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Option

Data TradingMarket data is a broad category of information about the financial markets, consisting of essential details like price, bid/ask quotes, trading volume, trading period (high, low, open, or closed), etc. Options trading is a type of financial trading that allows investors to buy or sell the right to purchase or sell an underlying asset at a fixed price, at a future date. Options trading operates on the basis that the buyer has the option to exercise the contract but is not under any obligation to do so.
NSE:BANKNIFTYEducation
by Optionclub
PCR / Put Call RatioA PCR greater than 1 indicates that more put options are being traded than call options, suggesting a bearish market sentiment. Investors may expect a market decline or hedge against potential losses. PCR ratio = 1500/2000. = 0.75. Points to be noted: A PCR value below 1 is indicative of the fact that more Call options are being purchased relative to the Put options which signals that investors are anticipating a bullish outlook for the markets ahead. Contrarian indicator: Can signal potential market reversals with extreme values of the put/call ratio. An example of this is a put/call ratio of 2.5. This can suggest a very bearish sentiment while a put/call ratio such as 0.25, could indicate an extreme bullish sentiment.
NSE:BANKNIFTYEducation
by Optionclub
Roadmap for a TraderA trading roadmap is essentially a strategic plan that guides your trading decisions. It encompasses your goals, risk management strategies, analysis methods, and decision-making processes. Think of it as a personalized guide that helps you make informed choices in the dynamic world of trading. By recognising specific patterns like the Cup and Handle or Double Bottom, traders can identify moments when the market is likely to make a significant move. These patterns signal potential price swings, providing traders with a roadmap for entering positions at the optimal time.
NSE:NIFTYEducation
by SkyTradingZone
3
Learn option in trading If you buy an options contract, it grants you the right but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. A call option gives the holder the right to buy a stock, and a put option gives the holder the right to sell a stock. Now, the burning question on everyone's mind – how long does it take to learn options trading? Well, it really depends on how much time and effort you're willing to put in. Some people might be able to pick it up in a few weeks, while others might take months or even years to fully grasp the concepts.
NSE:NIFTYEducation
by SkyTradingZone
2
Option Chain in trading An option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix. What is Implied Volatility (IV)? Implied Volatility (IV) uses an option price to determine and calculate what the current market is talking about, the future volatility of the option's underlying stock. Implied volatility is one of the six essential factors used in options pricing models.
NSE:BANKNIFTY1!Education
by SkyTradingZone
Option and Database trading To study an option chain, focus on the current market price, displayed in the centre. Analyse the built-up data to understand market direction based on recent changes in open interest and price. ITM call options are typically highlighted in yellow, making it easier to distinguish them from other options. The put-call ratio measures trading volume using put options versus call options. Instead of the absolute value of the put-call ratio, the changes in its value indicate a change in overall market sentiment.
NSE:BANKNIFTYEducation
by SkyTradingZone
PCR Trading Option A Advance Guide However, no PCR can be considered ideal, but usually, a PCR below 0.7 is typically viewed as a strong bullish sentiment while a PCR more than 1 is usually considered as a strong bearish sentiment. One way to calculate PCR is by dividing the number of open interest in a Put contract by the number of open interest in Call option at the same strike price and expiry date on any given day. It can also be calculated by dividing put trading volume by call trading volume on a given day.
NSE:BANKNIFTY1!Education
by SkyTradingZone
3
Option And Data Base Trading OptionMetrics provides the highest quality and most comprehensive historical options data on the market today. Leading investment and academic institutions worldwide rely on the accuracy of our options data to measure volatility, assess risk, and analyze investment strategies. By analysing the information provided in the option chain, traders can identify potential trading opportunities and make informed decisions about buying or selling options contracts. Option chains are used by traders to analyse and evaluate the market's expectations of an asset's future price movements.
NSE:NIFTYEducation
by SkyTradingZone
3
Technical Analysis Part - 3Volume can confirm divergence signals by indicating the strength and conviction behind price movements. High volume during divergence signals strengthens the reliability of the signal, while low volume may indicate weaker market sentiment. The basic rule of thumb is that an RSI value over 70 indicates a stock is “overbought” and may see its price fall in the future. Meanwhile, an RSI value of 30 or lower can mean that the price could go up. An RSI of 50 is often seen as neutral, meaning the stock has not been either overbought or oversold.
