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#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 ISL-TREND
5
26 Jul ’23 Post Mortem on BankNifty | Options premiums are LOWBanknifty on the other hand gave a trend reversal signal in just a day. For nifty we had atleast 3 days in succession. I took some short positions yesterday intraday and was all geared up to further attack by shorting more CALLS today. The opening minutes looked encouraging, so did the period from 10.35 to 11.15 but 2 things went against it. The options data showed lack of interest in creating CE credit spreads i.e shorting near ATM call option and buying a far away OTM option. Banknifty started to rally and take the place of NiftyIT which reversed from its intraday high. It was like 2 brothers who came prepared from evening to support their sister, when one brother got tired, the other one jumped in. In our case the BankNifty brother did more than just support - it rallied an impressive 252pts ~ 0.55% up till 14.30. The short trade negation came in banknifty only after the 46000 got taken out. Let us see how the expiry day is getting played out tomorrow because as it stands the options premium in banknifty looks pretty low. The India VIX staying in the 10 range is also a discouragement for the bears that are still left. ... Please comment with your thoughts, opinion or bias, I will respond with mine!
NSE:BANKNIFTY
by viswaram
11 Jul '23 Post Mortem on Nifty + Long call continues...Today we had a perfect inverted V formation. The high of the day at exact 12.00 noon. A rally of 82pts from opening level and then a fall of 66pts. Even though nifty fell today, it was showing so much of positive energy and a general reluctance to fall. We will bring up the comparison with banknifty shortly & it will make sense. Today's peak formation ensured we are getting a double top at the ATH levels ~ 19508. The profit booking may be attributed to that. If we continue to fall in the coming days - its better to change the bias from long to neutral. --- Trades Taken Yesterday I had reversed my short position to long position & had carried the 19400/19300 PE bullish credit spread overnight. Luckily it worked out alright today. By 10.43 I exited at a price of 29.6/12.9. I exited because more than 50% of premiums had decayed & not because I was bearish. At the same time I entered into 19400/19300 PE bullish credit spread of the 20th July series for a price of 74.7/48.4. We then had the classic reversal, almost back to the open levels. Somehow I felt the risk:reward was not matching & then exited the new position at a loss by 14.46 @ 79.7/49.4 and got back to the 19400/19300 PE spread in the 13th Jul series for 32.7/12.3. The 15.00 candle really scared me and if you calculate the risk:reward was 3980:1020. So I exited the credit spread & went ahead with the call debit spread of 19300/19400 CE @ 176.15/95.15 by 15.03. The rationale being 19300 was still in the money & might offer some cushion as expiry is in 2 days. Whereas 19400 PE could go in the money if the move is 50pts or more.
NSE:NIFTYLong
by viswaram
Trade for 14 JuneHello traders Hope you have seen the last post for entry and exit. Take a look again at yesterday post and look today's chart it has not crossed the 43950 level and on buy side it crosses 44050 level and go till 44120 level if you are smart and not greedy you have booked some points after 44050 level. Again the levels are same which are marked on chart buying is above 44160 and buying more at 44050 level because now it is support. On sell side if it breaks 44050 let it sustain below the level and take a small quantity. Mark in mind never trade against your rule, money and risk management, never trade in FOMO. Thanks
NSE:BANKNIFTY
by Green_Red_Blood
GOLD 08/06/2023 Bears have the upper handTVC:GOLD price seesaws around the intraday high as it prints slight gains after dropping the most in a week the previous day. Even so, TVC:GOLD remains indecisive on a weekly basis as markets struggle to find clear direction amid a blackout ahead of the Fed and mixed feelings on growth concerns Global. Organization for Economic Co-operation and Development (OECD) flagged concerns about a weak global economic transition amid higher interest rates and spurred buyers of TVC:GOLD , especially after a rate hike surprise rates from central banks in Australia and Canada. However, the easing of concerns about the Federal Reserve (Fed) rate hike by 0.25% in June contrasts with the possibility of a rate hike in July to underpin the Gold Price rally towards the end. year. SELL GOLD zone 1953 - 1955 Stop Loss : 1958 Take profit1 : 1948 Take profit 2: 1940 Take profit 3: 1935 Note: Installing TP SL fully wins the market and is safe in trading
TVC:GOLDShort
by SupperTrading-FX
NIFTY FUTURES LEVVELS 26.05.23Special markings in Red, blue and Green solid lines are very important areas and opening of the trade in the morning gives us a reasonable idea along with other factors as to how the day should proceed. If you have been following the levels from the previous charts by now you would have seen the importance of how correctly marked areas worked . we can visualize from the chart where a trade with defined risk can be taken. The dotted lines in red blue and green can be tagged incase of a break on either side. The dotted lines ate the untouched VAH, VAL or poc which can be tagged. If you carefully watch the previous charts you will understand how the dotted lines get tagged during the course of the day keep following for live market updates.
