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Supertrend Indicator: Best for Options Trading?Supertrend Indicator: Best for Options Trading? The Supertrend indicator is a popular tool in technical analysis, designed to identify trends in asset prices. Unlike other indicators that only show direction, Supertrend also considers volatility, making it more responsive to market conditions. It generates buy and sell signals, indicating optimal entry and exit points based on trend strength. In options trading, where timing and trend clarity are crucial, Supertrend's ability to manage risk and confirm trends can significantly enhance strategy effectiveness. This article explores why the Supertrend indicator is uniquely suited for navigating the complexities of options markets. What is the Supertrend Indicator? The Supertrend is a tool for technical analysis that helps to determine the direction of price trends in financial markets. It overlays the cost charts and provides buy and sell signals in line with the current trend. Unlike simple moving averages, Supertrend incorporates both price direction and volatility by adjusting its values as per market conditions. There are two main components of this system: i) a basic moving average line ii) an upper/lower band that fluctuates according to volatility. Traders often use it to verify trends, place stop-loss orders, and set entrance into trades or exit points. In general, its simplicity and efficiency in trend-following strategies make it popular among traders. How to Calculate Supertrend Indicator? The Supertrend indicator is calculated using the formula below: Supertrend=(High+Low)/2+(Multiplier)*(ATR) Where: High and Low refer to the highest and lowest prices for an underlying asset over a given period of time. ATR (Average True Range) measures market volatility. The ATR is calculated from the highest, and lowest prices as well as the closing price of an underlying asset over a specific time frame Multiplier is a constant value that traders use to push the indicator to be more or less sensitive to price movements. Follow these steps to calculate the Supertrend Indicator for option trading: Determine the indicator's period: Determine the ATR over a specified period, typically 14 periods, but can also be adjusted. Calculate the Average True Range (ATR): This measures market volatility and is based on the highest and lowest prices as well as the closing price of the underlying asset over that particular period. To calculate ATR, sum up all true ranges for each day and divide them by the number of periods. Calculate the multiplier: This ranges from 1-2 typically depending on the underlying asset’s volatility where higher multipliers are used for more volatile underlying assets. Calculate the upper and lower bands: The upper band is calculated by adding the ATR multiplied by the multiplier to the median price, and subtracting the ATR multiplied by the multiplier from the median price. The lower band is calculated by subtracting the ATR multiplied by the multiplier from the median price. Benefits of Using Supertrend Indicator in Option Trading Using the Supertrend indicator in option trading offers several benefits that can enhance trading strategies and decision-making processes: 1. Trend Identification The Supertrend indicator helps traders identify whether the market is trending up or down. This is crucial in options trading because trading with the trend increases the chances of making profitable trades. For example, if the Supertrend shows an uptrend (green line), traders might consider buying call options or selling put options, aligning their strategy with the market's direction for higher probability trades. 2. Entry and Exit Signals The indicator gives clear signals for entry and exit points. When the price crosses above the Supertrend line, it can signal a buy opportunity (or a signal to sell puts). On the other hand, when the price crosses below the Supertrend line, it can signal a sell opportunity (or a signal to buy puts). 3. Risk Management Supertrend also acts as a dynamic stop-loss level. Traders can place their stop-loss orders just below the Supertrend line (for long positions) or above the Supertrend line (for short positions). This helps in managing risk effectively by limiting potential losses if the market moves against the position. 4. Volatility Adjustment The Supertrend indicator adjusts to volatility, making it adaptable to different market conditions for option trading. In highly volatile markets, the Supertrend lines widen, which reflects increased volatility and adjusts the stop-loss levels accordingly. This feature is particularly useful in options trading where volatility plays a significant role in pricing. Limitations and Challenges of Supertrend Indicator Using the Supertrend indicator in option trading comes with several limitations that traders should be aware of: 1. Lagging Indicator The Supertrend indicator is primarily a trend-following indicator, which means it reacts to price movements after they occur. In fast-moving markets, this lag can result in delayed signals, potentially causing traders to enter or exit positions later than ideal. 