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Option Trading Master class Part -6What is Option Trading? Definition: Options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an asset at a pre-decided price within a specific timeframe. Types of Options: Call Option: Right to buy Put Option: Right to sell Option Participants: Buyers (Holders): Limited risk, unlimited reward Sellers (Writers): Limited reward, unlimited risk How Options Work (With Example) Imagine Reliance stock is trading at ₹2,500. Call Buyer: Buys a ₹2,500 Call Option by paying ₹50 premium Scenario A (Stock goes to ₹2,600): Intrinsic value = ₹100 Profit = ₹100 – ₹50 = ₹50 per share Scenario B (Stock goes to ₹2,400): Option expires worthless Loss = ₹50 (premium paid)
NSE:NIFTYEducation
by SkyTradingZone
2
Option Trading Master class Part -7Fundamentals of Stock Investing Types of Investors: Value Investors: Focus on undervalued companies Growth Investors: Target high-growth potential stocks Dividend Investors: Prefer regular income from dividends Research Parameters: Earnings per Share (EPS) Price-to-Earnings Ratio (P/E) Return on Equity (ROE) Debt-to-Equity Ratio Industry Trends Tools for Investing: Demat and Trading Account Research Platforms (e.g., TradingView, Screener.in) Portfolio Tracker (e.g., Zerodha Console)
BSE:SENSEXEducation
by SkyTradingZone
2
Option Trading Master classIntroduction to Investing and Option Trading Investing and option trading are two pillars of wealth creation and risk management in modern finance. Investing focuses on long-term growth by acquiring assets that appreciate over time, while option trading involves strategic bets on price movements within a defined period using derivative contracts. Together, they offer investors a combination of growth, income, and hedging capabilities. What is Investing? Definition: Investing is the process of allocating money into financial instruments (like stocks, bonds, ETFs, or real estate) with the expectation of generating a return over time. Key Objectives: Wealth accumulation Passive income generation Capital preservation Beating inflation Common Asset Classes: Equity (Stocks): Ownership in companies Fixed Income (Bonds): Lending capital to earn interest Real Estate: Physical properties generating rental income Mutual Funds/ETFs: Pooled investments Commodities and Gold: Inflation hedges
NSE:BANKNIFTYEducation
by SkyTradingZone
5
Master class 9. Introduction to Option Trading Options are powerful derivative instruments that give buyers the right (not obligation) to buy or sell an underlying asset at a predetermined price within a specific time. They are commonly used for hedging, speculation, and income strategies. There are two basic types: Call Options: Right to buy Put Options: Right to sell Options derive value from stocks, indices (Nifty, Bank Nifty), commodities, or currencies and are traded on platforms like NSE in India. 2. Key Terminology in Option Trading Strike Price: Price at which the option can be exercised Premium: Cost of buying the option Expiry: Last day the option is valid Lot Size: Fixed number of underlying units (e.g., 50 for Nifty) Intrinsic Value: Real value of an option if exercised now Time Value: Portion of premium linked to time left before expiry ATM/ITM/OTM: At The Money, In The Money, Out of The Money – defines moneyness of options
NSE:BANKNIFTYEducation
by SkyTradingZone
2
Institution Master class Welcome to the Institution Trading Master Class, an advanced educational module crafted for serious traders and investors who want to understand how big institutions trade, move markets, and manage risk at scale. This course blends practical market experience with strategic tools and institutional concepts. 📘 Page 1: Understanding Institutional Trading 🔹 What is Institutional Trading? Institutional trading refers to market activities performed by large entities like: Mutual Funds Pension Funds Hedge Funds Insurance Companies Foreign Institutional Investors (FIIs)
NSE:BANKNIFTYEducation
by SkyTradingZone
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.
NSE:SBINEducation
by SkyTradingZone
11
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.