NSE:BANKNIFTYEducation
by SkyTradingZone
Option chainAn option chain is a comprehensive list that shows you all available option contracts for a given stock. These are sorted by their expiration date, which is the last day you can trade or use the option, and strike price, which is the price at which you can buy (call) or sell (put) the stock. An option chain is a valuable tool for traders who want to make informed decisions about their investments. It provides information on the strike price, expiration date, and the price of each option.
NSE:BANKNIFTYEducation
by SkyTradingZone
Trading Medicine Part 21. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The upside on this trade is uncapped and traders can earn many times their initial investment if the stock soars. Options contracts are considered risky due to their complex nature, but investors who know how options work can reduce their risk. Various risk levels expose investors to loss of premiums, gains, and market value loss.
NSE:BANKNIFTYEducation
by SkyTradingZone
why risk management is important in tradingWithout appropriate risk management, events like this can lead to: Loss of all your trading capital or more. Losses that are too large given your overall financial position. ​Having to close positions in your account at the wrong time because you don't have enough liquid funds available to cover margin. Key Takeaways: #Trading can be exciting and even profitable if you are able to stay focused, do due diligence, and keep emotions at bay. #Still, the best traders need to incorporate risk management practices to prevent losses from getting out of control. #Having a strategic and objective approach to cutting losses through stop orders, profit taking, and protective puts is a smart way to stay in the game.
NSE:BANKNIFTYEducation
by SkyTradingZone
1
PCR Option Trading Investors use several financial measures to gauge the market temperament before parking their money into the same. Put call ratio is one such financial tool which proves useful for investors in more than one way. To understand the application and role of this financial measurement one needs to be well-versed in its basics. Here, we have elucidated the nitty-gritty of the same, including the put call ratio formula and other facts. Put Call Ratio Meaning Typically, a put-call ratio is a derivative indicator. It is designed to enable traders to determine the sentiment of the options market effectively. This ratio is computed either by factoring in the open interest for a given period or based on the volume of options trading. Also known as PCR, this particular ratio serves as a contrarian indicator and is mostly concerned with options build-up. Such an indicator helps determine the extent of bullish or bearish influence in the market. In other words, it helps traders to understand whether a recent increase or decrease in the market is excessive or not. Based on this information, traders decide if they should opt for a contrarian call in the prevailing market. Such an investment strategy is based on the practice of purchasing or selling investment units against the prevailing market conditions, to combat mispricing in the securities market. How is Put Call Ratio Calculated? Before learning about the put call ratio formula, it is crucial to understand the components of this ratio individually. For instance, the put option provides traders with the right to purchase assets at prefixed prices, whereas, the call option offers the right to purchase assets at the current market prices. Put call ratio calculation can be done in the following ways - Based on Open Interests of a Specific Day PCR is computed by dividing open interest in a put contract on a particular day by open call interest on the very same day. PCR (OI) = Put Open Interest/ Call Open Interest Based on the Volume of Options Trading Here PCR is computed by dividing the put trading volume by the call trading volume on a specific day. PCR (Volume) = Put Trading Volume/Call Trading Volume Here, Put volume indicates the total put options initiated over a specific time-frame. Conversely, Call volume indicates the total call options initiated over a specific time-frame. Notably, the interpretation of this said ratio differs as per the type of investor.
NSE:BANKNIFTYEducation
by SkyTradingZone
Top 1% Trader SecretDetermine your risk capital, i.e., the total amount of money you're willing to risk in your trading. This should be money that you can afford to lose without it affecting your lifestyle. Calculate 1% of your risk capital. This is the maximum amount you're allowed to risk on any single trade. For day traders and swing traders, the 1% risk rule means you use as much capital as required to initiate a trade, but your stop loss placement protects you from losing more than 1% of your account if the trade goes against you.
