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Option Trading Option Greeks – The Core of Option Pricing Options are complex instruments whose prices change with many factors. To understand price behavior, traders rely on Option Greeks. Delta (Δ) Measures sensitivity of option price to underlying asset movement. Call delta ranges 0 to +1; Put delta ranges 0 to -1. Example: If Delta = 0.5, a ₹10 stock move increases option price by ₹5. Theta (Θ) Time decay. Options lose value as expiry approaches. Bad for buyers, good for sellers. Vega (ν) Sensitivity to volatility. Higher volatility increases option premium. Gamma (Γ) Measures change in Delta when the stock price moves. Rho (ρ) Sensitivity to interest rate changes (less relevant in short-term trading). 👉 Mastering Greeks is key for professional option traders because they help predict how option premiums will behave under changing conditions.
BSE:SENSEXEducation
by SkyTradingZone
6
Part 2 Support And ResistanceWhy Options Exist? Options exist to manage risk and to create trading opportunities. Think of them as financial insurance. Just like you pay a premium for car insurance to protect against damage, in options trading, investors pay a premium to protect themselves against adverse price moves. For Hedgers: Options act as insurance. A stock investor can buy a put option to protect his portfolio if the market falls. For Speculators: Options provide leverage. With small capital, traders can take large directional bets. For Arbitrageurs: Options open opportunities to exploit price inefficiencies between the spot, futures, and options markets. Key Terminologies in Option Trading Before diving deep, let’s understand some essential terms: Call Option: A contract that gives the buyer the right (but not the obligation) to buy an asset at the strike price before expiry. Example: Buying a Reliance ₹2500 Call Option means you can buy Reliance shares at ₹2500 even if the market price rises to ₹2700. Put Option: A contract that gives the buyer the right (but not the obligation) to sell an asset at the strike price before expiry. Example: Buying a Nifty 19000 Put Option means you can sell Nifty at 19000 even if the market falls to 18500. Premium: The price paid to buy the option contract. Example: If a Nifty 20000 Call is trading at ₹150, that ₹150 is the premium. Strike Price: The pre-decided price at which the option can be exercised. Expiry Date: The last date on which the option contract is valid. In-the-Money (ITM): Option that already has intrinsic value. Example: Nifty at 20000 → 19500 Call is ITM. Out-of-the-Money (OTM): Option that has no intrinsic value (only time value). Example: Nifty at 20000 → 21000 Call is OTM. At-the-Money (ATM): Option strike price is closest to current market price. Lot Size: Options are traded in predefined lot sizes, not single shares. Example: Bank Nifty option lot size = 15 units (as per 2025 rules). Option Chain: A tabular representation showing available strikes, premiums, open interest, etc. for calls and puts.
NSE:ICICIBANKEducation
by SkyTradingZone
4
Part 1 Support And ResistanceIntroduction to Option Trading The stock market offers multiple instruments to trade and invest—stocks, futures, commodities, currencies, and derivatives. Among these, Options have gained tremendous popularity worldwide because they give traders flexibility, leverage, and strategies to profit in all types of market conditions—bullish, bearish, or even sideways. At its core, an Option is a contract that gives a buyer the right but not the obligation to buy or sell an asset at a predetermined price (called the strike price) before or on a specific date (called the expiry date). This right comes at a cost, known as the premium, which is paid by the option buyer to the option seller (also called the writer). Options are widely traded on stocks, indices, commodities, and currencies. In India, for example, options on Nifty 50, Bank Nifty, Sensex, and individual stocks are among the most liquid contracts. Why Options Exist? Options exist to manage risk and to create trading opportunities. Think of them as financial insurance. Just like you pay a premium for car insurance to protect against damage, in options trading, investors pay a premium to protect themselves against adverse price moves. For Hedgers: Options act as insurance. A stock investor can buy a put option to protect his portfolio if the market falls. For Speculators: Options provide leverage. With small capital, traders can take large directional bets. For Arbitrageurs: Options open opportunities to exploit price inefficiencies between the spot, futures, and options markets.