BSE:SENSEXEducation
by SkyTradingZone
2
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
NSE:BANKNIFTYEducation
by SkyTradingZone
2
HDFC Bank levels for swing tradingAccording to a recent analysis, the important levels are: CMP: ₹1,980 (as per pivot analysis site) Short-term momentum appears neutral to bullish. Daily Pivot (Classic Standard) – significant for intraday/swing entries Pivot: 2002.43 Support: S1 1972.57, S2 1948.83, S3 1918.97, S4 1895.23 Resistance: R1 2026.17, R2 2056.03 CPR (Daily): BC: 1969.50 P: 1972.57 TC: 1975.63 Weekly Pivot – key for multi‑day swing setups Pivot: 1961.00 Support: S1 1925.70, S2 1872.70, S3 1837.40 Resistance: R1 2049.30, R2 2102.30 CPR (Weekly): BC: 1952.15 P: 1961.00 TC: 1969.85
NSE:HDFCBANKLong
by TechnicalExpress
Open Interest & Option Chain Analysis Topic: Open Interest & Option Chain Analysis 1: What is Open Interest (OI)? Simple Meaning: Open Interest means the total number of active option or futures contracts in the market that haven’t been closed yet. Easy Example: If you and your friend enter into a new option trade, the open interest is 1. If someone else joins with a new trade, it becomes 2. But if you close your trade, it becomes 1 again. What It Tells You: If OI is increasing, more people are joining the market. If OI is decreasing, traders are exiting their trades. Combine OI with Price Movement: Price going up + OI going up = New buying → Bullish Price going down + OI going up = New selling → Bearish Price going up + OI going down = Traders exiting shorts → Short covering Price going down + OI going down = Traders exiting longs → Profit booking 2: What is an Option Chain? Simple Meaning: Option Chain is a table that shows all the call and put options for a stock at different strike prices. What You’ll See in an Option Chain: Strike Price: The price you agree to buy/sell. Calls (CE): Right to buy. Puts (PE): Right to sell. Open Interest (OI): How many contracts are active. Volume: How many were traded today. LTP: Latest price of that option. 3: How to Read Option Chain Like a Pro 1. Spot the Support Levels: Look for the highest OI on the put (PE) side → Big money sees this as support. 2. Spot the Resistance Levels: Look for the highest OI on the call (CE) side → Traders think price won't go above this. 3. Track Market Mood: If more puts are being written (PE OI going up) → Traders are bullish. If more calls are being written (CE OI going up) → Traders are bearish. 4. PCR (Put Call Ratio): PCR > 1 → More puts than calls = Bullish PCR < 1 → More calls than puts = Bearish
NSE:BANKNIFTYEducation
by SkyTradingZone
Advance Institutions Option Trading - Lecture 5When it comes to low risk options strategies, selling a call spread and selling a put spread are techniques that traders often utilize. These strategies are characterized by a high probability of profit due to the low probability of loss, and they limit risk in case the trade doesn't go as planned. While day traders look at minute-to-minute price changes, swing traders look at trends that play out over several days. This is considered one of the most profitable trading types that allows more flexibility, as you don't need to be glued to your computer screen all day.
NSE:SBIN
by SkyTradingZone
Advance Institutions Option Trading - Lecture 4If you're looking for a simple options trading definition, it goes something like this: Options trading gives you the right or obligation to buy or sell a specific security on or by a specific date at a specific price. An option is a contract that's linked to an underlying asset, such as a stock or another security. Options trading also involves two parties: the holder (buyer) and the writer (sometimes called the seller). Holders are investors who purchase contracts, while writers create them. The holder pays the writer a premium for the right to sell or buy a stock by a certain date.
NSE:NIFTYEducation
by SkyTradingZone
HDFCBANK | Symmetrical Triangle | Daily |Watchlist### **Technical Analysis of HDFC Bank Ltd. (NSE)** The **daily candlestick chart** of **HDFC Bank Ltd.** highlights key technical patterns, suggesting potential bullish momentum. ### **Key Observations:** 1. **Cup and Handle Formation:** - A well-defined **cup and handle** pattern is visible, indicating prolonged accumulation. - Breakout above **1,960.00 INR** confirms bullish sentiment. - **Projected Target:** **2,057.30 INR**, a **11.62% upside** from breakout. 2. **Symmetrical Triangle Breakout:** - Price action consolidating within a **symmetrical triangle**, leading to breakout confirmation. - Strong move above **1,944.90 INR**, validating upward momentum. 3. **Volume & Price Action:** - **Volume:** **14.37M** surpassing 20-day moving average of **10.13M**, confirming strength. ### **Support & Resistance Levels:** - **Support:** **1,842.00 INR**, acting as a key cushion in case of pullbacks. - **Resistance:** **2,057.30 INR**, aligning with the measured move projection.
