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 =…
There are 2 specific advantages option trading has over stock trading. The ability to make money in 3 ways When stock goes up When stock goes down When stock stays flat When you trade/invest in stocks you can only make money if the stock prices go up. There is no way you can make money…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “Momentum is still something Nifty50 was not able to find so far, mainly because follow-up buying or selling was just not there.” 4mts chart Nifty has become really unpredictable and is taking all the professional traders on a wild ride. We opened Gap-down, and the 3rd candle went…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “Momentum is a great thing in technical analysis, the trend starts only when the momentum is in favor because if things stay as it is — markets will recover.” 4mts chart Whatever trap was set up by the Bears, it was busted open today with the gap-up. We opened 167…
Nifty Analysis — Stance Bearish⬇️ Recap from yesterday: “The only thing that could override this W pattern is the lower high, lower low formation. LH, LL will take precedence over a short-duration pattern all the time.“ 4mts chart I can say With 70% confidence that Nifty50’s Lower Low, Lower High (LL, LH) wave formation has taken precedence…
Nifty Analysis — Stance Bearish⬇️ Recap from yesterday: “If you look at the higher time frame, today’s price moves might be between 38.2 to 50% Fibonacci retracement levels and what might have formed could be a lower high.” 4mts chart Nifty was not able to sustain the gains yesterday, within the opening 15 minutes itself it breached…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “From the recent top of 48161, BN is falling, but yet to make a lower low or lower high. Unless the 2nd leg starts, we wouldn’t know with clarity what it has in mind. To go bearish, we need to fall below 46176 another 800pts away.” 4mts chart…
Volatility is the probability that a stock swings up and down from its base price. If there are 2 stocks, stockA which swings 5% every day, and then stockB which swings 2% every day — then stockA is more volatile than stockB. Higher swings mean higher uncertainty and hence the options premium will be higher for stockA…
Nifty Analysis — Stance Bearish⬇️ Recap from yesterday: “One thing is sure, the sudden price moves we are seeing right now are quite indicative of a massive shift in fundamentals. Technical Analysis cannot detect the directional impact this early, but it would be prudent to keep an eye out for any possible clues.” 4mts chart We got…
Nifty Analysis — Stance Bullish ⬆️ Recap from yesterday: “If Nifty50 has to change its character, the price has to fall below 22295 and then below 22051 wherein the higher low will get violated.” 4mts chart I was stunned by the Nifty50 and BankNifty price moves today. We started the day in line and then the 09.31…