NSE:TATASTEELEducation
by SkyTradingZone
4
XAU/USDThis XAU/USD setup is a buy trade, reflecting a short-term bullish view on gold. The entry price is 3315, the stop-loss is 3312, and the exit price is 3320. The trade seeks a 5-point profit while risking only 3 points, offering a favorable risk-to-reward ratio. Entering at 3315 indicates the trader expects an immediate upward move, possibly supported by short-term demand, a weaker US dollar, or safe-haven flows. This level may also coincide with a minor intraday support zone, where buyers are likely to defend against further declines. The target at 3320 is placed just below a resistance level, allowing profits to be secured quickly before potential selling pressure emerges. This conservative approach ensures gains are locked in without holding the position for extended periods. The stop-loss at 3312 is positioned tightly to minimize downside exposure. This disciplined risk management makes the trade suitable for scalping or short-term strategies, where small but consistent gains matter. Overall, the setup emphasizes precision and strict control over risk.
TVC:GOLDLong
by smohdyusuf66
Part 1 Master Candle Sticks PatternRisk Management in Options Position Sizing: Don’t risk more than 1–2% of capital in one trade. Stop Loss: Exit before premium erodes completely. Avoid Over-leverage: Options look cheap but risk is real. Hedge Positions: Combine with futures or other options. Psychology of Option Traders Greed: Chasing high-return trades without risk control. Fear of Missing Out (FOMO): Jumping in near expiry due to excitement. Patience: Waiting for correct setup is key. Discipline: Stick to rules, avoid revenge trading. Modern Trends in Option Trading Weekly Expiry Craze: Thursday = biggest trading day. 0DTE (Zero Day to Expiry) Options: Popular for scalping. Algo & AI Trading: Automated strategies now dominate. Retail Participation Explosion: India has seen retail option traders grow 5x in 3 years.
CRYPTO:BTCUSDEducation
by SkyTradingZone
4
Part 3 Learn Institutional TradingCall Options & Put Options Explained Options are of two types: 🔹 Call Option Gives the right to buy an asset at a fixed price. Buyers of call options are bullish (expect prices to rise). 👉 Example: If Nifty is at 22,000 and you buy a 22,100 Call Option for ₹100 premium, you pay ₹100 × lot size (say 50) = ₹5,000. If Nifty rises to 22,400, the 22,100 call is worth 300 points. Profit = (300 - 100) × 50 = ₹10,000. If Nifty stays below 22,100, you lose only the premium ₹5,000. 🔹 Put Option Gives the right to sell an asset at a fixed price. Buyers of put options are bearish (expect prices to fall). 👉 Example: If Bank Nifty is at 48,000 and you buy a 47,800 Put for ₹200 premium, lot size = 15. If Bank Nifty falls to 47,000, option value = 800 points. Profit = (800 - 200) × 15 = ₹9,000. If Bank Nifty stays above 47,800, you lose only premium = ₹3,000. So: Call = Bullish bet. Put = Bearish bet.
NSE:ICICIBANKEducation
by SkyTradingZone
6
Part 1 Ride The Big MovesIntroduction to Options Trading In the world of financial markets, options trading is considered one of the most powerful and flexible forms of trading. Unlike simple stock buying and selling, options allow traders to control larger positions with less capital, hedge their risks, and design strategies that fit different market conditions — bullish, bearish, or even sideways. An option is essentially a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specific price (called the strike price) within a given period of time. If you buy an option, you are purchasing a right. If you sell (or write) an option, you are giving someone else that right and taking on an obligation. Options are traded on stocks, indexes (like Nifty 50 or Bank Nifty in India), commodities, currencies, and even cryptocurrencies in some global markets. They are widely used by: Investors to hedge portfolios. Speculators to make money from price moves. Institutions to manage large exposures.
NSE:RELIANCEEducation
by SkyTradingZone
3
XAU/USDThis XAU/USD setup is a buy trade, highlighting a bullish outlook on gold. The entry price is 3333, the stop-loss is 3325, and the exit price is 3349. The trade is designed to capture a 16-point profit while risking 8 points, giving a balanced risk-to-reward ratio of 1:2. Buying at 3333 suggests the trader expects upward momentum, which could be supported by a weaker US dollar, easing Treasury yields, or stronger safe-haven demand amid global uncertainties. From a technical perspective, the entry level may align with a short-term support area, providing a strong base for buyers to step in. The target of 3349 is placed near a resistance zone, ensuring profits are secured before potential selling pressure re-emerges. This approach helps lock in gains while respecting market volatility. The stop-loss at 3325 is set carefully below support, limiting downside risk in case bearish momentum takes control. This disciplined approach demonstrates proper risk management, with protection against losses and a clear profit goal. Overall, this trade setup is well-suited for intraday or short-term strategies, focusing on precision, defined risk, and strong reward potential in gold’s dynamic price action.
