First time doing nifty 50 analysis For nifty 50 =
17630-635 is a level where price rejected multiple times, so if price price gives a breakout at 5 min. chart, one should buy call option.
Reasons for continuation-
1. From last two days there is no directonal move so it may
2.Monthly expiry ( I have observed many times that if two or three days before the monthly expiry move is range bound then there is high probability for directional move)
If you are a index option buyer then you must try this strategy. This works for me, it will work for you.
It gives you huge risk reward as compare to other days becuase the on direction move.
Please read & do comment so that I can find more opportunities to improve my self for more good analysis.
THANKS
Options
19 July Nifty Prediction based on Multiple AnylysisNSE:NIFTY
As we can see in the chart at 45 minutes time frame, Market took support at 15864 and gone up by almost 100 points and in the process forming a W pattern.
If the market Opens flat and starts going up based on the candlestick pattern and breaches 16070 we can take at the money CE for a target of 16,150.
If because of any news the market starts going down we can take a PE only if the market breaks 15864.
How and when should apply which Option's strategyHey everyone! 👋
This post is just for sharing knowledge about Future and Options strategies,
First of all, one should build view (bias) on market direction, it may be bullish, bearish, sideways, or there may be some events too, like budget day or quarterly results seasons or may be something else, once view is built then what are the ways to apply futures and options strategies are shown in this post.
Options trading may sound risky or complex for beginner investors, and so they often stay away.
Some basic strategies using options, can help a novice investor protect their downside and hedge market risk.
Options trading is meant to provide a process that defines the selling and buying of options by a trader.
The options trading strategies are what make up the options trading. There are various ways that a trader can use the options trading strategies to their advantage.
Options trading is a great way to increase your returns as an investor. You will be able to generate profits when the market goes up or when it goes down. However, with so many options trading strategies on offer, you may find it difficult to know which one to choose. This post is showing ideas of the different options strategies and help you choose the right one based on your views.
What Are Options Strategies?
Options are one of the most flexible and powerful way for investing in the stock markets.
Investors can utilize stocks in many ways, including buying and holding onto them to long-term appreciation in value or short-term trading to make a quick buck. However, the stock market is huge, and investors can utilize many sophisticated strategies.
The first complex strategy is called a call option. Call options are contracts that enable the holder to purchase a stock or other asset at a specific price within a specific time frame. If the price goes above the strike price, the owner can buy the stock at a lower price and then sell it at a higher price. This can result in a great return, but a loss is possible if the stock doesn't move or move in opposite direction.
Types of Options Strategies
There are four ways to trade options strategies : call, put, spread, and straddle. First, let's start with the call and put. A call is a contract that gives the owner the right to buy a stock at a specific price on or before the option's expiration date. On the other hand, a put is a contract that gives the owner the right to sell a stock at a specific price on or before the option's expiration date.
Spreads and straddles are both strategies used to manage risk. A spread is created by buying the same type of option with the same expiration date but with a different strike price. The strike price is the underlying stock price when the option is exercised. A straddle is created by buying an option with a lower strike price and an option with a higher strike price with the same expiration date.
Pros and Cons of Options Strategies
Just like selecting a stock to trade or invest in, selecting an options strategy can be a difficult task with risks and potential payouts. The pros and cons of options strategies help you decide which is best for your investing style.
Pros:
- Lower investment costs
- Stock options can be used as a way to hedge your investment or portfolio risk
Cons:
- High risks and losses can occur if you don't research your options strategy
- Options can only be exercised at the expiration date
Conclusion
Traders can use Options strategies to take advantage of both rising and falling prices of stocks. We hope you have gained a deep understanding of what options strategies are this post.
See you all next week. 🙂
RK_Charts
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.
Nifty can be positionaly buy Nifty affecting indicies Dow and Nasdaqe looks positive for next 2 weeks, We can see 32150 & 32850 levels on Dow,
That means Indian markets may trade positively for next few days,
There may be some minor corrections in some days, but overall we can see 16750 on Nifty and 35800 on Banknifty in next 1-2 weeks,Important Support for Nifty would be 15965 and 34275 for Banknifty,
One can create long positions specially in Nifty , Can accumulate 16200 CE of 21st July Expiry from 16200 to till 16050, with the Stop loss of 15965, Average price would be 150 and the targets may be 550-600 before 21st July Expiry.
BankniftyBANKNIFTY 30JUN2022 32500PE (Sell) =82.4
BANKNIFTY 30JUN2022 34500CE (sell) =93.15
BANKNIFTY 30JUN2022 33000CE (buy) =817.35
BANKNIFTY 30JUN2022 34000PE(buy)=582.7
max profit in this trade=6888
max loss in this trade=5613
Breakevens
32776.0-34224.0
days left for expiry 4
amount required to trade this strategy 68,817.44/-(calculated from Icici direct brocker account)
ensure all trades are executed otherwise loss may be unlimited.
Probablity of profit=49%
Risk to reward =1:1.2
BANKNIFTY & NIFTY SUPPORT AND RESISTANCE FOR [22-06-2022]NSE:BANKNIFTY
yesterday a sharp rise has occurred but still, we are in bear trend as the market didn't break its previous swing high.
all sentiments and news are negative this is a sell-on-rise market.
Levels marked on the chart.
NSE:NIFTY
Bank nifty and nifty analysis important levels are marked on the chart.
please always trade with stop loss to avoid big drawdown.
Happy trading & keep learning
nifty 16june 2022hi here is a limited risk and limited reward strategy for nifty options
NFO NIFTY22616 OPT-PE 16000 50 Buy 0 0 0.00 0
NFO NIFTY22616 OPT-CE 16600 -50 Sell 64536 16201 0.00 80737
NFO NIFTY22616 OPT-CE 16400 50 Buy 0 0 0.00 0
NFO NIFTY22616 OPT-PE 15800 -50 Sell 64336 16201 0.00 80537
the trade is in single lot
minimum amount required for this strategy is 33000 max. reward is 5670 max. risk 4328.
risk reward ratio 1:1.3
Breakeven
15914.0-16486.0
probability of profit is 48%
(above table is from my brocker website data)
no of days remaining expiry =3 days
take the trades as per your capacity, ensure all trades are executed otherwise risk will become unlimited.
market goes is any direction max risk and reward is specified. you can exit the position as per your profit/loss bearing capacity ;)