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Learn Institutional Trading Part-2What is Investing? Investing involves committing your money to various assets like stocks, mutual funds, gold, real estate, or bonds to grow your wealth over time. Investing is generally a long-term strategy, focusing on the gradual accumulation of wealth. Key Types of Investments Stock Market Investments: Buying shares of companies. Mutual Funds: Pooling money with other investors. Bonds: Lending money to companies or governments for interest. Gold & Real Estate: Physical assets that typically grow over time. Investment Strategies Value Investing: Buying undervalued stocks. Growth Investing: Investing in companies with high growth potential. Dividend Investing: Investing in companies that pay regular dividends. Benefits of Investing Builds wealth over time. Helps fight inflation. Provides financial security.
NSE:FINNIFTY1!Education
by SkyTradingZone
4
Breakout from cup and handle pattern Grasim Cup and Handle Breakout Setup Grasim is forming a classic Cup and Handle pattern on the daily chart. ✅ Breakout Level: 2790 🛑 Stoploss: Below 2650 (handle low) 🎯 Target Zone: 3290 (based on depth projection and prior highs) Pattern Logic: Rounded cup base indicates accumulation Handle pullback was shallow with declining volume Breakout attempt with volume surge Price above 20 EMA & 50 EMA RSI > 55 and MACD nearing bullish crossover
NSE:GRASIMLong
by Punit190
1
Hindalco Symmetrical Triangle breakout setup🔹 Pattern: Symmetrical Triangle 🔹 Breakout Level: ₹660 🔹 Stoploss: ₹635 (below swing low) 🔹 Target Zone: ₹850 – ₹900 🔹 Risk–Reward: 7.6 – 9.6 🔹 Timeframe: Positional (swing to medium term) --- 📊 Chart Analysis: Hindalco has broken out of a well-defined symmetrical triangle on the daily chart, with strong price compression followed by bullish breakout confirmation. The triangle height is ~₹200, projected from the breakout zone, giving a target range of ₹850–₹900. 🧠 Stoploss placed below the last swing low inside the triangle to avoid false breakdown traps.
NSE:HINDALCOLong
by Punit190
Learn Institutional Option Trading Part-6Mutual Funds in India: Mutual funds pool money from multiple investors and invest in a diversified portfolio. Types: Equity Mutual Funds Debt Mutual Funds Hybrid Funds Index Funds & ETFs Systematic Investment Plan (SIP) is a popular method to invest monthly with discipline. Government Schemes: PPF (Public Provident Fund) NSC (National Savings Certificate) EPF (Employees Provident Fund) These are safe, tax-efficient, and suitable for conservative investors.
NSE:BANKNIFTY1!Education
by SkyTradingZone
5
Learn Institutional Option Trading Part-4Recent Growth of Options in India: Retail participation has surged. Weekly expiry options (especially on Bank Nifty) have become extremely popular. SEBI introduced lot size and margin regulations to control excessive speculation. Investing in India What is Investing? Investing means allocating money into assets like stocks, mutual funds, bonds, gold, or real estate to earn returns over time. Major Investment Options in India: Equities (Shares) Mutual Funds Fixed Deposits Public Provident Fund (PPF) Gold (Physical and Digital) Real Estate Bonds and Debentures
NSE:HDFCBANKEducation
by SkyTradingZone
5
Learn Institutional Option Trading Part-3In India, options are traded primarily on: NSE (National Stock Exchange) BSE (Bombay Stock Exchange) The Securities and Exchange Board of India (SEBI) regulates the derivatives market and ensures fair practices. Why is Option Trading Popular in India? Leverage: Traders can control large positions with small capital. Hedging: Investors use options to protect their portfolios from market fluctuations. Income Generation: Strategies like covered calls can provide regular income. Speculation: Traders can bet on price movements with limited risk.
OANDA:BTCUSDEducation
by SkyTradingZone
6
Styrenix Performance Materials Ltd - Breakout Setup, Move is ON.#STYRENIX trading above Resistance of 2485 Next Resistance is at 3295 Support is at 1675 Here are previous charts: Chart is self explanatory. Levels of breakout, possible up-moves (where stock may find resistances) and support (close below which, setup will be invalidated) are clearly defined. Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:STYRENIXLong
by MandeepSinghKohli
Institutions Option Database Trading Part-6Deep Dive into Options Basics (For Data Traders) Options are contracts giving the right but not the obligation to buy or sell an asset at a certain price before a set date. They are used for hedging, speculation, and generating income. 🛠️ Two Types: Call Option: Right to buy an asset. Put Option: Right to sell an asset. Backtesting means testing a strategy using past data to check performance. Key for data-driven option trading. Example: Load 1-year option chain data for BANKNIFTY. Apply rules: Buy Call when IV drops by 10% & PCR < 0.8. Check PnL for each trade. Filter for success rate > 65%.