TVC:GOLDLong
by smohdyusuf66
Part 8 Trading Master Class Calls & Puts with Real-Life Examples Call Option Example Suppose Reliance stock is trading at ₹2,500. You buy a Call Option with strike price ₹2,600, paying a premium of ₹50. If Reliance goes to ₹2,800, your profit = (2800 - 2600 - 50) = ₹150 per share. If Reliance stays below 2600, you lose only the premium = ₹50. A call option = bullish bet (you expect prices to rise). Put Option Example NIFTY is at 22,000. You buy a Put Option strike 21,800, premium ₹80. If NIFTY falls to 21,200 → Profit = (21800 - 21200 - 80) = ₹520 per lot. If NIFTY rises above 21,800, you lose only ₹80. A put option = bearish bet (you expect prices to fall). Why Traders Use Options Options are powerful because they allow: Leverage – Control large value with small money (premium). Example: Buying Reliance stock directly at ₹2,500 may cost ₹2.5 lakh (100 shares). But buying a call option may cost just ₹5,000. Hedging – Protect portfolio from losses. Example: If you hold Infosys shares, you can buy a put option to protect against downside. Speculation – Bet on market direction with limited risk. Income generation – Selling options (covered calls, cash-secured puts) generates steady income.
BSE:SENSEXEducation
by SkyTradingZone
4
PCR Trading StrategyMoneyness of Options Moneyness shows whether the option has intrinsic value: In the Money (ITM): Already profitable if exercised. At the Money (ATM): Strike price = market price. Out of the Money (OTM): No intrinsic value, only time value. Factors Affecting Option Prices (Option Greeks) Options are influenced by multiple factors: Delta: Sensitivity to underlying price changes. Gamma: Sensitivity of Delta. Theta: Time decay – options lose value as expiry nears. Vega: Sensitivity to volatility. Rho: Sensitivity to interest rates. Payoff Profiles Buyer of Call/Put: Limited loss (premium), unlimited profit. Seller of Call/Put: Limited profit (premium), unlimited or large risk.
NSE:TCSEducation
by SkyTradingZone
7
Part 2 Support And ResistanceWhy Trade Options? Leverage – You control large positions with small capital (premium). Hedging – Protect portfolio from losses. (Insurance-like function). Speculation – Bet on price movement (up, down, or sideways). Income Generation – By selling options (collecting premiums). Example in Real Life Suppose you think Nifty (index) will go up: Instead of buying Nifty futures (which needs big margin), You buy a Nifty Call Option by paying just a small premium. If Nifty rises, your profit multiplies due to leverage. If Nifty falls, your maximum loss is only the premium paid. In simple words: Options = flexibility + leverage + risk control. They are widely used by retail traders, institutions, and hedgers across the world.
CRYPTO:BTCUSDEducation
by SkyTradingZone
6
Part 1 Support And ResistanceWhat are Options? Options are a type of derivative instrument in financial markets. This means their value is derived from an underlying asset, such as stocks, indices, commodities, or currencies. An option gives you the right, but not the obligation, to buy or sell the underlying asset at a predefined price (strike price) before or on a specific date (expiry date). Types of Options Call Option – Right to buy an asset at a fixed price before expiry. Example: If you buy a call option of Reliance at ₹2,500, and the stock goes up to ₹2,700, you can still buy at ₹2,500 and profit. Put Option – Right to sell an asset at a fixed price before expiry. Example: If you buy a put option of Infosys at ₹1,500, and the stock falls to ₹1,300, you can still sell at ₹1,500 and profit. Key Terms in Options Premium – Price you pay to buy the option. Strike Price – Pre-decided price at which you can buy/sell. Expiry – The last date till which the option is valid. ITM (In the Money) – Option has intrinsic value. OTM (Out of the Money) – Option has no intrinsic value (only time value).
