PE Writing vs CE Writing – Core Difference Explained!Hello Traders!
When it comes to Option Writing , many beginners jump into selling Calls (CE) and Puts (PE) without understanding the key differences. But PE Writing and CE Writing are not just two sides of the same coin — each comes with its own psychology, risk profile, and best-use scenario. Let’s break it down so you can write options like a pro.
What is CE Writing (Call Writing)?
Definition: Selling a Call Option (CE) means you're betting that the market will not go above a certain level by expiry.
Bias: It’s a bearish to neutral strategy. You profit if the market falls or stays flat.
Common Use Case: Ideal when the market is at resistance or when data shows strong supply zones or heavy CE OI buildup.
Risk Profile: Unlimited loss if market rallies sharply — hence better when combined with hedging.
What is PE Writing (Put Writing)?
Definition: Selling a Put Option (PE) means you're betting that the market will not go below a certain level.
Bias: It’s a bullish to neutral strategy. You profit if the market rises or remains sideways above the strike.
Common Use Case: Works best when market is near support or when strong Put OI build-up suggests buyers are defending levels.
Risk Profile: Unlimited loss if market crashes — especially dangerous during high-volatility or news-driven sessions.
PE Writing vs CE Writing – Key Differences
Sentiment: PE writing is bullish-biased, CE writing is bearish-biased.
Market Structure: PE writers want market to stay above their strike, CE writers want market to stay below theirs.
Risk Exposure: Both carry unlimited loss potential — proper SL and hedging are essential.
Expiry Day Behavior: CE premiums fall faster in strong downtrends; PE premiums decay faster in rising markets.
Rahul’s Tip
Don’t blindly sell PE or CE just because premiums are high. Use data like OI shifts, support/resistance, VIX, and structure to choose the right side.
Conclusion
Both PE Writing and CE Writing are powerful tools — if you know when and how to use them. Writing without context is gambling; writing with structure is strategy. Always trade with risk defined, bias clear, and exit planned.
Do you prefer PE or CE writing? Let me know your favorite setup in the comments!
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Institution Option Trading Part-7Regulatory & Risk Considerations
SEBI (India) & SEC (US) regulations limit speculative exposure.
Institutions must report Open Interest, Position Limits, Margin Usage.
Must adhere to VaR (Value at Risk) frameworks and internal risk policies.
Institutional Trading during Events
Earnings Seasons: Institutions use straddles/strangles for earnings plays.
Budget or RBI Policy: Protective collars/volatility trades.
Global Crisis (e.g. COVID): Use of massive protective puts (SPX, NIFTY).
VIX & Institutional Behavior
India VIX plays a vital role in determining institutional option strategies.
High VIX = buying protection, long gamma strategies.
Low VIX = selling premium, income strategies.
A Rally Born in Silence: The Canara Bank SetupCanara Bank – Multi-Timeframe Impulse Reloaded
On the 3-month timeframe, Canara Bank is staging what looks like a textbook long-term Elliott Wave impulse. With Wave (IV) bottoming out around ₹15.15 and a roaring rally taking us into Wave (V), the broader structure suggests that this could be the start of a generational uptrend, aiming toward the 2.618 extension near ₹206.
Dropping down to the daily chart, things get even more compelling. The move off the March 2025 lows at ₹78.60 is showing all the signs of a fresh impulsive structure. That low aligns precisely with the higher-degree Wave (IV), suggesting the beginning of Wave (V) is already underway. What’s particularly interesting is how the current rally is unfolding — the green Wave 3, which started from ₹83.70, appears to be extending. It has already subdivided into a clean internal five-wave structure, with blue subwaves 1 through 4 in place and blue wave 5 in progress.
This kind of extended third wave is not only typical but often the most powerful part of the move, carrying the strongest momentum. The current wave is aiming toward the 1.618 projection zone around ₹138, which would be a fitting cap for an extended third. Once this fifth subwave of green 3 completes, a corrective green Wave 4 would be due, likely shallow given the strength of the third wave, followed by one final push in green 5.