NSE:BANKNIFTYEducation
by SkyTradingZone
2
Options: Buying vs. Selling - A Comprehensive GuideExploring the realm of options trading unveils two key players: Buyers and Sellers. Each wields unique strategies with its mix of risks and rewards. Let's break it down in simple terms. # Option Buyers: Riding on Possibilities Chances of Making Money (PoP): Buyers aim for good market moves, counting on accurate predictions within a specific time. Risk: For buyers, risks are limited. Losses only go as far as the premium paid. Time Pressure: Buyers fight against time. Being right means aligning predictions with a set timeframe. Volatility Impact: Buyers gain when things get more uncertain, making their options potentially more valuable. Market Moves Matter: Buyers thrive when the market goes up or down; they bet on a specific direction. Skill Needed: While simpler than selling, buyers need a good sense of market trends. # Option Sellers: Crafting Strategies with Care Chances of Making Money (PoP): Sellers prefer stable or slightly tricky markets, benefitting from time passing by. Risk Check: Sellers face unlimited risks if the market moves too much against them. Time on Their Side: Sellers like time passing; it works in their favor. Volatility Impact: Less drama is better for sellers; it makes their options lose less value. Direction Doesn’t Matter Much: Sellers can make money in quieter markets; they have more room to move. Skill Level: Selling needs more skill, involving clever strategies and calculations. # What Decides Success: A Mix of Factors Winning in the options game is about reading the market, knowing your risk appetite, and being smart with strategies. - Chances of Making Money: Buyers look for clear market trends, while sellers like it stable. - Risk Game: Buyers have limits on losses; sellers need to watch out for big market moves. - Time’s Effect: Buyers fight against time; sellers make time work for them. - Cost and Volatility: Buyers pay more, and gain from more drama. Sellers earn from premiums and like calm markets. Succeeding in options trading is about thinking smart, adapting to what the market gives, and keeping your skills sharp. Grateful for Your Support! 🌟 To our amazing 150+ followers, your enthusiasm fuels our journey! 🚀 Thank you for being part of our community, and decoding financial mysteries together. Here's to more insights and learning ahead.
BSE:SENSEXEducation
by iamrk7
How To Trade in Option's Market By 👑Royal Trade👑 👑Royal Trade👑 Hello Guys in This Video We share How to Trade in Option's Market. Difference between technical analysis and option trading Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. why we learn option chain? Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term. What is the purpose of option chain? It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract. How important is option chain analysis? The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:BANKNIFTYEducation
by Optionclub
2
How To Trade In Option's By Big Bulls🤑💸✔✔💲🙏#HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA Intraday trading involves buying and selling options within the same trading day, rather than holding them for an extended period. By adopting this approach, traders can make profits by capitalizing on the short-term price movements of the underlying asset.22-Apr-2023 Is option buying good for intraday? Trading intraday options can be a great way to benefit from short-term market fluctuations and make quick money. Before you dive headfirst into the fast-paced world of intraday options, it's important to have a sound strategy with an understanding of risks and rewards. The long black candlestick is 'the mother' and the small candlestick is 'the baby'. The smaller the second candlestick, the stronger is the reversal signal. The shadows of the second candlestick do not have to be contained within the first candle's body. Which candle is best for option trading? Here are the top 5 candlestick patterns that traders must know: Doji. The Doji pattern is formed when the Open Price and Close Prices are the same or almost the same, and there is Low and High Price, so the candle has nearly nobody with a lower and upper wick. ... Hanging Man. ... Hammer. ... Morning Star and Evening Star. Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai
NSE:NIFTYEducation
by UnknownUnicorn59699627
7
Option's Trading With CandleStick Pattern's🤑💲💰💸❤#We Make Only Profit. #HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA The long black candlestick is 'the mother' and the small candlestick is 'the baby'. The smaller the second candlestick, the stronger is the reversal signal. The shadows of the second candlestick do not have to be contained within the first candle's body. Which candle is best for option trading? Here are the top 5 candlestick patterns that traders must know: Doji. The Doji pattern is formed when the Open Price and Close Prices are the same or almost the same, and there is Low and High Price, so the candle has nearly nobody with a lower and upper wick. ... Hanging Man. ... Hammer. ... Morning Star and Evening Star. Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai
NSE:BANKNIFTYEducation
by UnknownUnicorn59699627
8
#How to Trade in Option Market 💲🤑💲💸💰#We Make Only Profit. #HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. what is option ? Options are a type of derivative product that allow investors to speculate on or hedge against the volatility of an underlying stock. Options are divided into call options, which allow buyers to profit if the price of the stock increases, and put options, in which the buyer profits if the price of the stock declines. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai laken wo Backup bhi ready kr rhe hai take 2023 kese wjh se krab bhi jaye to economy pe zada Farak na pade..