NSE:NIFTY1!
by SABMR
BNB Price Prediction, will BNB’s price hit $528.24?BNB’s price at the same time last week was $307.79. It has moved by 1.24% in the past week and is currently at $308.85. Infact, in the past 24 hours, BNB has dumped by -1.70%. There is a slight bearish sentiment in the crypto market. The long term sentiment, however, remains bullish and BNB could hit $490.92 in 2024. The total circulating supply of BNB as of writing this article was $157,886,280 and the market cap of BNB remains at $48,765,651,999. BNB, BNB could hit $528.24 in 2023 BNB’s price prediction for the most bearish scenario will value BNB at $247.08 in 2023 BNB’s previous All Time High was on 10th May 2021 where BNB was priced at $686.31
Long
by tradewith_ritik
Price/Earnings: amazing interpretation #2In my previous post , we started to analyze the most popular financial ratio in the world – Price / Earnings or P/E (particularly one of the options for interpreting it). I said that P/E can be defined as the amount of money that must be paid once in order to receive 1 monetary unit of diluted net income per year. For American companies, it will be in US dollars, for Indian companies it will be in rupees, etc. In this post, I would like to analyze another interpretation of this financial ratio, which will allow you to look at P/E differently. To do this, let's look at the formula for calculating P/E again: P/E = Capitalization / Diluted earnings Now let's add some refinements to the formula: P/E = Current capitalization / Diluted earnings for the last year (*) (*) In my case, by year I mean the last 12 months. Next, let's see what the Current capitalization and Diluted earnings for the last year are expressed in, for example, in an American company: - Current capitalization is in $; - Diluted earnings for the last year are in $/year. As a result, we can write the following formula: P/E = Current capitalization / Diluted earnings for the last year = $ / $ / year = N years (*) (*) According to the basic rules of math, $ will be reduced by $, and we will be left with only the number of years. It's very unusual, isn't it? It turns out that P/E can also be the number of years! Yes, indeed, we can say that P/E is the number of years that a shareholder (investor) will need to wait in order to recoup their investments at the current price from the earnings flow, provided that the level of profit does not change . Of course, the condition of an unchangeable level of profit is very unrealistic. It is rare to find a company that shows the same profit from year to year. Nevertheless, we have nothing more real than the current capitalization of the company and its latest profit. Everything else is just predictions and probable estimates. It is also important to understand that during the purchase of shares, the investor fixates one of the P/E components - the price (P). Therefore, they only need to keep an eye on the earnings (E) and calculate their own P/E without paying attention to the current capitalization. If the level of earnings increases since the purchase of shares, the investor's personal P/E will decrease, and, consequently, the number of years to wait for recoupment. Another thing is when the earnings level, on the contrary, decreases – then an investor will face an increase in their P/E level and, consequently, an increase in the payback period of their own investments. In this case, of course, you have to think about the prospects of such an investment. You can also argue that not all 100% of earnings are spent paying dividends, and therefore you can’t use the level of earnings to calculate the payback period of an investment. Yes, indeed: it is rare for a company to give all of its earnings to dividends. However, the lack of a proper dividend level is not a reason to change anything in the formula or this interpretation at all, because retained earnings are the main fundamental driver of a company's capitalization growth. And whatever the investor misses out on in terms of dividends, they can get it in the form of an increase in the value of the shares they bought. Now, let's discuss how to interpret the obtained P/E value. Intuitively, the lower it is, the better. For example, if an investor bought shares at P/E = 100, it means that they will have to wait 100 years for their investment to pay off. That seems like a risky investment, doesn't it? Of course, one can hope for future earnings growth and, consequently, for a decrease in their personal P/E value. But what if it doesn’t happen? Let me give you an example. For instance, you have bought a country house, and so now you have to get to work via country roads. You have an inexpensive off-road vehicle to do this task. It does its job well and takes you to work via a