On the risk side, the structure remains intact as long as price holds above ₹102.63 — the invalidation level for the current count. A break below would suggest the impulse failed and could force a reassessment of the bias. Until then, both the short-term and long-term wave counts remain firmly aligned to the upside, with momentum backing the structure on multiple timeframes.
Chart will be updated as price action evolves.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
360 ONE – Bullish breakout360 ONE (NSE: 360ONE), a leading wealth and asset management firm in India, is showing strong bullish momentum backed by:
✅ Consistent Growth in AUM: The company continues to scale its assets under management with high-net-worth and ultra-HNI client acquisition.
✅ Strong Quarterly Results: Robust revenue growth and improving profit margins signal efficient operations and increased demand for wealth management services.
✅ Technically Sound Setup:
The stock has broken out from a key resistance zone with rising volumes.
Trading above all major EMAs (20/50/200), confirming a strong uptrend.
RSI is in bullish territory (>60), indicating momentum is intact.
✅ Sectoral Tailwind: The shift from traditional investments to managed wealth products is boosting firms like 360 ONE.
🟢 Price Action Suggests Further Upside
With growing investor confidence and institutional interest, the stock is poised for a potential 10–15% move in the near term, if it sustains above the breakout level.
Institution Option Trading Part-6Introduction to Institutional Option Trading
Institutional option trading refers to the use of options by large financial institutions such as hedge funds, pension funds, insurance companies, mutual funds, and proprietary trading desks to manage risk, enhance returns, or speculate on price movements. Unlike retail traders, institutions bring scale, research, and complex strategies to the options market.
Slide 2: Key Characteristics of Institutional Traders
Large Capital Base: Institutions trade in bulk with millions or billions of dollars.
Data Advantage: Access to premium data, analytics, and predictive algorithms.
Advanced Infrastructure: High-frequency execution systems, smart order routing.
Risk Management Focus: Use options for hedging equity, credit, FX, or commodity exposure.
Regulatory Boundaries: Subject to risk limits, compliance, and disclosures
TRUMP Tariffs ?? Lets Trade NEW GENNEW GEN
CMP 843
Buy dips till 790
SL CLB 750
TARGETS 870-970-1070-1170
Plz follow TSL in order to maximize your profits
Lets hope it'll move as per our expectations
if you like this idea 💡 --- Plz don't miss to Boost 🚀
For more info - Plz visit my profile & Follow me
Rgds,
Naresh G
SEBI Reg.RA
Washing Done - Now time to Iron out the wrinkles Whirlpool
Swing Trade Opportunity
Plz maintain all the Rates ( Entry / Exit / SL ) as per mentioned in the Chart
TSL is good to retain your profits
Lets hope it'll move as per our expectations
if you like this idea 💡 --- Plz don't miss to Boost 🚀
For more info - Plz visit my profile & Follow me
Rgds,
Naresh G
SEBI Reg.RA
NUVAMA - SwingSwing Trade Opportunity
LTP
6280
Either add on dips till 5900
with SL CLB @ 5700
OR
Buy now with SL CLB @ 5880
Targets 6400-6700-6900-7100
Plz follow TSL in order to maximize your profits
Lets hope it'll move as per our expectations
If you like this idea 💡 --- Plz don't miss to Boost 🚀
For more info - Plz visit my profile & Follow me
Rgds,
Naresh G
SEBI Reg.RA
Institution Option Trading Part-1Role of Market Makers & Liquidity Providers
Institutions often rely on market makers for tight bid-ask spreads.
Market makers hedge every trade using delta-neutral strategies.
Their presence helps institutions build or unwind large positions without disrupting prices.
Institutional Examples in Option Trading
Hedge Funds: Use volatility arbitrage, gamma scalping, dispersion trading.
Insurance Firms: Use long-dated puts to hedge annuity products.