NSE:HDFCBANKEducation
by UnknownUnicorn59699627
5
All About Options 👇Hello Everyone👋 Today we will be talking about What are Options So let us get Started, What is Options Trading :- Options trading is a type of trading specific security on a specific date at a time and closing it at the date on which the options are getting to end. Here end doesn't mean the options are going to end forever it means that options are getting end of that month on stocks and every Thursday of Index in Indian markets. Many people also trade options because they can be taken in less Money, Eg:- Bajaj Finance is 7300 currently now but its option can be taken in 4000 or even 3000, that's why people try in Options. As stock prices are very volatile, options prices are even more volatile than Stock shares. Options are generally risky but some of the options strategies are relatively less risky. Options trading may seem very complicated at first, but it's easy to understand if you know a few key points like Option greeks, How money burns in Option, How Options eat money in Range bound and etc. Anybody who wants to trade options can do it simply just following the steps:- To trade options there are just four steps but for basics 1. Have a very good knowledge of options otherwise just go away from here and do what you are doing 2. If the First Step is Done then Open a trading account 3. Pick which option to buy or sell 4. Predict the market and then select the strike price What are the " Two main " types of options :- There are two main types of options: calls and put, Call options allow us to buy the options at a fair price whereas Put options are the opposite of call options, Put options allow us to sell the options at a fair price. You can see further for more details about them. What is Call in Options ? Call Option :- In call options, a position is taken when a contract is purchased from the seller. In this transaction, you have to give back the shares to the seller from which you have taken and what you pay to him is your premium called, the seller is given a premium to sell shares at the strike price. What is Put in Options ? Put Option :- In put options, a position is taken when a contract is purchased from the seller. In this transaction, you have to give back the shares to the seller from which you have taken and what you pay to him is your premium called, the seller is given a premium to sell shares at the strike price. See I have told you about call seller and put seller we also say them as " Writer " so don't get confused between them What is Call Buying and Call Selling ? Call Buying :- When we buy a Call, we pay the options premium in exchange to get the rights to buy shares at the strike price on a certain date, Investors most often buy calls when they are bullish on a stock. Call Selling :- When we are selling a Call option, we are selling its rights to someone of the underlying security at a set price before a specific date. The seller gets a premium for agreeing for delivering the security for a pre-set price before a set date if the buyer is demanding Which is Better Between them :- If the stock price moves up significantly then buying a call option is much better than owning the stock like the seller. If the market is In a range then Call selling is a nice option because a call seller doesn't lose a premium like the Call Buyer in ranging markets. Example of an Options Contract :- Just assume that you have forecasted XYZ and got the market will go up, So now you have decided to buy up a call and selected a strike price so that selected strike price trade at 130 now, and a call seller is looking for selling calls at 140 with a time limit of 1 month. If the share price lies below 140 till the end of the option, then the call seller keeps the shares and collects a premium by selling them to anyone else. What is Put Buying and Put Selling ? Put Buying :- When we buy a Put, we pay the options premium in exchange to get the rights to buy shares at the strike price on a certain date, Investors most often buy Puts when they are bearish on a stock. Put Selling :- When we are selling a Put option, we are selling its rights to someone of the underlying security at a set price before a specific date. The seller gets a premium for agreeing for delivering the security for a pre-set price before a set date if the buyer is demanding. Which is Better Between them ? If the stock price moves down significantly then buying a Put option is much better than owning the stock like the seller. If the market is In a range then Put selling is a nice option because a call seller doesn't lose a premium like the Put Buyers in ranging markets. Example of an Option Contract :- Just assume that you have forecasted XYZ and got the market will go down, So now you have decided to buy up a put and selected a strike price so that selected strike price trade at 130 now, and a put seller is looking for selling calls at 140 with a time limit of 1 month. If the share price lies below 140 till the end of the option, then the call seller keeps the shares and collects a premium by selling them to anyone else. The Important Thing :- Like this Idea and Follow us on Trading view. Bye Bye Hope You all Love it We will be meeting very soon till the next idea Have a Nice day and health
NSE:NIFTYEducation
by UKnowN_ThE