2. Whipsaws Like many trend-following indicators, the Supertrend can produce false signals during periods of market consolidation or when there are sudden price spikes followed by reversals (whipsaws). These false signals can lead to losses if traders act on them without confirming market conditions. 3. Market Volatility High market volatility can make the Supertrend indicator less reliable. When markets are highly volatile, rapid price movements can trigger frequent and inconsistent signals from the indicator. Traders may receive multiple buy or sell signals in a short period, leading to confusion and potentially poor trading decisions. Therefore, during periods of high volatility, it's crucial for traders to exercise caution and consider using additional indicators or techniques to confirm signals before taking action. 4. Parameter Sensitivity The performance of the Supertrend indicator heavily depends on its parameters (e.g., ATR multiplier, period). Adjusting these parameters can alter the indicator's sensitivity to price movements, but finding the optimal settings for different market conditions requires extensive testing and may not always be straightforward. All in all, the Supertrend indicator, while offering various benefits, should be used with caution and in conjunction with other indicators for a comprehensive analysis and decision-making for trading options. Conclusion Incorporating the Supertrend indicator into your option trading strategy can provide valuable insights into market trends and potential entry points for trades. Remember to combine it with other indicators and adjust settings to suit your trading style. Dhan is the first broker in the world to offer Options Trading from TradingView.com. Know more about this here !
NSE:BANKNIFTY
by Dhan
Reliance Trade By Professionals👑🤑💸💸💸✔#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:RELIANCE
by AyuTraders
BANKNIFTY and HDFCBANK Best Intraday Trade🤑💲💸✔#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:HDFCBANK1!
by UnknownUnicorn59699627
1
Reliance Intraday By Professional Option's Trader🤑💲💸💰#We Make Only Profit. #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:RELIANCE1!
by UnknownUnicorn59699627
3
Nifty Best Intraday Trade By Bull 🤑💸💰💲#We Make Only Profit. #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:NIFTY
by UnknownUnicorn59699627
4
Bank Nifty Chart Analysis Trading Opportunity Ahead Bank Nifty Chart Analysis for Budget Day and Net Month Bank Nifty has formed a **Head & Shoulder pattern** and has already given a **breakdown** 📉. Now, the key focus will be on whether the pattern **succeeds or fails**, which will determine the upcoming market direction. Be prepared for **both possibilities** in the trading sessions following the Budget announcement. 🔹 **Best Trading Opportunity**: To take advantage of the volatility on Budget Day, a **hedged position** can be created using **Call & Put options** near key levels: 📌 **49,950** 📌 **50,500** 💡 If Bank Nifty makes a **one-sided move of 1,500 points**, this strategy can prove to be highly beneficial. ⚠ **Disclaimer**: This is for **educational purposes only** and not financial advice. Trade wisely and manage risk effectively. Stay updated and trade smart! 🚀📈 #BankNifty #StockMarket #BudgetDay #TradingStrategy #Nifty #OptionsTrading
NSE:BANKNIFTY
by manojshinde27
20th Dec ’23 - BankNifty falls 967pts - stance is now bearish 🐻BankNifty Today Analysis It all started with BankNifty today, the options flow was indicating immense bearishness. But Nifty50 options flow was showing strong bullishness. This contrasting directional bias barely works in our market. And 9 times out of 10, Nifty50 mends its way to go as per BankNifty’s directional bias. The reason is, BankNifty is still the leader of the pack. 4mts chart link - click here So first, the collusion again with NiftyIT to get Nifty50 to get to a new top and then a meltdown. BankNifty shaved off 967pts intraday after getting a gap up open. The candle at 13.27 ensured we were re-entering the ascending channel. Just like we discussed yesterday - the directional move came and we were not caught off guard. You might have guessed when we went short today, yes as soon as the ascending channel top line was breached. The ensuing momentum gave us confidence in the bearish bets. What was more surprising was the breach of the bottom line of the ascending channel - I honestly did not see that coming. 63mts chart link - click here Technically Banknifty has not moved that much today, we just dropped 0.89% compared to 1.41% of Nifty50. There were some outliers today, ADANIENT -5.35%, ADANIPORTS -5.76%, RELIANCE -1.21%, LT -2.3%. And the subsectors were all in RED. I seriously do not know if it is a serious correction phase as the runup so far has been like a dream. The chances of something happening like this were quite evident today. BankNifty options premiums were screaming bearishness - I thought it was because of the expiry. And Nifty50 was showing strong bullishness. I bet my money on Nifty as the options prices were more rational as it was not expiry related. But since the BankNifty’s premium’s were not dropping - It gave me the warning shot. Quite fortunately was able to catch the top and low of a few strikes correctly. Also was able to switch between BN and N50 strikes quite seamlessly to take advantage of the mispricings. Who in the world will believe 22700 CE of Nifty50 had a premium of Rs3 for 1 DTE i.e. a strike 1500pts above spot?