Banks: Write structured products with option-like features (e.g., equity-linked notes).
Asset Managers: Use protective puts or collars on core portfolios.
Institution Option Trading Part-2.0Institutional Order Flow – Market Impact
Option Flow as Signal: Large trades in options market may indicate upcoming moves in underlying assets.
Unusual Options Activity (UOA): Tracked by smart money traders to anticipate institutional moves.
Dark Pools: Institutions often use off-exchange mechanisms to avoid price impact.
Tools & Analytics Used by Institutions
Volatility Surface Analysis
Greeks Sensitivity Scans (Delta, Gamma, Vega, Theta)
Skew Charts & Term Structure
Trade Cost Analysis (TCA)
Liquidity Heatmaps
Algo Execution Strategies (TWAP, VWAP)
BTC Decision Point – Are You Watching This?BTC Decision Point – Are You Watching This?
Bitcoin is reclaiming momentum after sweeping liquidity at $102.7K. It's now pushing toward major resistance at $106.1K.
But the real battle? The bearish OB at $107.2K–$108.9K — where price nuked last time.
✅ Break above = clear skies toward new ATHs
❌ Rejection = another trip to $102K or even Under $100K
🔁 Retweet if this helped
💬 Drop your bias below: Long or short?👇
UBI Union Bank of India
CMP 134
Either Buy on dips till 122
SL CLB 112
OR
Enter when it Sustains ABOVE 139.55
TGTS 140-149
Plz follow TSL in order to maximize your profits
Lets hope it'll move as per our expectations
If you like this idea 💡 --- Plz don't miss to Boost 🚀
For more info - Plz visit my profile & Follow me
Rgds,
Naresh G
SEBI Reg.RA
BITCOIN Short Position Update – June 11, 2025We are the SeoVereign Trading Team.
With sharp insight and precise analysis, we regularly share trading ideas on Bitcoin and other major assets—always guided by structure, sentiment, and momentum.
🔔 Follow us to never miss a market update.
🚀 Boosts provide strong motivation and drive to the SeoVereign team.
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Bitcoin downside perspective shared.
Currently, Bitcoin appears to have entered an overheated zone based on both Elliott Wave Theory and harmonic pattern analysis.
While it has been continuously setting new highs alongside Ethereum, the technical structure suggests the possibility of a short-term pause.
Accordingly, a bearish idea is shared.
The first target is set at 108,600.
More detailed ratio analysis and additional reasoning will be shared through an idea update once the first target is reached.
Flexible response according to market conditions is necessary.
Nifty Intraday Analysis for 13th June 2025NSE:NIFTY
Index has resistance near 25000 - 25050 range and if index crosses and sustains above this level then may reach near 25225 – 25275 range.
Nifty has immediate support near 24700 – 24650 range and if this support is broken then index may tank near 24450 – 24400 range.
Golden and Death Cross Strategy....📌 GOLDEN CROSS AND DEATH CROSS – A Classic Trend Signal
WHAT IS A GOLDEN CROSS?
A golden cross occurs when a short-term moving average (typically 50 EMA) crosses above a long-term moving average (typically 200 EMA).
This is widely seen as a bullish signal, indicating a potential long-term trend reversal to the upside.
💡 It often signals that momentum is shifting from bearish to bullish.
WHAT IS A DEATH CROSS?
A death cross is the opposite — it forms when the short-term moving average crosses below the long-term moving average.
It is considered a bearish signal, warning of a potential downtrend or trend exhaustion.
📊 APPLICATION IN TRADING
* Works well in trending markets, especially on higher timeframes such as daily or weekly
* Can be used in combination with volume, RSI, or MACD for confirmation
* False signals can occur in sideways or choppy markets
🛠️ STRATEGY TIPS
* Use golden cross to look for long setups
* Use death cross to consider shorting or exiting long positions
* Combine with risk management — no signal is perfect
💬 YOUR THOUGHTS?