NSE:KOTAKBANKEducation
by SkyTradingZone
6
OIL India ViewHere’s a clean **Oil India Limited (OIL) Company Profile** without any web links: --- ## Oil India Limited – Company Profile ### Overview Oil India Limited (OIL) is a Government of India-owned Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas. It is a **Maharatna** company and one of the country’s oldest exploration and production (E\&P) firms. Established in 1959, its legacy goes back to the discovery of crude oil at Digboi, Assam in 1889. ### Headquarters * **Registered Office & Field HQ**: Duliajan, Assam * **Corporate Office**: Noida, Uttar Pradesh ### Business Operations OIL is engaged in the exploration, development, and production of crude oil and natural gas, transportation of crude oil, production of LPG, and expansion into renewable energy. Its operations cover more than 61,000 sq. km. of acreage in India, including Assam, Arunachal Pradesh, Odisha, Rajasthan, Kerala-Konkan, and the Andaman offshore region. ### Key Infrastructure * Owns a **1,157 km crude oil pipeline** from Assam to Barauni in Bihar. * Equipped with seismic crews, drilling rigs, logging units, and work-over rigs. * Operates India’s first **green hydrogen pilot plant**. ### Subsidiaries & Expansion * **Numaligarh Refinery Limited (NRL)** is OIL’s downstream subsidiary, expanding its capacity from 3 to 9 MMTPA. * Expanding into renewable energy (wind, solar, green hydrogen, and compressed biogas). ### Financial Highlights * **FY 2022–23**: Turnover ₹41,039 crore; Net Profit ₹9,854 crore * **FY 2023–24**: Revenue ₹24,514 crore; Profit After Tax ₹5,552 crore ### Strategic Goals * **Mission 4+**: Produce over 4 million metric tonnes of crude oil and 5 billion cubic meters of natural gas annually. * **Net-Zero Target by 2040**: Investing around ₹25,000 crore in green and clean energy projects. ### Renewable Energy Portfolio * Wind Energy: \~174 MW * Solar Energy: \~14 MW * Green Hydrogen pilot projects in Assam ### Workforce & Governance * **Chairman & Managing Director**: Dr. Ranjit Rath * Employees: \~6,500 (as of 2024) ### Recognition * Designated as a **Maharatna PSU** in 2023 (the 13th company to achieve this status). * Strong credit ratings from international and domestic agencies (Moody’s, Fitch, CRISIL, CARE). --- thanks
NSE:OILLong
by TheGoldenFarmsofEquity
XAU/USDThis XAU/USD setup is a sell trade, reflecting a bearish view on gold. The entry price is 3340, the stop-loss is 3347, and the exit price is 3325. The trade aims for a 15-point profit while risking 7 points, offering a favorable risk-to-reward ratio of more than 1:2. Entering a short position at 3340 signals that the trader expects selling pressure to dominate, possibly due to strength in the US dollar, rising Treasury yields, or reduced safe-haven demand. Technical indicators may also suggest resistance around the entry zone, encouraging sellers to step in. The exit price at 3325 is strategically placed near a support area, giving room for profits to be booked before a potential rebound in prices. This ensures that gains are secured without exposing the trade to unnecessary risk. Meanwhile, the stop-loss at 3347 is positioned just above a resistance level, protecting against unexpected bullish momentum. This balance of risk and reward highlights disciplined trading, where the trader minimizes losses while maximizing profit potential. Overall, this setup is well-suited for short-term strategies that capitalize on gold’s frequent intraday swings.
TVC:GOLDShort
by smohdyusuf66
Paer 4 Learn Institutional Trading Options Trading Strategies Basic Strategies Long Call → Buy call, bullish. Long Put → Buy put, bearish. Covered Call → Own stock + sell call for income. Protective Put → Own stock + buy put for protection. Intermediate Strategies Straddle: Buy Call + Put at same strike (bet on volatility). Strangle: Buy Call (higher strike) + Put (lower strike). Bull Call Spread: Buy low strike call + sell higher strike call. Bear Put Spread: Buy put + sell lower strike put. Advanced Strategies Iron Condor: Range-bound strategy selling OTM call + put spreads. Butterfly Spread: Profit from low volatility near strike. Ratio Spreads: Adjust risk/reward with multiple options. Margin Requirements & Leverage Option buyers: Pay only premium (small capital). Option sellers (writers): Need large margin (higher risk). NSE SPAN + Exposure margin system determines requirements. For example, selling 1 lot of Bank Nifty option may require ₹1.5–2 lakh margin depending on volatility.
