Get started

Community ideas

AFFLE INDIA: Bullish TriangleUsually this wave structure forms in an impulsive sequence as wave 4 . It consists of 5 sub waves as wave-a , wave-b , wave-c, wave-d and a final setback wave-e . Each of these waves consists of three wave internal structure. Each of the waves should not break their extreme points. The final confirmation to enter the position comes when the price gets close above the level of wave-d. The minimum target of the pattern is just a poke above the level of wave-b and just above the level of wave-3 of the impulsive count. There is also a guideline to predict the target of this pattern which is known as triangular thrust. The triangular thrust is the measurement of the distance from the level of wave-a to the level of wave-b . This measured length should be kept at the point of completion of wave-e (conservative approach) or to the breakout level of wave-d to get the target of this pattern (aggressive approach). Trading strategy: Buy on CMP 909 and keeping the SL 760 look for the target of 1600/2100
Editors' picks
NSE:AFFLELong
by TradingSutra
7
Power of 25, 75, and 125-Minute Timeframes in the Indian MarketSelecting the right time frame for technical analysis is a crucial decision for any technical analyst. In the Indian market, the trading session lasts for 375 minutes, starting from 9:15 AM and ending at 3:30 PM. While many traders commonly use the 30-minute, 1-hour, and 2-hour time frames, these intervals often result in incomplete candles, which can distort the accuracy of the analysis. Instead, opting for the 25-minute, 75-minute, and 125-minute time frames can provide more complete data, leading to more informed trading decisions. Drawbacks of traditional time frames: When using a 30-minute time frame, there are 13 candles formed, with the last candle representing only 15 minutes of trading. This disrupts the technical analysis process. By switching to a 25-minute time frame, traders can overcome this issue and work with 15 complete candles per trading day. Traditional 1-hour time frames produce 7 candles, including a final 15-minute candle, which interrupts the smooth flow of technical analysis. By adopting a 75-minute time frame, traders can obtain 5 complete candles, offering a more comprehensive perspective on price movements. Instead of confining analysis to a 2-hour time frame, which results in an incomplete final candle, traders can harness the power of a 125-minute time frame. With 3 complete candles per trading session, each representing a 125-minute interval, a more comprehensive understanding of price dynamics can be achieved. Benefits: Enhanced accuracy in analysing price action, as each candle represents a complete interval of 25, 75, or 125 minutes. Reduced gaps in price action, as each candle becomes a complete unit of time. Clearer depiction of trends with fewer distractions from incomplete candles. Improved visibility of trends, as each candle provides a more representative snapshot of the price action. A more holistic view of the market, aiding in the identification of key support and resistance levels. If you utilize concepts like RBR, RBD, DBR, and DBD, it is recommended to use these time frames, as the presence of an incomplete candle can inadvertently impact your analysis. You may mistakenly consider the last incomplete candle as a base or leg candle, which can affect your overall analysis. Conclusion: In the Indian stock market, precision and accuracy are vital for successful trading. By embracing unconventional time frames like 25 minutes, 75 minutes, and 125 minutes, traders can enhance their technical analysis capabilities and gain a competitive edge. Although these specific time frames are available through TradingView's paid plans, traders without access can still utilize traditional time frames. However, it is essential to recognize the limitations and potential disruptions caused by incomplete candles. Embracing the power of these alternative time frames unlocks a clearer and more comprehensive view of the market, empowering traders to make confident trading decisions. This article is written by Afnan Tajuddin with the aim of encouraging Indian traders to adopt powerful timeframes commonly used by professional traders, to enhance their technical analysis skills. If you found this article helpful, please consider following me for more analysis and educational articles. Your likes and comments are appreciated, as they motivate me to provide more analysis for you. If you have any questions, feel free to ask in the comment box below. Thank you for reading this educational article.