NSE:BANKNIFTYShort
by viswaram
PostMortem on BankNifty Today & Analysis of 24 MAY 2023So we have some good news from one of the broker. Zerodha has enabled SENSEX & BANKEX futures & options trade. Those options expire every fridays. Most likely other brokers also will follow suit. So if you plan properly you get an expiry day-trade set up on  Tuesdays - FinNifty Wednesday - MidCapSelect Nifty (Poor liquidity) Thursday - Nifty50 & BankNifty Friday - Sensex & Bankex The biggest advantage I see is that you can try your option strategies 4 out of 5 days without taking positions overnight. This will help people who are wishing to become a full time trader! --- BankNifty had a down day today, fell more than Nifty comparatively. But not enough as we all anticipated. Yesterday US markets fell - SPX -1.12%, NDQ -1.2%. Other Asian and European markets also had big cuts, and our markets were still holding its ground.  Till 11.25 Nifty was rallying not falling - how is that for a change? The options data on Nifty was showing more upside potential, but we really hit a dead-end by 11.30. BankNifty options on the other hand was not as volatile as nifty, I was finding it difficult to gauge the direction from the options flow today. Only after 11.30, I came to know that banknifty is starting to reverse. Even then it did not spook the options premium. The PE premiums were well within its normal wednesday range, there was no unusual spike. The bulls in India were not worried with a global meltdown? I am starting to think the bulls here are too stubborn, they may dig themselves an early grave. --- 15mts shows the trading range converging, but no bias change as of now. Unless the support of 43253 is broken there will not be momentum. And you all know there is no resistance - so its an easy journey upwards. A small trigger/news/event will do to conquer new heights. --- 1hr shows the wedge formation quite decently. When the range converges, what follows is a quick expansion. Guessing the direction is not that easy because we are near all time highs. --- 2 days back we discussed how nifty broke the head & shoulders pattern to trade higher. What has formed today is a classic double top (M pattern). It has a higher weightage because the rejection is right at the resistance level of 18419.
NSE:BANKNIFTY
by viswaram
PostMortem on BankNifty Today & Analysis of 22 MAY 2023First time in many weeks, banknifty underperformed nifty50. Ideally this move should have come last week when nifty50 had 2 more resistances to break and banknifty was near ATH. Better late than never. Nifty50 shooting pass banknifty is actually good for the entire stock markets in India. Only when all the components have caught up - a bullish trend is synchronized. This will pave the way for further breakouts. Friday we went home with the news that Rs2000 denominated currency notes are getting removed from circulation w.e.f Sep 30 2023.  Theoretically this should be good news for the banks - approx. 2-3 lakh crore stashed cash is going to return to the banking sector. Majority of this will flow into fixed deposits, debt mutual funds, equity mutual funds & stocks. From a formal economic perspective - this may be the best decision ever made. Ideally Rs500 currency also should be withdrawn in the next 3 to 5 year (according to me) so that the digital migration will gain more momentum. Having said that, I assume the economists & advisors has taken into consideration what will happen to the informal economy which is the silent backbone of real economic activity in India. Nobody has any clue how much of turnover is happening there - but its still huge! Kirana shops, road side vendors, dalals, brokers, drivers, maids, caretakers, chaiwalas etc are all from the informal sector. I am not really sure how many of them even have a bank account, leave alone financial investment opportunities. My grandfather used to carry cash with him, keep some in almari & some in the cash-pot near pooja room. Usually when the number of notes goes up - he exchanged it for the highest denomination available & stored it. He did not use a bank account then! I assume there would be lot of people in India who does the same even today (hope they get saved). --- Coming back to our analysis, as per the options data there was lot of fresh shorts taken at CE side. Mostly in the afternoon session. This contradicts with the nifty50 view which has got some new hope as the H&S pattern was negated today. The encircled traded region which just nullified a bearish chart pattern would have caused lot of momentum shift. Again as per options data shorts were created on the PE side. As I see it, market participants are long on nifty and short on banknifty. A real tough scenario to play out as banknifty has 38% weightage. Possible options are niftyIT to outperform (12% weightage) along with Reliance (10%) & LT + ITC (8%).  This should be a mega fishing week for the option sellers as a strong breakout could only emerge if there is short-covering on banknifty. Nifty by itself may not be able to pull all the weight. Tomorrow's Finnifty expiry may lead the way when few positions in HDFC & Bajaj twins gets unwound. --- 15mts is in a range based trade as of now which kind of makes it a good reward:risk for non-directional option strategies ultra short term. --- 1hr shows the trading range getting narrowed, the lows are getting shifted higher and the highs are getting lower. What follows is usually a range expansion. Chart may say the break would be on the upside, but the reality could be dependent on even macro/news events.
