTM options unless speculating small amounts. Track implied volatility — don’t overpay in high-IV environments.
BSE:SENSEXEducation
by SkyTradingZone
3
Part 3 Learn Institutional TradingNon-Directional Strategies Used when you expect low or high volatility but no clear trend. Straddle When to Use: Expecting big move either way. Setup: Buy call + Buy put (same strike, same expiry). Risk: High premium cost. Reward: Large if price moves sharply. Strangle When to Use: Expect big move but want lower cost. Setup: Buy OTM call + Buy OTM put. Risk: Lower premium but needs bigger move to profit. Iron Condor When to Use: Expect sideways movement. Setup: Sell OTM call + Buy higher OTM call, Sell OTM put + Buy lower OTM put. Risk: Limited. Reward: Premium income.
OKX:BTCUSDEducation
by SkyTradingZone
4
Part 8 Trading Master ClassProtective Put When to Use: To insure against downside. Setup: Own stock + Buy put option. Risk: Premium paid. Reward: Stock can rise, but downside is protected. Example: Own TCS at ₹3,000, buy 2,900 PE for ₹50. Bull Call Spread When to Use: Expect moderate rise. Setup: Buy lower strike call + Sell higher strike call. Risk: Limited. Reward: Limited. Example: Buy 20,000 CE @ ₹100, Sell 20,200 CE @ ₹50. Bear Put Spread When to Use: Expect moderate fall. Setup: Buy higher strike put + Sell lower strike put. Risk: Limited. Reward: Limited.
NSE:RELIANCEEducation
by SkyTradingZone
2
Part 1 Master Candlesticks PatternDirectional Strategies These are for traders with a clear market view. Long Call (Bullish) When to Use: Expecting significant upward movement. Setup: Buy a call option. Risk: Limited to premium paid. Reward: Unlimited. Example: NIFTY at 20,000, you buy 20,100 CE for ₹100 premium. If NIFTY closes at 20,500, your profit = ₹400 - ₹100 = ₹300. Long Put (Bearish) When to Use: Expecting price drop. Setup: Buy a put option. Risk: Limited to premium. Reward: Large if the asset falls. Example: Stock at ₹500, buy 480 PE for ₹10. If stock drops to ₹450, profit = ₹30 - ₹10 = ₹20. Covered Call (Mildly Bullish) When to Use: Own the stock but expect limited upside. Setup: Hold stock + Sell call option. Risk: Stock downside risk. Reward: Premium income + stock gains until strike price. Example: Own Reliance at ₹2,500, sell 2,600 CE for ₹20 premium.
NSE:BANKNIFTYEducation
by SkyTradingZone
4
Part 9 Trading Master ClassIntroduction to Options Trading Options trading is one of the most flexible and powerful tools in the financial markets. Unlike stocks, where you simply buy and sell ownership of a company, options are derivative contracts that give you the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time frame. The beauty of options lies in their strategic possibilities — they allow traders to make money in rising, falling, or even sideways markets, often with less capital than buying stocks outright. But with that flexibility comes complexity, so understanding strategies is crucial. Key Terms in Options Trading Before we jump into strategies, let’s understand the key terms: Call Option – Gives the right to buy the underlying asset at a fixed price (strike price) before expiry. Put Option – Gives the right to sell the underlying asset at a fixed price before expiry. Strike Price – The price at which you can buy/sell the asset. Premium – The price you pay to buy an option. Expiry Date – The date the option contract ends. ITM (In-the-Money) – When exercising the option would be profitable. ATM (At-the-Money) – Strike price is close to the current market price. OTM (Out-of-the-Money) – Option has no intrinsic value yet. Lot Size – Minimum number of shares/contracts per option. Intrinsic Value – The real value if exercised now. Time Value – Extra premium based on time left to expiry.
NSE:HDFCBANK1!Education
by SkyTradingZone
2
niftyThe Nifty trade setup signals a buy entry at 24,634, aiming to capture potential upside momentum driven by positive sentiment or technical strength. The stoploss is placed at 24,604, restricting downside risk to 30 points, ensuring tight risk management if the market moves against the position. The target exit is set at 24,695, offering a profit potential of 61 points, giving a favorable risk-to-reward ratio of about 1:2. This setup may be supported by bullish technical patterns, upward trendline support, or strong buying interest near key levels. Traders should watch for intraday price action and market breadth to confirm the bullish bias. Strict adherence to the stoploss is essential to preserve capital, while timely profit booking at the target can lock in gains and ensure disciplined trading results.