Editors' picks
NSE:NIFTYEducation
by AfnanTAjuddin
39
Determining trend and consolidation through wave cycles.MCX:GOLD1! In past, we have discussed how to know the quality of a trend and how to know a chart pattern's extrinsic nature according to the market phase. If you haven't read that then I want you to read that before to have a better understanding of this idea. Let's get started!! How to determine the trend or consolidation through the wave cycles and degrees. The trend moves in 3 different wave degrees:- For example , think of it like a multi-timeframe analysis. 1. Higher wave cycle (HWC) - This is a 1-month time frame trend. 2. Medium wave cycle (MWC) - This is a 1-day time frame trend. 3. Lower wave cycle (LWC) - This is 30 min time frame trend. So Without knowing which wave cycle is being traded one can encounter these problems:- 1. Inability to select consistent breakout levels. 2. Inability to select effective stop loss levels. 3. Inability to apply effective stop sizing. 4. Inability to distinguish between trend and consolidation mode. 5. Inability to determine the direction of the predominant trend. How can we eliminate these complications? 1. Consolidation and Trend Action in Terms of Wave Cycles and Degrees. A market may be both in trend and consolidation modes at the same time, depending on the wave cycle being observed. 2. We may also define breakouts via the degree of the wave cycles. Different degrees of waves help in determining whether a breakout will gonna be valid or not as a range formation near the higher wave cycle resistance zone will likely fail. In the above figure:- we have breakouts based on waves of lower, medium, and higher degrees. In other words, the breakout level will depend on the wave degree being traded. Being aware of the wave degree being traded will allow the trader to size the stop-loss effectively, according to the average wave amplitude and volatility associated with that particular wave degree. 3. Significance of higher wave degree reversals When big market trends change direction, it affects smaller trends as well. This is because all the smaller trends are part of the bigger trend. So, when the big trend changes, the smaller trends also change in the same direction. This is important to understand because it means that when you see a change in a big trend, it's a sign that many smaller trends are also changing. However, smaller trends changing doesn't necessarily mean the big trend will change too. Conclusion:- Always know which wave cycle you are trading and at what point you stand in that wave cycle. Note: In upcoming Ideas, we will cover how Waves are used in the Elliott Wave concept. I hope this short idea on trend or consolidation determination has added some knowledge and helped in improving your trading. please like and comment with your views on this idea. Keep learning, Happy trading. Thank you for reading.
Editors' picks
MCX:GOLD1!Education
by SANJAYPATIDAR_
6
Nifty Analysis: May2023Let’s quickly start this analysis from June 22 lows. Weekly Chart There is a clear A-B-C type corrective pattern which tested into previous highs of Oct 2021. I was expecting some support build up near 18000 levels (for the trend to resume on the upside) in Dec 2022 but that did not happen, and the market just drifted lower and lower to previous support area around B. Currently it is again bouncing hard towards the prior swing high A. From this structure it seems market is in a mood to trap more buyers on the upside before losing strength for new lows below B (continuing a potential H&S). But is that really true? Let’s get down to the daily time frame (left chart) and find out. Daily Chart We can see a corrective LH-LL structure which is still intact as per my understanding. I won’t consider Feb 2023 lows as a lower low (because of poor thrust below Jan 2023 lows). This is why the Feb swing high (18135 or so) would remain a LH in the trend channel. Also visible in the chart is a sharp rally from Mar 2023 lows, an Inverted Head & Shoulder pattern and a break of its neckline above 17800 zone, good omen for the buyers. But remember that lower high is still intact. Looking at the price behavior of this rally, it is totally agreeable that there is a potential for shift in structure (for uptrend) with a close above 18135 this week. Now the question is that whether the higher timeframe weakness with an ABC corrective and a potential Head & Shoulder pattern would prevail over the strength on the lower timeframe chart? The answer is that its difficult to predict with 100% accuracy. But one thing that can be done confidently is to manage your trades properly. For short-term trading I would say that booking some profit (if bought near the lows) is definitely an option. Reaction from previous resistance areas is a time-tested behavior, so one can always trail and lock profits in case of doubt. For this trend to continue on the upside, any test of 17800 has to hold. A failure of this level may put this trend in jeopardy. Similar lines can be seen in Oct2021 to June2022 correction. So the conclusion is to book a little if you want and lock the rest with trail below 17800. Any new buying at this point would remain a question mark. Thanks for reading. Do hit the boost button for more ideas in future. Disclaimer: All the views above are personal only and not an investment or trading advice. So you will have to apply your due diligence.
