Bearish means we expect the prices to go down. Ideally, we should be able to sell the shares first and then buy them back at a lower price to make money. This concept is called short selling. However, it is not practical to sell something that you do not have, hence a concept of SLBM…
Nifty Analysis — Stance Bullish ⬆️ Recap from yesterday: “But before we go long, let us give it a day or two because the reaction today may be the after-effect of the adjustments and rebalancing that was done over the last 2 to 3 days due to year-end.” Nifty was falling gradually, almost maintaining the same slope…
You might have heard the experts say “Trade with a stop loss”, “Define your target profits” etc. When you trade stocks, it is quite difficult to set the profit targets & the stop loss simultaneously. Options trading solves that! If your research says go bullish, then we can deploy a strategy called Bullish Debit Spread….
Nifty Analysis — Stance Bullish ⬆️ Recap from yesterday: “In the end, made peace with whatever happened during the day. When we start trading on 1st April, we will start with a bullish stance.” Nifty surprises everybody and recovers the loss of the final 45mts of trade on 28th March. What a good start to the new…
Before we discuss the options strategies, I felt we must learn the importance of a good research. Research here means the homework required to know if we need to buy or sell a stock. The reasons to buy or sell a stock could be technical, fundamental, supply/demand etc. You need not be an expert analyst…
Nifty Analysis — Stance Bullish ⬆️ Recap from yesterday: “We are still hanging on to the inverse head and shoulders pattern and strongly hope we should have some movement to the 22295 levels by tomorrow.” 4mts chart Unbelievable intraday price action by Nifty50 today. A rise of 369 points ~ 1.67% and then a sharp fall of…
CALLS and PUTS are like the left and right wings of a stock – Since HDFCBK is at 1450, it has a CALL option valued at Rs15.95 and PUT option valued at Rs14.7 When the price of the HDFCBK stock goes up, the value of the CALLS will appreciate and the PUTS will depreciate. Similarly,…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “We drew an inverse Head & Shoulders pattern on the 22nd. If that holds true, we should be getting some assistance tomorrow or the 28th” 4mts chart Nifty did more than okay today, we opened above the resistance level of 22051 and then steadily climbed to 22181 before…
Yesterday we discussed the flexibility of making money on all 3 directional moves:- UP DOWN FLAT The 2nd reason why people trade options is because of Leverage. i.e. you can handle more share quantity with less money. For example: HDFC Bank is trading at: Rs1450, to buy 550 shares you need to spend 550×1450 =…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “The support of 22051 will be crucial and N50 has to defend it if we wish to go bullish.” 4mts chart No one would really believe it if we said Nifty50 had an opening low of 21947 i.e. 133 points below the last session close. Well, it was…
