HDFCBANK
CHOOSING OPTIONS STRIKEChoosing wrong strike prices can lead to big losses even when our analysis is right. It's due to Theta decay.
So Lets understand some basics of options strike price.
There are three types of strike prices based on their moneyness.
1)ATM (At the Money)
2)OTM (Out of the Money)
3)ITM (In the Money)
FOR CALL OPTIONS :
Lets assume Stock ABC is trading at 150 (spot price). Then,
Spot price = 150
ATM Strike = 150
Any strike above spot price is OTM for call option.
Ex : 160 ,170,180 etc.,
Any strike below spot price is ITM for call option.
Ex : 140, 130, 120 etc.,
FOR PUT OPTIONS :
Stock ABC is trading at 150 (spot price).
Spot price = 150
ATM Strike = 150
Any strike above spot price is ITM for put option.
Ex : 160 ,170,180 etc.,
Any strike below spot price is OTM for put option.
Ex : 140, 130, 120 etc.,
HOW TO CHOOSE THE STRIKE AMONG THE ABOVE THREE MONEYNESS
1)Follow a simple rule, Buy a strike price which is closer to the spot price. "OTM STRIKES ARE BIG NO" .
2) Remember! when we are buying an option, the stock / index needs to move up / down with a good momentum. So that our option will gain some value & we will be in profit.
So it doesn't make sense to buy a OTM call / put. Because if a strike price is far away from spot price, it won't give us much movement due to time decay.
I have even shared my option strike rules as follow.
Friday, Monday & Tuesday = ATM strikes
Wednesday & Thursday = ITM strikes
This is how I used to pick strikes for intraday. The reason is simple because, if we are closer to the expiry (Thursday) the effect of theta decay is very high. Due to which our premiums will not move much even if the stock / index has moved pretty well. By following these rules, our chances of losing money will drop drastically.
Happy Learning & Earning :)
- DivyaaPugal
Nifty marking analysis only for learningNifty important marks you can use it . Please check the accuracy of the marking .
Red one are mark in 1 hour time frame and BLUE one are 15 minute timeframe marking .
How line work?
The red and blue line are working as an support and resistance. Please trade with stoploss .
If you want more please name the stock name in comment box.
Thanks
2 Amazing price action trades and Index ideas for 17 Oct marketsI daily make educational content videos on financial markets
HDFC bank analysisHDFC bank has touched down it's trendline support and closed with a bullish candle in last hour. If it breaks last hour High and sustains above then we can go long for target of 1550. If it breaks down below today's low and retests and sustain then we can expect a fall to 1432 level
HDFCBANK - Ichimoku Bullish Breakout Stock Name - Hdfc Bank Limited
Ichimoku Cloud Setup :
1). Today's close is above the Conversion Line
2). Future Kumo is Turning Bullish
3). Chikou span is slanting upwards
All these parameters are showing bullishness at Current Market Price
and more bullishness AFTER crossing 1539
#This is not Buy and Sell recommendation to any one. This is for education purpose and a helping hand to learn trading in Market.
# Cloud Trading
# Ichimoku Cloud
# Ichimoku Followers
I hope you all like my analysis.
Please do share your thoughts into comment section.
Please give a like, it motivates me to do analysis.
HDFC quick profit HDFC has finally broken out of the resistance zone after forming a beautiful golden cross as well as a flag and pole break pattern. Support has been provided by trendline
A limit order above the resistance zone and a target of 1589 is a high probability trade.
Tight Stop loss below recent candle low.
Keep It Simple
HDFC Bank Intraday Setup for 13th SeptHi Guys,
HDFC Bank made triangle pattern.
Either side breakout can give you good return.
Support and resistance marked by trend line.
You can take intraday position as per your analysis.
Note - Please do proper analysis and maintain strict SL before taking any trade.
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Thanks!!
HDFC GOOD TO SHORT NSE:HDFC
Good to keep on the radar as it will help to decide market direction
Always respect SL & position sizing
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Trade Secrets By Pratik
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Disclaimer -
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This is our personal view and this analysis is only for educational purposes.
Please consult your advisor before investing or trading.
You are solely responsible for any decisions you take on basis of our research.