Editors' picks
NSE:NIFTY
by Bravetotrade
20
#banknifty view for the coming week:-#banknifty view for the coming week:- Support Area:- 41,791 - 42,537 Immediate Resistance Area:- 42,856 - 43,025 If we assume wave 3 of the current upmove is over and we are currently in wave 4 on the move, then things are not clear we are in 12345 or ABC movement within wave 4. The structure will only weaken below 41,791 and bears will be active below that level. Better to avoid long until 42,025 holds or around 42K area based on reversal signals. The view is based on the current market scenario, and if the structure changes, it will update accordingly. Regards, SG
Editors' picks
NSE:BANKNIFTY
by subhagghosh
7
NIFTY possible Elliot wave countsHere we had shared possible Elliott wave counts on hourly time frame of Nifty chart. Whereas if we are unfolding part of correction phase then currently we are in A-B-C of ((2)) or ((B)) heading towards north directions, which we can see or say in bullish way, where we can fail this rally near 18567 levels which is nothing but equality level of A and C inside wave ((2)) or ((B)), we can resume correction downwards again post this rally, which can be a subdivision part of wave ((3)) or ((C)) towards south directions. Well, sometimes C may be truncated too. What if scenario We are in Bull market at current stage or we can say what if we are in impulse right now ? Then also we have to unfold current rally not as a A-B-C but as a 1-2-3-4-5, so up to C or 3 levels should not violated because road map is same for both scenarios. Buy on dips with strict stop loss is only mantra, always try to trade at lowest risk with good enough reward probabilities. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
Editors' picks
NSE:NIFTYLong
by RK_Chaarts
31
Price/Earnings: amazing interpretation #2In my previous post , we started to analyze the most popular financial ratio in the world – Price / Earnings or P/E (particularly one of the options for interpreting it). I said that P/E can be defined as the amount of money that must be paid once in order to receive 1 monetary unit of diluted net income per year. For American companies, it will be in US dollars, for Indian companies it will be in rupees, etc. In this post, I would like to analyze another interpretation of this financial ratio, which will allow you to look at P/E differently. To do this, let's look at the formula for calculating P/E again: P/E = Capitalization / Diluted earnings Now let's add some refinements to the formula: P/E = Current capitalization / Diluted earnings for the last year (*) (*) In my case, by year I mean the last 12 months. Next, let's see what the Current capitalization and Diluted earnings for the last year are expressed in, for example, in an American company: - Current capitalization is in $; - Diluted earnings for the last year are in $/year. As a result, we can write the following formula: P/E = Current capitalization / Diluted earnings for the last year = $ / $ / year = N years (*) (*) According to the basic rules of math, $ will be reduced by $, and we will be left with only the number of years. It's very unusual, isn't it? It turns out that P/E can also be the number of years! Yes, indeed, we can say that P/E is the number of years that a shareholder (investor) will need to wait in order to recoup their investments at the current price from the earnings flow, provided that the level of profit does not change . Of course, the condition of an unchangeable level of profit is very unrealistic. It is rare to find a company that shows the same profit from year to year. Nevertheless, we have nothing more real than the current capitalization of the company and its latest profit. Everything else is just predictions and probable estimates. It is also important to understand that during the purchase of shares, the investor fixates one of the P/E components - the price (P). Therefore, they only need to keep an eye on the earnings (E) and calculate their own P/E without paying attention to the current capitalization. If the level of earnings increases since the purchase of shares, the investor's personal P/E will decrease, and, consequently, the number of years to wait for recoupment. Another thing is when the earnings level, on the contrary, decreases – then an investor will face an increase in their P/E level and, consequently, an increase in the payback period of their own investments. In this case, of course, you have to think about the prospects of such an investment. You can also argue that not all 100% of earnings are spent paying dividends, and therefore you can’t use the level of earnings to calculate the payback period of an investment. Yes, indeed: it is rare for a company to give all of its earnings to dividends. However, the lack of a proper dividend level is not a reason to change anything in the formula or this interpretation at all, because retained earnings are the main fundamental driver of a company's capitalization growth. And whatever the investor misses out on in terms of dividends, they can get it in the form of an increase in the value of the shares they bought. Now, let's discuss how to interpret the obtained P/E value. Intuitively, the lower it is, the better. For