Nifty Stance Neutral ➡ After last week’s rout, I had gone long on the index. Now when I look back, it was a poor decision to make. The reasons for going long was mostly because of the price action on the 5th of December when we had that humungous rally. This week we had an…
Nifty Stance Bullish ⬆️ Nifty continued to make new highs every other day this week, overall it has been a steady week with very few wild swings. Just compare the swing range of the previous week vs this, and you will understand what I am talking about. The new high is 23481 hit at the…
Yesterday we discussed how to use SLBM to go bearish on a stock. Due to its complexity, most traders refrain from using that method. A simpler approach would be to use the option strategy called Bear Put Spread. Let us take the example of ICICI Bank again. The current price is Rs1077. We BUY a…
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 Bearish⬇️ Recap from yesterday: “The only reason we pushed through the resistance yesterday was because of NiftyIT. And today NiftyIT started with cuts of -0.9%. Do you agree with me now that the main villain is NiftyIT which is preventing Nifty50 for a smooth directional trend?” 4mts chart Is Nifty above or below…
Nifty Weekly Expiry Analysis Between the last expiry and today, Nifty has just made +50.75pts ~ 0.26%. Some credit should be given to NiftyIT which helped Nifty to stay green when BankNifty was taking deep cuts. Looking at the chart, it is unable to make out even if we had a losing week on BankNifty…
Nifty Analysis Recap from yesterday: “So I would like to continue with my neutral stance till then. For bullish momentum to resume, Nifty will have to take out 19776 and 19875 in one go, but for a bearish signal a single support break would suffice.” 5mts chart link — click here The open was right at the…
The difference between options trading and gambling is a fine line. Few of the data presented by popular news anchors look pretty scary. The screenshot below is from a report published by Anuj Singhal of CNBC-TV18 — source: twitter This video talks in depth about the ratio of options turnover versus the underlying market cap. USA which…
This is also a range-bound strategy but has a higher reward-to-risk ratio which gives the trader the feeling of earning more per money spent. i.e. a feeling of higher ROI. Here you need to sell the PUT and CALL options for the ATM strike and then buy OTM PUTS and CALLS to limit the max…
This is a strategy you use when you feel the markets will not rise or fall below a predetermined level within the upcoming week. Approximately 9 out of 10 times markets remain range bound and the other single time it breaks out or breaks down. This strategy is when you have a feeling that markets…