TVC:GOLDLong
by smohdyusuf66
XAU/USDThis XAU/USD setup is a buy trade, showing a bullish outlook for gold. The entry price is 3369, the stop-loss is 3364, and the exit price is 3379. The trade aims for a 10-point profit while risking 5 points, giving a favorable risk-to-reward ratio of 1:2. Buying at 3369 suggests the trader anticipates upward momentum, potentially supported by a weaker US dollar, lower Treasury yields, or increased safe-haven demand. The target at 3379 is set near a resistance area, allowing profits to be booked before potential selling pressure appears. The stop-loss at 3364 limits downside risk if the market turns bearish. This setup is ideal for short-term trading with disciplined execution and proper risk management.
TVC:GOLDLong
by smohdyusuf66
Target hit on XAU/USD On 13/08/2025, the XAU/USD trade successfully reached its target, delivering a strong and profitable outcome. The trade was planned using a combination of technical analysis and market fundamentals, focusing on key support-resistance levels and price action signals. Once the entry was triggered, gold prices moved consistently toward the target, showing clear momentum in the anticipated direction. A weaker U.S. dollar and ongoing global economic uncertainty further supported bullish movement in gold. The trade never came close to the stop loss, which reflects the accuracy of the setup and the effectiveness of the strategy. Achieving the target reinforced the importance of disciplined risk management and sticking to the trading plan without emotional interference. This win on 13/08/2025 not only provided a solid return but also strengthened confidence in the overall trading approach, proving that patience and precise execution can consistently lead to profitable results in XAU/USD trading.
TVC:GOLDLong
by smohdyusuf66
xau/usd This XAU/USD trade setup is a buy trade, designed for a very short-term move in gold prices. The entry price is 3346, the stop-loss is set at 3342, and the exit price is 3348. The trade aims for a small 2-point profit while risking 4 points, meaning the risk-to-reward ratio is lower than 1:1, which makes it suitable only for quick scalp trading strategies. Buying at 3346 suggests the trader expects a slight upward movement, possibly triggered by short-term momentum, minor support holding, or quick price fluctuations during active market hours. The target at 3348 is very close to the entry, meaning this trade relies on precise timing and fast execution to capture small gains. The stop-loss at 3342 is set just below the entry to limit losses if the market moves against the position. Given the tight range, any sudden volatility could hit the stop-loss quickly. This type of trade requires constant monitoring, rapid decision-making, and disciplined risk control. While the profit target is small, consistent scalp trades like this can add up over time if executed with accuracy and strict trading discipline.
TVC:GOLDLong
by smohdyusuf66
Part 1 Ride The Big Moves Common Mistakes to Avoid Holding OTM options too close to expiry hoping for a miracle. Selling naked calls without understanding unlimited risk. Over-leveraging with too many contracts. Ignoring commissions and slippage. Not adjusting positions when market changes. Practical Tips for Success Backtest strategies on historical data. Start with paper trading before using real money. Track your trades in a journal. Combine technical analysis with options knowledge. Trade liquid options with tight bid-ask spreads.
NSE:HDFCBANKEducation
by SkyTradingZone
3
Part 3 Institutional TradingRisk Management in Options Even though options can limit loss, traders often misuse them and blow accounts. Key risk tips: Never risk more than 2–3% of capital on one trade. Understand implied volatility — high IV inflates premiums. Avoid selling naked options without sufficient margin. Always set stop-loss rules. Understanding Greeks (The DNA of Options Pricing) Delta – How much the option price changes per ₹1 move in stock. Gamma – How fast delta changes. Theta – Time decay rate. Vega – Sensitivity to volatility changes. Rho – Interest rate sensitivity. Mastering the Greeks means you understand why your option is moving, not just that it’s moving.