example, if an investor bought shares at P/E = 100, it means that they will have to wait 100 years for their investment to pay off. That seems like a risky investment, doesn't it? Of course, one can hope for future earnings growth and, consequently, for a decrease in their personal P/E value. But what if it doesn’t happen? Let me give you an example. For instance, you have bought a country house, and so now you have to get to work via country roads. You have an inexpensive off-road vehicle to do this task. It does its job well and takes you to work via a road that has nothing but potholes. Thus, you get the necessary positive effect this inexpensive thing provides. However, later you learn that they will build a high-speed highway in place of the rural road. And that is exactly what you have dreamed of! After hearing the news, you buy a Ferrari. Now, you will be able to get to work in 5 minutes instead of 30 minutes (and in such a nice car!) However, you have to leave your new sports car in the yard to wait until the road is built. A month later, the news came out that, due to the structure of the road, the highway would be built in a completely different location. A year later your off-road vehicle breaks down. Oh well, now you have to get into your Ferrari and swerve around the potholes. It is not hard to guess what is going to happen to your expensive car after a while. This way, your high expectations for the future road project turned out to be a disaster for your investment in the expensive car. It works the same way with stock investments. If you only consider the company's future earnings forecast, you run the risk of being left alone with just the forecast instead of the earnings. Thus, P/E can serve as a measure of your risk. The higher the P/E value at the time you buy a stock, the more risk you take. But what is the acceptable level of P/E ? Oddly enough, I think the answer to this question depends on your age. When you are just beginning your journey, life gives you an absolutely priceless resource, known as time. You can try, take risks, make mistakes, and then try again. That's what children do as they explore the world around them. Or when young people try out different jobs to find exactly what they like. You can use your time in the stock market in the same manner - by looking at companies with a P/E that suits your age. The younger you are, the higher P/E level you can afford when selecting companies. Conversely, in my opinion, the older you are, the lower P/E level you can afford. To put it simply, you just don’t have as much time to wait for a return on your investment. So, my point is, the stock market perception of a 20-year-old investor should differ from the perception of a 50-year-old investor. If the former can afford to invest with a high payback period, it may be too risky for the latter. Now let's try to translate this reasoning into a specific algorithm. First, let's see how many companies we are able to find in different P/E ranges. As an example, let's take the companies that are traded on the NYSE (April 2023). As you can see from the table, the larger the P/E range, the more companies we can consider. The investor's task comes down to figuring out what P/E range is relevant to them in their current age. To do this, we need data on life expectancy in different countries. As an example, let's take the World Bank Group's 2020 data for several countries: Japan, India, China, Russia, Germany, Spain, the United States, and Brazil. To understand which range of P/E values to choose, you need to subtract your current age from your life expectancy: Life Expectancy - Your Current Age I recommend focusing on the country where you expect to live most of your life. Thus, for a 25-year-old male from the United States, the difference would be: 74,50 - 25 = 49,50 Which corresponds with a P/E range of 0 to 50. For a 60-year-old woman from Japan, the difference would be: 87,74 - 60 = 27,74 Which corresponds with a P/E range of 0 to 30. For a 70-year-old man from Russia, the difference would be: 66,49 - 70 = -3,51 In the case of a negative difference, the P/E range of 0 to 10 should be used. It doesn’t matter which country's stocks you invest in if you expect to live most of your life in Japan, Russia, or the United States. P/E indicates time, and time flows the same for any company and for you. So, this algorithm will allow you to easily calculate your acceptable range of P/E values. However, I want to caution you against making investment decisions based on this ratio alone. A low P/E value does not guarantee that you are free of risks . For example, sometimes the P/E level can drop significantly due to a decline in P (capitalization) because of extraordinary events, whose impact can only be seen in a future income statement (where we would learn the actual value of E - earnings). Nevertheless, the P/E value is a good indicator of the payback period of your investment, which answers the question: when should you consider buying a company's stock ? When the P/E value is in an acceptable range of values for you. But the P/E level doesn’t tell you what company to consider and what price to take. I will tell you about this in the next posts. See you soon!