NSE:BANKNIFTY
by viswaram
BN Vertical Call Credit SpreadFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound. A CE option mentioned below is a European Call Option, while a PE option is a European Put. A hedger always buys these options and a speculator mostly sells one. But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short strangle. In combination with this, if we buy much farther CE and PE, the short strangle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle. The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread. Since this week the view is bearish , we are taking only the CE leg of Iron Condor. As the week progresses, additional trade may be added. Please leave a comment if you need further clarification on the following trade --------------------------------------------------------------------------------------------------------- Buy 39500CE, Sell 38900CE The history of trades of this trade model is in the following link: docs.google.com My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :)
NSE:BANKNIFTYShort
by muhd_nihal
BN Iron CondorFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound. A CE option mentioned below is a European Call Option, while a PE option is a European Put. A hedger always buys these options and a speculator mostly sells one. But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short straddle. In combination with this, if we buy much farther CE and PE, the short straddle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle. The spread between buy and sell leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread. Please leave a comment if you need further clarification on the following trade --------------------------------------------------------------------------------------------------------- Buy 35600PE, Sell 36200PE Buy 38600CE, Sell 38000CE The history of trades of this trade model is in the following link: docs.google.com My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :)
NSE:BANKNIFTY
by muhd_nihal
3
BN Vertical Put Credit spreadFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound. A CE option mentioned below is a European Call Option, while a PE option is a European Put. A hedger always buys these options and a speculator mostly sells one. But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short strangle. In combination with this, if we buy much farther CE and PE, the short strangle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle. The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread. Since this week the view is bullish , we are taking only the PE leg of Iron Condor. As the week progresses, additional trade may be added. Please leave a comment if you need further clarification on the following trade --------------------------------------------------------------------------------------------------------- Buy 34700PE, Sell 35300PE The history of trades of this trade model is in the following link: docs.google.com My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :) And thank you for the DMs. I am fine, was just preoccupied with some personal errands :)
NSE:BANKNIFTYLong
by muhd_nihal
6
BN Vertical Call Credit SpreadFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound. A CE option mentioned below is a European Call Option, while a PE option is a European Put. A hedger always buys these options and a speculator mostly sells one. But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short strangle. In combination with this, if we buy much farther CE and PE, the short strangle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle. The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread. Since this week the view is bearish , we are taking only the CE leg of Iron Condor. As the week progresses, additional trade may be added. Please leave a comment if you need further clarification on the following trade --------------------------------------------------------------------------------------------------------- Sell 36800CE, Buy 37400CE The history of trades of this trade model is in the following link: docs.google.com My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :)
NSE:BANKNIFTYShort
by muhd_nihal
4