NSE:BANKNIFTYEducation
by SkyTradingZone
2
Part4 Institutional TradingWhy Traders Use Options Options aren’t just for speculation — they have multiple uses: Speculation – Betting on price moves. Hedging – Protecting an existing investment from loss. Income Generation – Selling options for premium income. Risk Management – Limiting losses through defined-risk trades. Basic Options Strategies (Beginner Level) Buying Calls When to Use: You expect the price to go up. How It Works: You buy a call option to lock in a lower purchase price. Risk: Limited to the premium paid. Reward: Unlimited upside. Example: Stock at ₹100, buy a call at ₹105 strike for ₹3 premium. If stock rises to ₹120, your profit = ₹12 – ₹3 = ₹9 per share. Buying Puts When to Use: You expect the price to go down. How It Works: You buy a put option to sell at a higher price later. Risk: Limited to the premium. Reward: Significant (but capped at the strike price minus premium). Example: Stock at ₹100, buy a put at ₹95 for ₹2 premium. If stock drops to ₹80, profit = ₹15 – ₹2 = ₹13.
OKX:BTCUSDEducation
by SkyTradingZone
3
Part6 Institutional TradingIntroduction to Options Trading Options are like a financial “contract” that gives you rights but not obligations. When you buy an option, you are buying the right to buy or sell an asset at a specific price before a certain date. They’re mainly used in stocks, commodities, indexes, and currencies. Two main types of options: Call Option – Right to buy an asset at a set price. Put Option – Right to sell an asset at a set price. Key terms: Strike Price – The price at which you can buy/sell the asset. Expiration Date – The last day you can use the option. Premium – Price paid to buy the option. In the Money (ITM) – Option has intrinsic value. Out of the Money (OTM) – Option has no intrinsic value yet. At the Money (ATM) – Strike price equals current market price. Options give traders flexibility, leverage, and hedging power. But with great power comes great “margin calls” if you misuse them.
TVC:GOLDEducation
by SkyTradingZone
1
Part7 Trading Master ClassOption Chain Key Terms Let’s go deep into each term one by one. Strike Price The predetermined price at which you can buy (Call) or sell (Put) the underlying asset if you exercise the option. Every expiry has multiple strike prices — some above the current market price, some below. Example: If NIFTY is at 19,500: 19,500 Strike → ATM (At The Money) 19,600 Strike → OTM (Out of The Money) Call, ITM (In The Money) Put 19,400 Strike → ITM Call, OTM Put Expiry Date The last trading day for the option. After this date, the contract expires worthless if not exercised. In India: Index options (like NIFTY, BANKNIFTY) → Weekly expiries + Monthly expiries Stock options → Monthly expiries 3.3 Call Option (CE) Gives you the right (not obligation) to buy the underlying at the strike price. Traders buy calls when they expect the price to rise. 3.4 Put Option (PE) Gives you the right (not obligation) to sell the underlying at the strike price. Traders buy puts when they expect the price to fall.
BSE:SENSEXEducation
by SkyTradingZone
2
XAU/USD This XAU/USD trade setup is a sell trade, showing a bearish outlook on gold prices. The entry price is 3350, the stop-loss is set at 3357, and the exit price is 3335. The trade aims for a 15-point profit while risking 7 points, giving a favorable risk-to-reward ratio of more than 1:2. Selling at 3350 suggests the trader expects gold prices to move lower, possibly due to a stronger US dollar, firm bond yields, or reduced safe-haven demand in the market. The target at 3335 is placed near a potential support level where price could slow down or reverse, allowing the trader to secure profits. The stop-loss at 3357 is positioned just above the entry to protect against unexpected upward movement. Since the stop is relatively tight, precise timing is essential—preferably after confirmation of resistance holding or a bearish candlestick pattern forming. This setup is suitable for short-term trading, balancing profit potential with controlled risk. Sticking to the plan without emotional adjustments and following disciplined risk management can help achieve consistent success in XAU/USD trades.
TVC:GOLDShort
by smohdyusuf66
Part7 Trading Master ClassPractical Tips for Success Backtest strategies on historical data. Start with paper trading before using real money. Track your trades in a journal. Combine technical analysis with options knowledge. Trade liquid options with tight bid-ask spreads. Final Thoughts Options are like a Swiss Army knife in trading — versatile, powerful, and potentially dangerous if misused. The right strategy depends on: Market view (up, down, sideways, volatile, stable) Risk tolerance Timeframe Experience level By starting with basic strategies like covered calls or protective puts, then moving into spreads, straddles, and condors, you can build a strong foundation. With practice, risk management, and discipline, options trading can be a valuable tool in your investment journey.
NSE:AXISBANKEducation
by SkyTradingZone
8