Nifty - Bears taking the bulls for a rideNifty reacted to the news events last week and broke the 3 weeks range on the downside. Is this a confirmation of a downtrend? The video explains.
X-indicator
Institution Option Trading Part-3How Option Database Trading Works (Step-by-Step)
Step 1: Data Collection
Real-time data from NSE, BSE, CBOE, or broker APIs (Zerodha, Interactive Brokers, etc.).
Store tick-level or EOD snapshots into SQL/NoSQL databases.
Step 2: Data Cleaning & Normalization
Remove missing values, align timestamps, convert formats.
Normalize values like IV to make models consistent.
Step 3: Exploratory Data Analysis (EDA)
Use Python (Pandas, Matplotlib) or R to analyze:
Option volume spikes
Volatility contraction/expansion
Unusual OI build-ups
Step 4: Backtesting Trading Strategies
Strategies like Straddle, Strangle, Iron Condor, or IV Crush are tested.
Entry/exit logic coded, and trades simulated on historical data.
Step 5: Deploying Models
Successful strategies get automated using APIs or Trading Bots.
Regular performance metrics tracked and refined.
Nifty - The crash :(Nifty closed in deep red today post the sad news of plane crash. (My prayers with those who lost their family members). What action can traders expect in Nifty next? Watch the video to know.
Trading Road Map 1. Foundation Stage (Beginner Level)
Understand Markets: Equity, Commodity, Forex, Derivatives
Basic Concepts: What is a stock, index, option, futures
Learn Platforms: TradingView, Zerodha, Upstox
Risk Awareness: Avoid FOMO, control emotions, capital safety
🔹 2. Skill Building Stage (Intermediate Level)
Technical Analysis: Charts, Patterns, Indicators (MACD, RSI, Moving Averages)
Fundamental Analysis: Earnings, Balance Sheets, PE ratio
Paper Trading: Practice without risking money
Journaling: Track trades, wins/losses, and learn from mistakes
🔹 3. Strategy Development (Advanced Level)
Create Systems: Scalping, Swing, Positional
Options Mastery: Strategies like Iron Condor, Straddle, Spread
Risk Management: Position sizing, SL rules, R:R ratio
Backtesting: Validate your strategy on historical data
🔹 4. Execution & Scaling (Pro Level)
Discipline & Psychology: Stick to plans, stay unemotional
Automation & Tools: Algo Trading, Screeners
Capital Scaling: From ₹10K to ₹10L+ systematically
Diversification: Trade across assets, build passive income
Trading with Experts What is Option Trading?
Option trading is a financial strategy where traders buy and sell options contracts — financial instruments that derive value from underlying assets like stocks or indices. Each option gives the buyer the right (not obligation) to buy (Call) or sell (Put) at a specified price before expiry.
🔹 Types of Options:
Call Option – Right to Buy
Put Option – Right to Sell
Index Options – Based on Nifty, Bank Nifty, etc.
Stock Options – Based on individual stocks (e.g., Reliance, HDFCBANK)
🔹 Key Components:
Strike Price – Agreed price to buy/sell
Premium – Price paid for the option
Expiry Date – Validity of the contract
Lot Size – Fixed quantity of shares per contract
ITM, ATM, OTM – In-the-money, At-the-money, Out-of-the-money
🔹 Why Trade Options?
✅ Leverage with less capital
✅ Hedging portfolio risk
✅ Strategic plays (Bullish, Bearish, Neutral)
✅ Income generation via selling options
Option Trading Master ClassOption Trading Master Class – Overview
🔹 Module 1: Basics of Options
What are Options? (Call vs Put)
Terminologies: Strike Price, Premium, Expiry, Lot Size
European vs American Options
🔹 Module 2: Options Pricing & Greeks
Intrinsic vs Extrinsic Value
Option Greeks: Delta, Gamma, Theta, Vega, Rho
How volatility affects option price
🔹 Module 3: Strategies for Beginners
Covered Call, Protective Put
Bull Call Spread, Bear Put Spread
Pros & Risks of each strategy
🔹 Module 4: Advanced Strategies
Iron Condor, Straddle, Strangle
Butterfly Spreads, Calendar Spreads
Adjusting positions for risk
🔹 Module 5: Live Market Application
Using Option Chain Analysis
Open Interest & Volume Interpretation
Entry/Exit points with technical support
🔹 Module 6: Psychology & Risk Management
Avoiding overtrading & expiry traps
Position sizing, SL rules
Emotional discipline in volatile markets
Nifty - Down on the uphillNifty formed an indecision candle today and appears to be catching up with the EMAs. Watch the video to know what traders can expect next.
Option Trading with Option chainIf you're looking for a simple options trading definition, it goes something like this: Options trading gives you the right or obligation to buy or sell a specific security on or by a specific date at a specific price. An option is a contract that's linked to an underlying asset, such as a stock or another security.