BN Vertical Call Credit SpreadFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound. A CE option mentioned below is a European Call Option, while a PE option is a European Put. A hedger always buys these options and a speculator mostly sells one. But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short strangle. In combination with this, if we buy much farther CE and PE, the short strangle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle. The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread. Since this week the view is bearish , we are taking only the CE leg of Iron Condor. As the week progresses, additional trade may be added. Please leave a comment if you need further clarification on the following trade --------------------------------------------------------------------------------------------------------- Sell 35500CE, Buy 36100CE The history of trades of this trade model is in the following link: docs.google.com My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :)
NSE:BANKNIFTYShort
by muhd_nihal
7
BN Vertical Call Credit SpreadFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound. A CE option mentioned below is a European Call Option, while a PE option is a European Put. A hedger always buys these options and a speculator mostly sells one. But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short strangle. In combination with this, if we buy much farther CE and PE, the short strangle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle. The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread. Since this week the view is bearish , we are taking only the CE leg of Iron Condor. As the week progresses, additional trade may be added. Please leave a comment if you need further clarification on the following trade --------------------------------------------------------------------------------------------------------- Sell 35700CE, Buy 36300CE The history of trades of this trade model is in the following link: docs.google.com My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :)
NSE:BANKNIFTYShort
by muhd_nihal
BN Vertical Put Credit spreadFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound. A CE option mentioned below is a European Call Option, while a PE option is a European Put. A hedger always buys these options and a speculator mostly sells one. But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short strangle. In combination with this, if we buy much farther CE and PE, the short strangle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle. The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread. Since this week the view is bullish, we are taking only the PE leg of Iron Condor. As the week progresses, additional trade may be added. Please leave a comment if you need further clarification on the following trade --------------------------------------------------------------------------------------------------------- Sell 34100PE, Buy 33500PE The history of trades of this trade model is in the following link: docs.google.com My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :)
NSE:BANKNIFTYLong
by muhd_nihal
2
Navigating Change: The Impact of SEBI's F&O PolicySEBI's new rules for F&O traders will take effect on November 20. The changes include increasing the contract size for index derivatives from Rs 5-10 lakh to Rs 15-20 lakh, which i believe is not a good idea. They are also reducing the number of weekly expiry options for index derivatives, which i see as a positive change. However, the decision to eliminate weekly expiry for Bank Nifty options is viewed negatively. It's hard to understand what SEBI is trying to achieve. i think the chairman believes she is making smart decisions, but it feels quite the opposite. It seems like they want to take more money from retail investors while claiming to act in their best interest. Increasing taxes, raising contract sizes, and removing Bank Nifty weekly expiration's doesn’t seem helpful for the stock market or retail traders. Retail investors and traders play a crucial role in providing liquidity for institutional investors, generating tax revenue for the government, and maintaining market vitality. However, it appears that SEBI primarily favors large traders and investors, which may seem unfair to the retail segment. Instead of educating retailers, there appears to be a focus on restricting their earning opportunities in the stock market. In the future, this may leave only major players able to trade in India's stock market. SEBI should realize that there are many stock markets in different countries, and if retail investors and traders face restrictions here, they will move on to Forex or US stocks, which often offer higher leverage and lower brokerage fees. Retail traders will trade regardless. The solution should be to educate investors and give them the freedom to make their own choices. I hope that in the future, SEBI will have a knowledgeable chairman who understands these issues better.