NSE:HDFCBANKLong
by DailyCharts03
HDFC BANK : 45-50% upside possible in 1.5 Years. BODHi friends, Targets are mentioned in the self explanatory chart . HDFC Bank is the largest private sector bank having all time high profitability & sells . It has well controlled gross and net NPA compared to its peers . There is a very good probability for the stock to reward its investors with ~50% return . Its a BOD (BUY ON DIPS) as per my analysis . Please feel free to comment or share your views on my analysis . Note : I am not SEBI registered advisor . Please consider my analysis for education purpose only .
NSE:HDFCBANKLong
by yadkr11
Smart money buying in YES BANK.YES Bank Breakout Alert YES Bank has recently shown a strong breakout supported by high trading volume, following news that Japan's Sumitomo Mitsui Banking Corporation has received RBI approval to acquire a 51% stake in the bank. From a technical standpoint, the chart structure indicates a bullish trend on higher time frames. If this breakout holds as genuine, the stock has the potential to test ₹22.50 and ₹28 levels in the near term — representing an upside of approximately 40% from current levels.
NSE:YESBANKLong
by tradetechnicalanalyst
3
Range-Bound Between Key Supply & Demand Zones🏦 HDFC Bank Ltd – Range-Bound Between Key Supply & Demand Zones 📊 Timeframe: 15-Minute | Exchange: NSE | Date: May 6, 2025 CMP: 1,929.00 🔴 Retested Supply Zone: 1949.60 - 1958.40 This zone previously acted as resistance after a sharp fall. Price revisited the zone but was rejected, indicating potential selling pressure. A breakout above this level could trigger bullish continuation. 🟢 Possible Demand Zone: 1898 - 1891.80 Price rebounded from this zone earlier, showing possible accumulation by buyers. Not confirmed yet with multiple tests, but worth watching for potential support. Breakdown below this may open the door to further downside. 📌 Current Price Action HDFC Bank is currently consolidating between these two zones. No clear trend yet; price is oscillating sideways. Volume is decreasing, indicating lack of momentum in either direction. 📈 Levels to Watch Breakout Zone: 1,959+ Breakdown Zone: 1,890- 🔍 Observational Bias Bearish Bias: If price revisits 1949.60 - 1958.40 zone and shows rejection, potential short setups may emerge. Bullish Bias: If price retests 1898 - 1891.80 with bullish confirmation, long trades may be considered.
NSE:HDFCBANK
by simpletradewithpatience
3
SBI form Inverse H&S.SBI form Inverse H&S pattern. Today gives break out of neckline 780. SBI is at demand zone add more if come down to 780. Close below 760 would be the violation of this pattern. As per chart it may test 785-807 soon. As per OI data on dated 17.04.2025 there is considerable OI shading on CE side and OI build up on PE side. Stock is in good momentum as upper Bolinger Band tested and expanded. As per indicator all are bullish only Moving average need to improve. There are good chance for retest the neckline.
NSE:SBINLong
by tradetechnicalanalyst
1
Falling Wedge Breakout with Bullish Structure | 15-Min Chart🏦 HDFC BANK LTD – Falling Wedge Breakout with Bullish Structure | 15-Min Chart 📅 Date: April 25, 2025 📈 Timeframe: 15-Minute 🔍 Stock: HDFC Bank Ltd (NSE) 📌 Technical Overview: HDFC Bank is showing signs of a potential bullish reversal on the 15-minute chart, forming a falling wedge pattern, which is typically known for reversal setups. Price action suggests a breakout from the wedge structure, with strong volume support. 🧩 Chart Pattern: A clear Falling Wedge is identified using two converging trendlines (red). Within the wedge, price completed a potential AB=CD harmonic structure, bottoming out near ₹1,891. The breakout candle has closed above the upper trendline, signaling early strength. 🔍 Key Price Levels: Support Zone: ₹1,891.80 (marked in red) Immediate Resistance: ₹1,933.00 (green horizontal line) CMP: ₹1,917.70 A sustained move above ₹1,933 may open room for further upside, potentially towards the ₹1,960–₹1,980 range as per the chart projection. 📊 Volume Analysis: Noticeable pickup in green volume bars on the breakout candle. This confirms growing interest and participation from the bulls. 🧠 Observational Bias: As long as the price holds above ₹1,891 and sustains the breakout, the short-term trend appears to be tilting in favor of buyers. A retracement or retest of the wedge breakout zone may offer additional confirmation.
NSE:HDFCBANKLong
by simpletradewithpatience
3