Do you use golden and death crosses in your strategy? Share your insights in the comments
👇👇👇
📝 Disclaimer: This is for educational purposes only and not financial advice. Always do your own research and manage your risk.
What is Option Writing? Why 90% Traders Get It Wrong!Hello Traders!
Today, let’s break down one of the most misunderstood strategies in the options market — Option Writing . While it’s known for generating consistent income, the truth is that most retail traders get it wrong . Why? Because they don’t respect the risk, structure, and psychology behind it. Let’s understand what option writing really is — and how to do it the right way.
What is Option Writing?
Option Writing = Selling Options: You sell a Call or Put and receive a premium. If the option expires worthless, you keep the entire premium as profit.
Time Decay Advantage: Option writers benefit from Theta — the value of the option decays with time.
Range-Bound Bias: Works best in sideways or non-trending markets, especially on expiry days or low-volatility phases.
Why 90% of Traders Get It Wrong
No Risk Management: Most sellers don’t hedge or define SL. One sharp move can wipe out weeks of profits.
Overleveraging: Selling options without understanding margin, exposure, and volatility leads to quick blowups.
No Data-Based Strategy: Randomly selling options without understanding OI, IV, VIX, or market structure is a recipe for disaster.
Wrong Market Conditions: Option writing during trending or breakout phases leads to big losses — especially for naked writers.
Rahul’s Tip
Sell options only when the odds are in your favor — backed by data, structure, and proper hedging. And always treat this like a business, not a shortcut to income.
Conclusion
Option writing is a powerful income strategy, but only when done with the right mindset and discipline. Most traders lose because they sell with greed and no system. If you want to win, study the Greeks, respect the risk, and manage your capital wisely.
Are you an option writer or planning to learn? Drop your experience in the comments! Let's build this together.
Institution Option Trading Part-5Popular Strategies Tested via Option Database
IV Crush Earnings Strategy
Buy/sell options before earnings when IV is high, expecting post-earnings IV drop.
High OI Breakouts
Trade breakouts from strikes with high OI using price+OI correlation.
Skew Arbitrage
Analyze IV skew and trade underpriced/overpriced strikes accordingly.
Time Decay Capture (Theta)
Sell options with high Theta before expiry using historical decay rates.
💡 Advantages of Option Database Trading
Quantitative Edge: Allows logic-based decisions over emotion-driven trades.
Backtesting Confidence: Know the probability of success before risking capital.
Scalability: Can analyze hundreds of symbols and expiry combinations.
Automation Ready: Can link with brokers to run fully algorithmic systems.
Institution Option Trading Part-3How Option Database Trading Works (Step-by-Step)
Step 1: Data Collection
Real-time data from NSE, BSE, CBOE, or broker APIs (Zerodha, Interactive Brokers, etc.).
Store tick-level or EOD snapshots into SQL/NoSQL databases.
Step 2: Data Cleaning & Normalization
Remove missing values, align timestamps, convert formats.
Normalize values like IV to make models consistent.
Step 3: Exploratory Data Analysis (EDA)
Use Python (Pandas, Matplotlib) or R to analyze:
Option volume spikes
Volatility contraction/expansion
Unusual OI build-ups
Step 4: Backtesting Trading Strategies
Strategies like Straddle, Strangle, Iron Condor, or IV Crush are tested.
Entry/exit logic coded, and trades simulated on historical data.
Step 5: Deploying Models
Successful strategies get automated using APIs or Trading Bots.
Regular performance metrics tracked and refined.
Option Trading with Professionals Why is Option Data Important?
Pattern Recognition: Historical data helps spot repeatable patterns across expiry dates, strikes, or underlyings.
Volatility Analysis: IV and HV trends assist in detecting overpriced or underpriced options.
Liquidity Study: OI and Volume data help identify where smart money is moving.
Strategy Development: Backtesting using past data validates the strength of a strategy before real capital is deployed.
