Advanced Data Base Option's Trading #NSE #BSEInstitutional options trading refers to the buying and selling of options contracts by large entities such as banks, pension funds, hedge funds, mutual funds, and other institutional investors. These institutions accumulate funds from various investors to trade on their behalf.
Options are financial derivatives that give the holder the right (but not the obligation) to buy (call option) or sell (put option) an underlying asset (such as stocks, commodities, or currencies) at a predetermined price (strike price) within a specified time frame (expiration date).
Here are some key points about institutional options trading:
1.Institutional Traders vs. Retail Traders:
*Institutional Traders: These traders manage accounts for institutions or groups. They trade larger volumes and have access to more exotic products, including complex options.
*Retail Traders: These traders operate personal accounts and typically trade smaller sizes of assets.
2.Advantages of Institutional Trading:
*Access to a wide range of financial instruments, including exotic options.
*Ability to execute large trades efficiently due to their substantial funds.
*Influence on market prices due to their significant trading volumes.
3.Service Providers Used by Institutional Trading Firms:
* Bloomberg
* Thomson Reuters
* Factset
* Marketwatch
4.Educational Requirements and Job Opportunities:
*Becoming an institutional trader often requires a strong educational background in finance, economics, or related fields.
*Job opportunities include roles in trading, risk management, and portfolio management.
5.Earnings:
*Institutional traders can earn substantial salaries, but compensation varies based on experience, performance, and the institution.
Remember that institutional trading strategies involve careful analysis, calculated moves, and a long-term perspective, as these traders significantly impact market dynamics.
Techincalanalysis
Advanced RSI Trading #Options The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security.
The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The indicator was developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, New Concepts in Technical Trading Systems.
The RSI can do more than point to overbought and oversold securities. It can also indicate securities that may be primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.
Data Base Trading Part - 5 #StocksAn option chain lists data on calls and puts, underlying prices, strike prices, expiration, and moneyness. Call option data is listed to the right of the table. Put option data is listed to the left of the table. Strike prices are listed on rows in the centre of the table.
Avoid options with low liquidity; verify volume at specific strike prices. calls grant the right to buy, while puts grant the right to sell an asset before expiration. Utilise different strategies based on market conditions; explore various options trading approaches.
A call option buyer stands to profit if the underlying asset, say a stock, rises above the strike price before expiry. A put option buyer makes a profit if the price falls below the strike price before the expiration.
Data Base Trading Part = 4 #Institutions Options chain can be defined as the listing of all option contracts. It comes with two different sections: call and put. A call option means a contract that gives you the right but does not give you the obligation to buy an underlying asset at a particular price and within the option's expiration date.
An option chain trading strategy can be formulated by seeing accumulations in OI (open interest) and volumes in various option strikes. You should note, here, that open interest implies the number that tells you how many options or futures contracts are presently outstanding/open, within the market.
Data Base Trading Part - 3 #NSE #BSE What exactly is an Option Chain? It is the complete picture pertaining to all the option strikes of the Nifty in a single frame. Remember, just as there is an option chain for the Nifty, you have option chains for all the key indices traded in F&O and also for individual stocks where options trading is permitted.
Tips for Trading in Bank Nifty Option
Stay Informed About Economic Events and Market Trends. ...
Use Technical Analysis to Identify Patterns and Trends. ...
Develop a Trading Plan and Stick to It. ...
Set Realistic Targets and Stop Losses. ...
Use Options Greeks to Assess Risk and Return.
Bank Nifty is considered one of the best indices for options trading due to its high liquidity, volatility, and significant price movements. These characteristics offer ample trading opportunities and the potential for substantial profits in a short time frame.
Data Base Trading Part -2 #NSE #BSE #OptionchainTo study an option chain, focus on the current market price, displayed in the centre. Analyse the built-up data to understand market direction based on recent changes in open interest and price. ITM call options are typically highlighted in yellow, making it easier to distinguish them from other options.
Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
So, if you see an aggressive increase in open interest in puts, it is most likely being led by the institutions who are selling puts and it hints at a support level below which the market is unlikely to fall. The reverse interpretation holds in case of call options OI movement. You can position your trades accordingly.
Data Base Trading Part -1 #NSE #BSE #OptionchainOption chain: Option chains provide specific data related to options contracts, including strike prices, expiration dates, implied volatility, and open interest. Traders use this data to construct
options strategies, manage risk, and profit from price movements in the underlying asset.
An option chain has two sections: calls and puts. A call option gives the right to buy a stock while a put gives the right to sell a stock. The price of an options contract is called the premium, which is the upfront fee that an investor pays for purchasing the option.
Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
The Psychology of Money--The Psychology of Money --
1. Real wealth is the money that you don't see
2. Focus on lowering risk, not maximizing reward
3. Focus only on factors you can control
4. Compound interest x Time = wealth
5. Money doesn't get peoples' respect
6. Only take risks you can recover from
7. Never ever happened won't happen
8. Focus on your systems, not outcomes
9. Plan for when the plan goes sideways
10. Money only solves money problems
11. Your goals will not be the same forever
12. Don't take permanent decisions lightly
13. Money is just a tool, not the goal
14. Learn to say when you have "enough"
15. Talk is cheap, you are your actions
16. Decisions are never perfectly rational
17. Don't fear change. It will happen inevitably
18. Some lessons must be experienced to be understood
19. Desperate people believe whatever sounds like salvation
20. The best thing that money can buy is your freedom.
The Five Pillars Of Wealth #FutureTopic = The Five Pillars Of Wealth
The BIGGEST reason you don’t reach your goals is…
Not what you think.
It’s not just laziness…
Not the obstacles that life throws your way…
It’s your lack of CONVICTION.
You see,
When you’re chasing a goal, but the path to achieve it is uncertain…
You fear that you might be wasting your effort. So what do you do?
👉 You stop taking action.
You stop working so hard.
You start to procrastinate.
Our lack of CONVICTION is the very root of our laziness!
But,
What if you KNEW it would work out eventually? Wouldn’t you be rushing to get to work now?
That’s why belief must come first. Even when the odds aren’t in your favor.
Sure, not everything you believe is possible, is actually possible. But…
Everything you believe isn’t possible, will never be possible.
Belief. Must. Come. First.
PCR For Intraday Option's Trader Certainly! The Put-Call Ratio (PCR) is a statistical indicator used in options trading to gauge market sentiment. It compares the trading volume of put options (which give the right to sell an asset at a predetermined price) to that of call options (which give the right to buy an asset at a predetermined price) for a specific underlying security (such as a stock or ETF) within a given timeframe (usually a day or a week). The formula for calculating the PCR is:
PCR=Call Option OI / Put Option OI
Here’s what it tells us:
A rising PCR (greater than 0.7 or exceeding 1) indicates that traders are buying more puts than calls. This suggests bearish sentiment, as investors may be speculating that the market will move lower or hedging their portfolios against a potential sell-off.
A falling PCR (below 0.7 and approaching 0.5) is considered a bullish indicator. It means more calls are being bought relative to puts, signaling optimism about a bull market ahead.
Remember that the put-call ratio can be influenced by recent events, earnings reports, and overall market conditions.
PCR (PUT CALL RATIO) With Professionals The Put Call Ratio (PCR) is a tool in the stock market to understand how investors feel about a stock or the market's future. It compares the number of put options to call options traded. More puts traded mean investors expect prices to fall (bearish). More calls traded mean investors expect prices to rise (bullish).
PCR is also considered as a contrarian indicator which helps traders not to get caught in the herd mood of the market. Based on the extreme PCR ratio, the trader might take a call to buy or sell against the prevailing mood of the market
Option Trading with Professionals Options are financial contracts that give the holder the right (but not the obligation) to buy or sell a financial instrument (like stocks, funds, commodities, or indexes) at a specific price within a certain time frame.
There are two main types of options:
Call options: Give the right to buy the underlying asset.
Put options: Give the right to sell the underlying asset.
Options derive their value from an underlying asset, and a stock option contract typically represents 100 shares of the underlying stock.
Key Features of Options:
Strike Price: The price at which an option can be exercised.
Expiration Date: The date at which an option expires and becomes worthless.
Option Premium: The price at which an option is purchased.
Option Buying In 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
#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..
what is The symmetrical triangle patternThe symmetrical triangle pattern is a technical analysis chart pattern that forms when the price of an asset is moving within a range, with the highs and lows converging towards each other.
it is characterized by two trend lines that converge toward each other, forming a triangle.
It is confirmed when the price breaks out of the triangle, either above the upper trend line (bullish) or below the lower trend line (bearish).
Traders often look for a price target that is equal to the height of the triangle at its widest point, projected in the direction of the breakout.
The symmetrical triangle pattern can be a reliable indicator of future price movement, but it should be used in conjunction with other technical analysis tools and market indicators.
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all the best and happy trading
5 Books that changed my life In this video, I discuss 5 books which made me the trader I'm today.
Here , I discuss priceless books for traders who want to learn in depth technical analysis .
I also talk about a very good book for traders who want to learn pre defined strategies without knowing much about technical analysis.
And, lastly I discuss about a must have book for options traders.
Let me know which book changed your life?
Cheers .
TECHNICAL ANALYSIS, FOREX, EURNZD#3
I leave this chart for educational purpose because I really didn't enter here but i definitely traded it in my demo acc.
Confluence 1: Formation of a perfect head and shoulder.
Confluence 2:Breakdown.
confluence 3: Retest with a decent bearish candle.
Stay humble.
Stay blessed.
Work hard.