Editors' picks
NSE:HDFCBANKEducation
by Be_Capy
8
What are Bollinger Bands and How to Use themBollinger Bands are a widely used technical analysis tool traders rely on to gauge market volatility and identify potential entry and exit points. Developed by John Bollinger in the 1980s, they provide a simple yet effective method to analyze price trends and determine potential movements. In this post, we'll cover the fundamental concepts of Bollinger Bands, including how they work and how you can use them to your advantage . This post will also lay the groundwork for future posts about more advanced topics on Bollinger Bands. Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! What are Bollinger Bands? Bollinger Bands are composed of three lines that are plotted on a price chart. The first line is a simple moving average (also known as the basis line), and the other two lines are standard deviation lines, one located above the SMA and the other below it. When plotted, the SMA appears at the centre of the chart, flanked by the upper and lower bands. The width of the bands is determined by market volatility; the bands will expand as volatility increases and contract as volatility decreases Components of Bollinger Bands Basis line: The basis line is the middle line in the Bollinger Bands and represents the simple moving average (SMA) of the closing prices of an asset over a defined period. Upper Band: The upper band is calculated by adding a specified number of standard deviations to the SMA. Typically, traders use two standard deviations from the SMA, making it the most common setting used. However, these settings are not universal and vary as per the trading style. Lower Band: The lower band is calculated by subtracting the same number of standard deviations from the SMA. This results in a channel of three lines, with the upper and lower bands fluctuating around the SMA, reflecting volatility. Usage: 👉 Overbought and Oversold Conditions Bollinger Bands can help in the identification of overbought and oversold conditions. Generally, when the price of an asset touches or exceeds the upper band, it may suggest that the asset is overbought, and a pullback or reversal could be on the horizon. In contrast, when the price touches or falls below the lower band, it may indicate that the asset is oversold and could be due for a bounce or reversal. However, it's worth noting that in strong trends, the price may remain at the upper or lower band for an extended period. This occurrence is not a signal for a pullback or reversal, and traders should consider other factors to confirm the actual trend. Exhibit: Strong Uptrend Exhibit: Strong Downtrend 👉 Volatility Indicator Bollinger Bands serve as a measure of volatility. As the bands widen, it indicates that the volatility is increasing, which means that price swings are likely to be more significant. Conversely, when the bands become narrower, it suggests that the volatility is decreasing, which could result in smaller price fluctuations. 👉 Bollinger Band Squeeze A squeeze occurs when the bands contract and move closer together, indicating decreased market volatility. This phenomenon is often a precursor to a significant price movement or breakout, as periods of low volatility often precede periods of high volatility in the market. 👉 Trend Confirmation Bollinger Bands can also be used to confirm the direction of a trend. During an uptrend, prices often stay within the upper half of the Bollinger Bands, while in a downtrend, prices tend to remain in the lower half of the bands. In addition, when prices repeatedly bounce off the basis line or keep getting rejected from it, it could indicate the continuation of a trend. Exhibit: Trend continuation in a Bullish trend Exhibit: Trend continuation in a Bearish trend Thanks for reading! Hope this was helpful. As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. See you all next week. 🙂 – Team TradingView Be sure to follow us on Twitter , Instagram , and Telegram for more valuable content! 💘
Editors' picks
NSE:NIFTYEducation
by TradingView
26
"METRO BRANDS: Get in on the Action Now!METRO BRANDS has recently completed wave 4 with a triangle formation, indicating a potential move towards wave 5. Traders may consider entering a position in the range of 815-830, with target levels at 976 and 1107. It is important to note that trading carries a risk of loss, and a stop loss at 765 is recommended to limit potential losses if the trade moves against expectations. As always, it is important to conduct thorough research and analysis before making any trades. This post is not financial advice and should not be considered as such.
Editors' picks
NSE:METROBRANDLong
by karuneshBajpai2
23
DELHIVERY : OPPORTUNITY TO ENTER INTO 3rd WAVE OF TREND REVERSALDelhivery Ltd , India's Popular Supply Chain and logistic company , with a Market Capitalization of More than 24,000 Cr seems to be ready for a reversal trend. Since , Jan 2023 , it is making support for the second time now. Going with the Elliott Wave theory , as shown in the chart , the stock is entering into the 3rd Wave of the uptrend , which is supposed to be the longest of any wave . The stock seems to be moving in channel also as shown in the chart. As the stock has shown some improvement from its lowest ever price, and RSI is crossing 50 from below , therefore the probability of trend reversal is high. For swing traders, it is the best time to enter the trade and making the latest support as base. We can see stock moving to at least three targets as shown in figure of 355.90 , 375.20 and 390.50. The second swing that is 321.30 would be our STOP LOSS , CMP is 337.10. Hence we have a risk reward ratio of 1: 3.5 . Please remember , this research is only for educational purpose and one must do their own research too before making any trade. Trade at your own risk. Best of Luck !!!