Options trading also involves two parties: the holder (buyer) and the writer (sometimes called the seller). Holders are investors who purchase contracts, while writers create them. The holder pays the writer a premium for the right to sell or buy a stock by a certain date.
Technical Cass 9Hammer:
Doji :
Three-white soldiers:
Bullish Engulfing:
Tweezer Bottom:
How to confirm candlestick pattern?
Here are two reliable methods for confirming candlestick patterns with indicators:
MACD: A bullish crossover occurring alongside a bullish candlestick strengthens the case for upward movement.
RSI: Divergence between price and RSI can signal potential reversals, especially when aligned with candlestick patterns.
Learn Institutional options trading Part-4SEBI Regulations & Reforms
SEBI has made multiple reforms to ensure safe and transparent options trading:
Peak Margin Requirements – Traders must maintain full upfront margin.
Ban List – Illiquid stock options are periodically banned.
Lot Size Revisions – To control leverage and speculation.
Options Chain Transparency – Exchanges provide real-time data.
Investor Education Initiatives – Workshops, certifications, and sandbox testing.
Risks in Options Trading'
Options can generate high rewards, but they carry significant risks, especially if misused without understanding.
Key Risks:
Premium decay
Volatility risk
Leverage risk
Liquidity issues in stock options
Wrong position sizing
SEBI has introduced risk-mitigation measures, such as margin rules and banning of certain contracts for illiquid stocks.
Learn Institutional options trading Part-5Future of Options Trading in India
What Lies Ahead:
More weekly expiries (e.g., MIDCPNIFTY)
Improved retail education
Stricter compliance and reporting
Rise in algo trading and automation
Integration with global exchanges (GIFT City)
With platforms like NSE IFSC, Indian traders may soon get access to international stock derivatives from Indian soil.
Learn Institutional options trading Part-6Psychology & Discipline in Options Trading
Success in options requires:
Defined trading plan
Strict risk-reward ratio
Avoiding revenge trades
Avoiding overtrading on expiry days
Regular review and journaling of trades
Emotional control and discipline are more important than strategy in consistent profitability.
Nifty - What does a gap up opening with a red close mean?Nifty opened with a gap up and closed with a red candle leaving a gap to be filled. How should traders comprehend this price action? Watch the video to know.
Nifty - Is the recent up move really positiveNifty closed with a positive sentiment last week post RBIs policy decision. Will the flip flop end and markets will move unidirectionally now giving respite to the confused traders. Watch the video to Know.
Advance Institutions Option Trading - Lecture 3Options trading might feel like gambling on a single trade, but informed decisions make it fundamentally different. Reckless trading without a plan can resemble gambling but is not the proper way to trade. With discipline and skill, options trading stands apart from luck-based activities.
Options involve risk and are not suitable for all investors. Certain requirements must be met to trade options. Before engaging in the purchase or sale of options, investors should understand the nature of and extent of their rights and obligations and be aware of the risks involved in investing with options.
Advance Institutions Option Trading - Lecture 1Institutional traders are professionals trading for large entities like mutual funds, hedge funds, etc. Oftentimes they will trade options to hedge their positions, but they may also trade options as pure speculation.
Equirus Securities is one of the leading domestic institutional equities brokerage firms in India with more than 180 companies under over coverage and empanelment with almost all domestic institutions and many leading FIIs.
Option Chain AnalysisTo read an options chart effectively, consider the following steps:
Identify the strike price associated with each line on the chart.
Observe the direction and steepness of the lines to gauge the options' delta values. ...
Assess the options' positions concerning the current market price of the underlying asset.
Basic to Advance in Trading Understand market trends and patterns.
Use risk management strategies, like setting stop-loss orders.
Focus on liquid assets with high volume.
Keep emotions in check and stick to a trading plan.
Limit the number of trades to manage risk.
Constantly educate yourself on market dynamics and trading strategies.
Class for Advanced Trader part 2To understand how to become a trader, follow these seven steps:
Complete your education. ...
Learning the basics of trading. ...
Determine the product in which you want to trade. ...
Develop trading techniques. ...
Gain trading experience. ...
Understand risk management. ...
Review your trades.
Class for Advanced Trader Advanced trading strategies usually involve multiple technical indicators and more complicated instruments, such as options and futures.
Put Call Ratio (PCR) Trading 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).
Divergence Test Divergence is when the asset price moves in the direction opposite to what a technical indicator indicates. When a stock is diverging, it signals weaker price trends and the beginning of a reversal.
Price Action Trading Price action trading is based on analyzing the raw movement of price over time without relying heavily on indicators. It involves picking out key levels, reviewing candlestick patterns, and recognizing reversal and continuation setups to capitalize on market opportunities.