Market Sentiment Gauge: Changes in IV, OI, and skew can reflect trader sentiment and possible direction.
🧰 Core Components of an Option Database
A fully functional options database setup typically includes:
1. Options Chain Data
Captures details like Strike Price, Expiry Date, LTP, IV, Bid/Ask Spread, Greeks.
Should be stored with timestamps and unique IDs for reference.
2. Open Interest & Volume History
Time-series data showing how OI and volume evolved intraday and over time.
3. Volatility Surfaces
3D models showing how IV changes with strike and time to maturity.
4. Underlying Asset Data
Historical prices, volume, dividends, splits, news events, and earnings.
5. Event Tags
Earnings announcements, economic reports, corporate actions tagged for context during backtesting.
Institution Option Trading Part-1In today’s fast-paced financial world, where milliseconds can make a difference, Option Database Trading has become an essential tool for serious traders, quantitative analysts, and institutional investors. This strategy revolves around using structured historical and real-time data from the options market to make informed, data-driven trading decisions.
This guide will help you understand what Option Database Trading is, how it works, what tools are required, and how it can significantly improve your edge in the options market.
📊 What is Option Database Trading?
Option database trading involves the systematic storage, analysis, and utilization of large datasets from the options market to find patterns, identify opportunities, and execute trades. It typically includes:
Historical Option Prices
Implied Volatility (IV) & Historical Volatility (HV)
Open Interest (OI) & Volume
Greeks (Delta, Theta, Vega, Gamma, Rho)
Option Chain Snapshots
Corporate Actions, Earnings, News Impact
By creating or accessing an options data warehouse, traders can backtest strategies, run simulations, and refine their models using real market data.
Nifty Intraday Analysis for 12th June 2025NSE:NIFTY
Index has resistance near 25250 - 25300 range and if index crosses and sustains above this level then may reach near 25475 – 25525 range.
Nifty has immediate support near 25000 – 24950 range and if this support is broken then index may tank near 24800 – 24750 range.
Upside momentum is expected to continue.
Power of India VixWhy India VIX Matters?
✅ Predicts Market Sentiment: Spikes in VIX often precede sharp market moves.
✅ Option Pricing Insight: High VIX = Expensive Options; Low VIX = Cheaper Options.
✅ Helps Strategy Selection:
High VIX: Favor credit strategies (Iron Condor, Strangle Sell).
Low VIX: Favor debit strategies (Buy Call/Put, Spread Buy).
✅ Risk Management Tool: Helps gauge when to reduce exposure or go aggressive.
Option trading is a financial strategy where traders buy and sell options contracts — financial instruments that derive value from underlying assets like stocks or indices. Each option gives the buyer the right (not obligation) to buy (Call) or sell (Put) at a specified price before expiry.
Trading Road Map 1. Foundation Stage (Beginner Level)
Understand Markets: Equity, Commodity, Forex, Derivatives
Basic Concepts: What is a stock, index, option, futures
Learn Platforms: TradingView, Zerodha, Upstox
Risk Awareness: Avoid FOMO, control emotions, capital safety
🔹 2. Skill Building Stage (Intermediate Level)
Technical Analysis: Charts, Patterns, Indicators (MACD, RSI, Moving Averages)
Fundamental Analysis: Earnings, Balance Sheets, PE ratio
Paper Trading: Practice without risking money
Journaling: Track trades, wins/losses, and learn from mistakes
🔹 3. Strategy Development (Advanced Level)
Create Systems: Scalping, Swing, Positional
Options Mastery: Strategies like Iron Condor, Straddle, Spread
Risk Management: Position sizing, SL rules, R:R ratio
Backtesting: Validate your strategy on historical data
🔹 4. Execution & Scaling (Pro Level)
Discipline & Psychology: Stick to plans, stay unemotional
Automation & Tools: Algo Trading, Screeners
Capital Scaling: From ₹10K to ₹10L+ systematically
Diversification: Trade across assets, build passive income