Get started

Optionstrading

#banknifty important levels for todayAs we can see nifty bank is at a crucial level around the all time high area, i would be very cautious in going long as well as short at this time, so it is better to wait for some important levels to break either on the up or the down side. In the attached image I have marked key levels on both sides based on the technical analysis. For the long side 43228 and 43386 are key levels to look for, and for going short(my personal favourite based on the technicals) 42769 and 42556 are important. So, keep these levels in mind and plan your trade accordingly, the key is "watch your risk"!
NSE:BANKNIFTY
by pkindian01
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
NSE:RELIANCEEducation
by Divyaapugal
25
EASY OPTION TRADING STRATEGY FOR NIFTY INDEX TRADING Key Levels For Day Trading Support Zones For Nifty Intraday Trading on Fiday First Resistance Zone For Nifty – 17284 – 17293 Second Resistance Zone For Nifty – 17220 – 17230 Third Resistance Zone For Nifty – 17165 – 17181 Forth Support Zone For Nifty – 17060 – 17072 Resistance Zones For Nifty Intraday Trading on Fiday First Resistance Zone For Nifty – 17380 – 17370 Second Resistance Zone For Nifty – 17472 – 17458 Third Resistance Zone For Nifty – 17540 – 17528 –
NSE:NIFTYShort
by manojshinde27