Editors' picks
NSE:DELHIVERYLong
by chakraveer1104
9
Infosys in Trouble along with All Tech stocksInfosys is in Zig zag correction after making top near 1955. The Rally from covid low ends in 5 waves near 1955. Currently in Wave C which can head up to 1073 and worst case 700 which is 1.618 extension. Analysis invalidation level will be 1620. The LAST Time we analyzed it, moved as per chart DISCLAIMER: There is no guarantee of profits or no exceptions from losses. The stock and its levels discussed are solely the personal views of my research. You are advised to rely on your judgement while investing/Trading decisions. Seek help of your financial advisor before investing/trading. Investment Warnings: We would like to draw your attention to the following important investment warnings. -Investment is subject to market risks. -The value of shares and investments and the income derived from them can go down as well as up. -Investors may not get back the amount they invested - losing one's shirt is a real risk. -Past performance is not a guide to future performance. -I may or may not trade this analysis --------------------------(((((LIKE)))))-------------------------------
Editors' picks
NSE:INFYShort
by Niftydirection
9
NIFTY Intraday Trade Setup For 17 Apr 2023NIFTY Intraday Trade Setup For 17 Apr 2023 Buy-Above 17845 Sl-17795 T- 17930 18035 Sell-Below 17729 Sl-17780 T- 17639 17550 NIFTY has closed on a flat note last day and formed a hanging man in daily TF. If the next immediate candle closes below its low then below that red candle's low it will initiate the pullback move of the sharp up move. Also we we have been trailing our longs with TSL as PDL (CB) which is also intact now. Also we have initiated a mid term bullish momentum just after we got a morning star in weekly TF which was near 0.58 FIB ration also. We have breached previous month's high also. So after a pullback we will start the next round of up move. As 'pullback is the fuel for the impulse'. Coming to Monday's trade setup, if index opens flat and a 15 Min candle closes above 17845 then we will long for the target of 17930 and 18035. For selling we need a 15 Min candle close below 17729. T- 17639 and 17550. In case of a big gap up/down, wait till 10 o'clock and mark the high and low of the trading range. Trade on this range breakout.
Editors' picks
NSE:NIFTY
by Omahto
4
Basics of Option's Delta: With ExamplesOption's DELTA represents the change in price of an option with respect to change in price of an underlying. Let's understand briefly with the help of Nifty example. 1️⃣ In the above Nifty example, 17750 is an At the Money CE option. Delta of ATM CE is near 0.5 Which means that if spot moves 10 points, 17750 CE will move 5 points. Normally ATM options are highly volatile options. 2️⃣ 17700 is slightly In the Money CE. Delta is 0.7, means if spot moves up 10 points, the CE option will move up by 7 points. Volatility is fairly high in this one too but less compared to 17750. ⚡If you open the chart of the above options, you will see spikes with lot of wicks above and below the candles (if market stays around these levels). Also, there will be a lot of breakout/breakdown failures over the swing highs and lows in the intraday. This is due to highly volatile nature of ATM options. 3️⃣ 17650 and 17600 are deeper In the Money CE options. You can see that the delta is around 0.9 It means that if index moves 10 points, these CE option will move 8-9 points also. These options are less volatile compared to ATM options. ⚡The deeper the CE option, the higher would be the delta, but the value of Delta never exceeds 1. You should note that deep ITM options just behave like the underlying Futures. Means a 1-point movement in the underlying equals 1 point move in the option. So, if you don't want to trade futures for some reason, you can trade with deep ITM options. ⚡⚡Remember that Delta varies as the market moves. Ex if market moves down by 100 points, in this example, then Delta of 17650 CE will become 0.5 as it will be ATM at that point. This behavior along with higher Theta of ATM needs more attention. ⚡Needless to mention, the Delta of Out of the Money CE options remains less than 0.5 and it keeps on decreasing as we move deeper into OTM CE options. Ex Delta of 17900 CE is 0.05 while publishing this post on the expiry day. This is the reason that an OTM CE will have bare minimum movement with respect to movement in the underlying. Disclaimer: I don't call myself an option expert and I am not much into complex option strategies. But this is the least that one should know as an option trader. Do like for more informative posts in the future. Regards
Editors' picks
NSE:NIFTYEducation
by Bravetotrade
21