road that has nothing but potholes. Thus, you get the necessary positive effect this inexpensive thing provides. However, later you learn that they will build a high-speed highway in place of the rural road. And that is exactly what you have dreamed of! After hearing the news, you buy a Ferrari. Now, you will be able to get to work in 5 minutes instead of 30 minutes (and in such a nice car!) However, you have to leave your new sports car in the yard to wait until the road is built. A month later, the news came out that, due to the structure of the road, the highway would be built in a completely different location. A year later your off-road vehicle breaks down. Oh well, now you have to get into your Ferrari and swerve around the potholes. It is not hard to guess what is going to happen to your expensive car after a while. This way, your high expectations for the future road project turned out to be a disaster for your investment in the expensive car. It works the same way with stock investments. If you only consider the company's future earnings forecast, you run the risk of being left alone with just the forecast instead of the earnings. Thus, P/E can serve as a measure of your risk. The higher the P/E value at the time you buy a stock, the more risk you take. But what is the acceptable level of P/E ? Oddly enough, I think the answer to this question depends on your age. When you are just beginning your journey, life gives you an absolutely priceless resource, known as time. You can try, take risks, make mistakes, and then try again. That's what children do as they explore the world around them. Or when young people try out different jobs to find exactly what they like. You can use your time in the stock market in the same manner - by looking at companies with a P/E that suits your age. The younger you are, the higher P/E level you can afford when selecting companies. Conversely, in my opinion, the older you are, the lower P/E level you can afford. To put it simply, you just don’t have as much time to wait for a return on your investment. So, my point is, the stock market perception of a 20-year-old investor should differ from the perception of a 50-year-old investor. If the former can afford to invest with a high payback period, it may be too risky for the latter. Now let's try to translate this reasoning into a specific algorithm. First, let's see how many companies we are able to find in different P/E ranges. As an example, let's take the companies that are traded on the NYSE (April 2023). As you can see from the table, the larger the P/E range, the more companies we can consider. The investor's task comes down to figuring out what P/E range is relevant to them in their current age. To do this, we need data on life expectancy in different countries. As an example, let's take the World Bank Group's 2020 data for several countries: Japan, India, China, Russia, Germany, Spain, the United States, and Brazil. To understand which range of P/E values to choose, you need to subtract your current age from your life expectancy: Life Expectancy - Your Current Age I recommend focusing on the country where you expect to live most of your life. Thus, for a 25-year-old male from the United States, the difference would be: 74,50 - 25 = 49,50 Which corresponds with a P/E range of 0 to 50. For a 60-year-old woman from Japan, the difference would be: 87,74 - 60 = 27,74 Which corresponds with a P/E range of 0 to 30. For a 70-year-old man from Russia, the difference would be: 66,49 - 70 = -3,51 In the case of a negative difference, the P/E range of 0 to 10 should be used. It doesn’t matter which country's stocks you invest in if you expect to live most of your life in Japan, Russia, or the United States. P/E indicates time, and time flows the same for any company and for you. So, this algorithm will allow you to easily calculate your acceptable range of P/E values. However, I want to caution you against making investment decisions based on this ratio alone. A low P/E value does not guarantee that you are free of risks . For example, sometimes the P/E level can drop significantly due to a decline in P (capitalization) because of extraordinary events, whose impact can only be seen in a future income statement (where we would learn the actual value of E - earnings). Nevertheless, the P/E value is a good indicator of the payback period of your investment, which answers the question: when should you consider buying a company's stock ? When the P/E value is in an acceptable range of values for you. But the P/E level doesn’t tell you what company to consider and what price to take. I will tell you about this in the next posts. See you soon!
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NSE:HDFCBANKEducation
by Be_Capy
8