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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
Bank Nifty: +2221 to +6979 points upside potential in Index#Bank Nifty 14 Jun 2024 "Life is Simple, we make it complicated, So is Trading. Discover Simple, Yet Powerful Ideas." In Play : HH : HL Summary • CMP : 50085 • Clean Price Action with Vol favor's BULLS FOOT PRINT • Nice gap filled in both the directions and bears losing steam • Trading right AROUNG VP mountain - ATH : 51,133 Conclusion • CMP 50085 • Looks good for going NORTH • Higher Levels could be around o Imm Higher Levels : 52,261/54,025 o Potential Levels : 55,316/57,004 Wish You Happy & safe trading "Always Respect Risk" Happy Trading Jai Hind Jai Bharat
NSE:BANKNIFTYLong
by DhirajSinghBais
8
NIFTYNXT50-NIFTYJR Intraday Prediction Levels for 24 April 2024The chart indicates 15 min time frame. These Levels act as Support and Resistance according to position of price. These are strictly for Intraday Trading only. Execution only after break out and close above the Resistance zone or break down and close below the Support zone. These levels act as support and resistance. You have to trade according to level breakout or breakdown. To buy or sell you can follow Buy/Sell Indication given by indicator or you can follow cloud also. If you are a new trader then just watch (No Trade) these levels for some days. Happy trading. Disclaimer: I am not a SEBI Registered Analyst. Anything posted here is my own analysis and views. This is created for educational purposes only. Always consult with your Financial Advisor before taking any decision or trade.
NSE:NIFTYJR
by suraranjanganguli
Banknifty Intraday Prediction Levels for 21 March 2024The chart indicates 15 min time frame. These Levels act as Support and Resistance according to position of price. These are strictly for Intraday Trading only. Execution only after break out and close above the Resistance zone or break down and close below the Support zone. These levels act as support and resistance. You have to trade according to level breakout or breakdown. To buy or sell you can follow Buy/Sell Indication given by indicator or you can follow cloud also. If you are a new trader then just watch (No Trade) these levels for some days. Happy trading. Disclaimer: I am not a SEBI Registered Analyst. Anything posted here is my own analysis and views. This is created for educational purposes only. Always consult with your Financial Advisor before taking any decision or trade.
NSE:BANKNIFTY
by suraranjanganguli
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
Banknifty 15 Nov Put Trade 💸💸👑💲👑Royal Trade👑 BANK NIFTY IMPORTANT LEVEL WE BUY Call AND TARGET LEVEL IN VIDEO 45869 // 45788 // 45734 // 45613 // 45558 // 45488 // 45292 // 45158 // 44901 // 44796 // 55561 // 44410 This is only level we upload new idea in morning 9.30 Buy when Market Break The support or Resistance and wait for the closing and set stop loss at the last opening of the candle. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:BANKNIFTY
by Optionclub
Bank Nifty Support Resistance Levels 18Oct 1. ** Previous Market Levels: ** You mentioned that there was an exact rejection from resistance levels, and the market found support at 44371. This suggests that 44371 is an important level to watch. 2. ** Support Levels for Tomorrow (18/10/23):** - 44371 - 44200 - 44120 3. **Resistance Levels for Tomorrow (in the upside):** - 44371 (which was the previous resistance) - 44532 - 44713 4. **Trading Plan:** You suggested a buying plan based on whether the market opens gap down or flat: - If the market opens flat and above 44532, consider planning a buying strategy. - If the market opens below 44532, consider other levels.
NSE:BANKNIFTYLong
by santubittu
Bank-nifty Which side we can Go🤑👑👑Royal Trend👑 Topic Trading Things How to make Big Profit💸 With Small Account In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸 How market really work with number's 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. 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. Technical trader ​Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
BSE:SENSEX
by Optionclub