TVC:USOIL
by ard-komercisto
Navigating the Challenges of Stock Market TradingLife can be tough for many of us because we need to earn money, whether we enjoy our jobs or not. To make a living, we often have to sacrifice our time and energy. Finding something that truly satisfies us is a challenge in itself, and only a few people manage to achieve that. Even when some of us do find our passion, others may criticize us for not sticking to the jobs we studied for. While some discover their passion and pursue it, others may feel trapped in their career choices. For me, I find satisfaction in trading and investing in the stock market. I enjoy having the flexibility to spend my time how I want, which is why I chose this path. I know it isn't easy to earn money in the stock market, but I believe it's possible. With a strong desire to learn and confidence in my abilities, I am committed to making it work. Like many traders, I've faced my fair share of obstacles. I've tried various strategies, and, unfortunately, I've lost a significant amount of money along the way. Despite being cautious, the nature of trading means that losses can happen. I remember when COVID-19 hit; it sparked chaos in the market, and my portfolio crashed. At that point, some of my funds were locked, which limited my ability to buy dips. However, I persevered and found a way to recover. The journey didn’t stop there. After the pandemic, regulations changed, cutting leverage for trades. This was a significant setback for me, especially since I primarily traded in Futures & Options (F&O). Previously, I relied on leverage to amplify my trades, allowing me to use a portion of my funds to F&O trades while saving the rest for buy stocks . However, when the leverage was cut, I found myself in a difficult spot. Now, I have to use my entire capital for F&O trading, which limits my ability to invest in other opportunities. Additionally, They have increased the margin requirements for F&O trades, meaning I need to put in even more money to take positions. Despite these setbacks, I'm trying to manage my situation and adapt to the new trading environment. I remain hopeful that with patience and a solid strategy, I can find my way back to successful trading. After everything was set and going well another problem emerged: the market became extremely unpredictable due to global events, like the Russia-Ukraine war. I found that everything I’d learned seemed ineffective as I faced daily gaps in stock prices. I made losses instead of profits for some time, but I knew this volatility wasn't permanent. I decided to take a break from futures and options trading to focus on swing trading and creating and back-testing some strategies. To be frank,It took me more than three years to become profitable in the stock market. While I eventually became profitable, the journey remained challenging for many retailers. Taxes on trading profits and loss can be daunting, and the government frequently raises these taxes, further complicating the situation for traders. Recent changes implemented by the Securities and Exchange Board of India (SEBI), such as shifting from weekly expires to daily expires and now back to weekly expires, along with the changes in lot sizes and increased margin requirements, have made it more difficult for retail traders to navigate the market. The current regulatory environment seems to disadvantage retail investors who have invested years in learning about the stock market, developing patience, and gaining experience through both struggles and mistakes. Despite these efforts, it feels as though recent changes implemented by SEBI are making it more challenging for many retail traders, both struggling and profitable. It appears that these regulations may be favoring institutional investors who have more financial resources to navigate the market, leaving smaller investors and traders at a disadvantage. Despite these challenges, I want to stay hopeful for the future. I wish all traders the best in their journeys, hoping they find profitability and consistency in their trading. The path is not easy, but with perseverance, it's still possible to thrive in the stock market. "Anyone can choose anything, but only a few have the perseverance to stay the course on the path they’ve chosen."
NSE:BANKNIFTY
by ard-komercisto
4
Nifty Weekly Spot Chart Analysis - 15-19 April for OptionsNifty Spot Weekly Technical Chart Analysis for 15-19 April, 2024 📊 Range Trigger Point: 22519 📈 Day Range: 272 🎯 Buy Above: 22672 🎯 Average At: 22640 🎯 Buy Target 1: 22687 🎯 Buy Target 2: 22791 🛑 Buyer Stoploss: 22581 📉 Sale Below: 22608 🎯 Sale Target 1: 22351 🎯 Sale Target 2: 22247 🛑 Seller Stoploss: 22698 Don't forget to follow/boost/message to fuel my efforts for you! #nifty50 #Nifty #options #optionbuying #optiontrading #OptionsTrading #trade #trading
NSE:NIFTY
by NumroTrader
Best Entry In Option's By Professional's🤑💲💸✔✔#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:BANKNIFTY
by UnknownUnicorn59699627
2
#NIFTY Best Intraday By Professional's 🤑💲🤑✔✔✔💸#We Make Only Profit. #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:NIFTY
by UnknownUnicorn59699627
1
#Banknifty Intraday By big Bull🤑💸💲✔✔#We Make Only Profit. #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:BANKNIFTY
by UnknownUnicorn59699627
#FINNIFTY 100% Perfect Intraday Trade🤑#We Make Only Profit. #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:CNXFINANCE
by UnknownUnicorn59699627
2