NSE:RELIANCEEducation
by SkyTradingZone
Paer 3 Learn Institutional Trading Options Trading Strategies Basic Strategies Long Call → Buy call, bullish. Long Put → Buy put, bearish. Covered Call → Own stock + sell call for income. Protective Put → Own stock + buy put for protection. Intermediate Strategies Straddle: Buy Call + Put at same strike (bet on volatility). Strangle: Buy Call (higher strike) + Put (lower strike). Bull Call Spread: Buy low strike call + sell higher strike call. Bear Put Spread: Buy put + sell lower strike put. Advanced Strategies Iron Condor: Range-bound strategy selling OTM call + put spreads. Butterfly Spread: Profit from low volatility near strike. Ratio Spreads: Adjust risk/reward with multiple options. Margin Requirements & Leverage Option buyers: Pay only premium (small capital). Option sellers (writers): Need large margin (higher risk). NSE SPAN + Exposure margin system determines requirements. For example, selling 1 lot of Bank Nifty option may require ₹1.5–2 lakh margin depending on volatility.
NSE:ICICIBANKEducation
by SkyTradingZone
Part 1 Ride The Big MovesWhy Trade Options? Leverage: Trade larger positions with smaller capital. Hedging: Protect your portfolio against market falls. Speculation: Bet on market direction with limited risk. Income Generation: Write (sell) options to earn premium. Options Market in India Introduced in 2001 by NSE with index options. Stock options followed in 2002. India now has weekly expiries for Nifty, Bank Nifty, and FinNifty. SEBI & Exchanges regulate margin rules, position limits, and trading practices. The retail participation in options has exploded post-2020 with apps like Zerodha, Upstox, Angel One, Groww, making it extremely easy to trade.
BSE:SENSEXEducation
by SkyTradingZone
Part 1 Master Candle PatternIntroduction to Options Trading Options trading has become one of the fastest-growing segments of the Indian financial market. Once considered a playground only for institutions and advanced traders, options are now widely accessible to retail investors thanks to online trading platforms, mobile apps, and reduced brokerage costs. In India, the NSE (National Stock Exchange) is the world’s largest derivatives exchange in terms of contracts traded, with Bank Nifty and Nifty 50 options leading the charge. For retail traders, options present opportunities for hedging, speculation, and income generation, making them versatile instruments. But options are also complex. Unlike stocks, where you directly own a piece of a company, options are derivative contracts—their value depends on the price of an underlying asset. This makes them both powerful and risky if not understood properly. What are Options? An option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (strike price) before or on a specific date (expiry). Call Option → Right to buy an asset at a strike price. Put Option → Right to sell an asset at a strike price. Unlike futures contracts, option buyers are not obligated to execute the trade. They can choose to let the option expire worthless if the trade doesn’t go their way.
NSE:TCSEducation
by SkyTradingZone
1
EURUSD MULTI TIME FRAME ANALYSISHello traders , here is the full multi time frame analysis for this pair, let me know in the comment section below if you have any questions , the entry will be taken only if all rules of the strategies will be satisfied. wait for more price action to develop before taking any position. I suggest you keep this pair on your watchlist and see if the rules of your strategy are satisfied. 🧠💡 Share your unique analysis, thoughts, and ideas in the comments section below. I'm excited to hear your perspective on this pair . 💭🔍 Don't hesitate to comment if you have any questions or queries regarding this analysis.
Long
by okako_trading
Nifty & BankNifty: Elliott Wave Roadmap - Aug / Sep 2025We saw an ending diagonal (wedge) in BankNifty at 47702 lows back in March 2025. The idea was published, can 47702 be the bottom? Indeed, BankNifty unfolded in impulsive fashion, flying up to 57669 highs. Wow. Now the question: do we see a similar structure in Nifty? An ending diagonal forming in the corrections, building a base near 24325–24350? Or will it struggle? All that in this video. Market Whispers! Can you hear them? WaveTalks Profile in.tradingview.com Exciting video idea from WaveTalks. Analysis by Abhishek
NSE:NIFTY
by WaveTalks
3