MCX:CRUDEOIL1!Education
by SkyTradingZone
Learn Institution Trading Part -6Introduction to Institutional Option Trading Institutional option trading refers to the sophisticated strategies used by hedge funds, mutual funds, insurance companies, proprietary trading firms, and foreign institutional investors (FIIs) to manage portfolios, hedge risks, and generate consistent alpha from the derivatives market. Unlike retail traders, institutions operate with large capital, access to advanced technology, and deep market insights, allowing them to structure complex trades. 2. Why Institutions Trade Options Institutions don’t usually trade options for quick profits. Their trades are designed to meet broader objectives: Hedging Equity Portfolios Volatility Trading Generating Yield on Holdings Market Making and Arbitrage Directional or Non-directional Speculation 3. Core Institutional Option Strategies Let’s explore the most popular strategies that institutions use with real-world logic behind them. A. Covered Call (Buy-Write) Use: Income generation from long-term stock holdings Structure: Buy stock + Sell Call Option (OTM or ATM) Institutional Use Case: A mutual fund holding Reliance shares might sell monthly call options against its holdings to generate monthly income (premium), enhancing total returns.
NSE:BANKNIFTYEducation
by SkyTradingZone
7
Support and Resistance Support Level: A price level where demand is strong enough to prevent the price from falling further. It's like a floor—buyers enter here expecting prices to rise. Example: If Nifty falls to 22,000 repeatedly and bounces back, 22,000 becomes a support level. 🔹 Resistance Level: A price level where selling pressure overcomes buying, preventing prices from rising. It's like a ceiling—sellers dominate at this level. Example: If Bank Nifty rises to 50,000 but fails to move above, 50,000 is resistance. 📊 How to Identify Them: Historical price charts Trendlines Moving averages Fibonacci levels Volume analysis 📈 Use in Trading: Buy near support Sell near resistance Use breakout strategy when price breaches either level
NSE:HDFCBANKEducation
by SkyTradingZone
4
Advanced Institutions Option Trading - Part 10Option Pricing Models Institutions rely on theoretical models to value options precisely. Models Used: Black-Scholes Model: Most common for European Options Binomial Model: For American options Monte Carlo Simulations: For complex path-dependent options Bachelier Model: For negative rate scenarios These models help forecast fair value, hedge ratios, and profit probabilities. 🔹 17. Algorithmic and Quant Option Trading Institutional desks often use automation for efficiency. Tools & Techniques: Python, R, C++ for strategy coding Machine Learning for volatility prediction Option Flow Analysis (Unusual Orders) Real-time Gamma Exposure Mapping Quant desks track Volga, Vanna, Charm, and other second-order Greeks for precise hedging.
MCX:GOLD1!Education
by SkyTradingZone
4
Advanced Institutions Option TradingFinancial Market is a marketplace where assets such as stocks, bonds, commodities, and derivatives (like options) are bought and sold. Key components: Equity Markets – Shares of companies Debt Markets – Government or corporate bonds Derivatives Market – Futures, Options Currency and Commodity Markets Options are financial contracts giving the buyer the right (not obligation) to buy/sell an asset at a set price before a specific date. ✅ Types of Options: Call Option: Right to Buy Put Option: Right to Sell ✅ Key Terminologies: Strike Price: Agreed price to buy/sell Premium: Cost of the option Expiration Date: Validity of the contract ITM/ATM/OTM: In-the-money / At-the-money / Out-of-the-money
NSE:BANKNIFTYEducation
by SkyTradingZone
2
INFOSYS LTD Making higher high trend on daily time frame.Indian IT Sector is witnessing a recovery as most of the IT stocks closed on a postive note. Infosys Ltd being one of the secotral leader is seen making higher highs and higher lows trend on daily time frame as the with above average volume of 42 days (approx 2 Months). The stock has closed above an important level of 1628 which acted as a hurdle. Now the stocks has suatianed above 1628 level a next resistance level of 1666.40 and 1684.25 seems to be achivabele. MACD Indicator is alredy trading above zero line which signals postive momentum and alog with it ADX indicator is at 25.95 where +DI is trading above -DI which indicates strenghth in momentum. let me know your thought in comment below.
NSE:INFYLong
by shashankkadam67
Option Trading Master class Part -6What is Option Trading? Definition: Options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an asset at a pre-decided price within a specific timeframe. Types of Options: Call Option: Right to buy Put Option: Right to sell Option Participants: Buyers (Holders): Limited risk, unlimited reward Sellers (Writers): Limited reward, unlimited risk How Options Work (With Example) Imagine Reliance stock is trading at ₹2,500. Call Buyer: Buys a ₹2,500 Call Option by paying ₹50 premium Scenario A (Stock goes to ₹2,600): Intrinsic value = ₹100 Profit = ₹100 – ₹50 = ₹50 per share Scenario B (Stock goes to ₹2,400): Option expires worthless Loss = ₹50 (premium paid)
NSE:NIFTYEducation
by SkyTradingZone
2
Option Trading Master class Part -7Fundamentals of Stock Investing Types of Investors: Value Investors: Focus on undervalued companies Growth Investors: Target high-growth potential stocks Dividend Investors: Prefer regular income from dividends Research Parameters: Earnings per Share (EPS) Price-to-Earnings Ratio (P/E) Return on Equity (ROE) Debt-to-Equity Ratio Industry Trends Tools for Investing: Demat and Trading Account Research Platforms (e.g., TradingView, Screener.in) Portfolio Tracker (e.g., Zerodha Console)
BSE:SENSEXEducation
by SkyTradingZone
2
Advanced Technical Master classMulti-Timeframe Analysis involves analyzing multiple chart timeframes (Monthly, Weekly, Daily, 4H, 1H) to confirm trend direction and improve timing accuracy. Application: Identify long-term trend (Monthly/Weekly) Use Daily/4H for entry signals Filter noise with lower timeframes Key Tools: Moving Averages, Trendlines, MACD Module 2: Advanced Chart Patterns Key Patterns Covered: Harmonic Patterns (Gartley, Bat, Crab) Elliott Waves (Impulse & Corrective Waves) Wyckoff Method (Accumulation/Distribution Phases) Practical Use: Pattern + Volume = Strong Entry Combine with Fib levels for reversal confirmation Module 3: Volume Price Analysis (VPA) Core Principle: Volume precedes price. Learn to read volume spikes, absorption, and exhaustion. Indicators to Use: On Balance Volume (OBV) Volume Profile VWAP
NSE:NIFTYEducation
by SkyTradingZone
2
Institution Option Trading Part-7Regulatory & Risk Considerations SEBI (India) & SEC (US) regulations limit speculative exposure. Institutions must report Open Interest, Position Limits, Margin Usage. Must adhere to VaR (Value at Risk) frameworks and internal risk policies. Institutional Trading during Events Earnings Seasons: Institutions use straddles/strangles for earnings plays. Budget or RBI Policy: Protective collars/volatility trades. Global Crisis (e.g. COVID): Use of massive protective puts (SPX, NIFTY). VIX & Institutional Behavior India VIX plays a vital role in determining institutional option strategies. High VIX = buying protection, long gamma strategies. Low VIX = selling premium, income strategies.
NSE:SBINEducation
by SkyTradingZone
11
Institution Option Trading Part-2.0Institutional Order Flow – Market Impact Option Flow as Signal: Large trades in options market may indicate upcoming moves in underlying assets. Unusual Options Activity (UOA): Tracked by smart money traders to anticipate institutional moves. Dark Pools: Institutions often use off-exchange mechanisms to avoid price impact. Tools & Analytics Used by Institutions Volatility Surface Analysis Greeks Sensitivity Scans (Delta, Gamma, Vega, Theta) Skew Charts & Term Structure Trade Cost Analysis (TCA) Liquidity Heatmaps Algo Execution Strategies (TWAP, VWAP)
NSE:NIFTYEducation
by SkyTradingZone
4
Institution Option Trading Part-6Introduction to Institutional Option Trading Institutional option trading refers to the use of options by large financial institutions such as hedge funds, pension funds, insurance companies, mutual funds, and proprietary trading desks to manage risk, enhance returns, or speculate on price movements. Unlike retail traders, institutions bring scale, research, and complex strategies to the options market. Slide 2: Key Characteristics of Institutional Traders Large Capital Base: Institutions trade in bulk with millions or billions of dollars. Data Advantage: Access to premium data, analytics, and predictive algorithms. Advanced Infrastructure: High-frequency execution systems, smart order routing. Risk Management Focus: Use options for hedging equity, credit, FX, or commodity exposure. Regulatory Boundaries: Subject to risk limits, compliance, and disclosures
NSE:BANKNIFTYEducation
by SkyTradingZone
4
Institution Option Trading Part-5Popular Strategies Tested via Option Database IV Crush Earnings Strategy Buy/sell options before earnings when IV is high, expecting post-earnings IV drop. High OI Breakouts Trade breakouts from strikes with high OI using price+OI correlation. Skew Arbitrage Analyze IV skew and trade underpriced/overpriced strikes accordingly. Time Decay Capture (Theta) Sell options with high Theta before expiry using historical decay rates. 💡 Advantages of Option Database Trading Quantitative Edge: Allows logic-based decisions over emotion-driven trades. Backtesting Confidence: Know the probability of success before risking capital. Scalability: Can analyze hundreds of symbols and expiry combinations. Automation Ready: Can link with brokers to run fully algorithmic systems.
BSE:SENSEXEducation
by SkyTradingZone
2