Put Option

Through this explainer, Moneycontrol tries to make sense of what is happening out there in the derivatives market

F&O expiry week strategy: Deploy a protective hedge via Nifty Bear Put Spread

Bear Put spread is a moderately bearish strategy. The strategy is built by Buying a Put close to the current market price of the underlying and Selling the same expiry Put but of a strike lower than the Put bought.

'Can go slightly risk-averse; deploy Bank Nifty Modified Call Butterfly Spread'

Modified Call Butterfly is a 4-legged strategy where 1 lot of Call close to current underlying level is bought against that 2 lots of higher strike calls.

'Keep trades limited and protected amid COVID-19; deploy Nifty Modified Put Butterfly spread'

Considering the unpredictability of the pandemic, it makes sense to keep the trades limited and protected. Hence, Modified Butterfly on monthly series options is advised.

Trading expensive options amid COVID-19 uncertainties - here’s what you need to know

The Back ratios are typically known for their pro-volatility characteristics. Here, we have a forecast that we could have a big move in a day or two.

Nifty down over 7% in a week: Time to go contra? Here are a few strategies

The best possible solution to go contra is to have a synthetic call in a place where one goes long on futures and buys a Put of a strike slightly lower than the current market price.

'Investors should hedge Nifty positions by deploying Modified Put Butterfly'

Modified Put Butterfly is a 4-legged strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike.

How to trade cheaper options? You can consider these 3 modifications while trading

Higher premiums are attributed to higher implied volatility and lower premiums are attributed to lower implied volatility.

Nifty closed above 11,000-11,050: Is it a breakout or another gyration?

Situations like these where there is strong consensus seem to have been built against the range breakouts, trading against the tide for that minor possibility of a very big move becomes very difficult

A morning walk down Dalal Street | Focus on stock specific opportunities with stop loss placed below 10,733

Traders are advised to remain focussed on stock specific opportunities with a market stop placed below 10,733 levels on closing basis.

Learn how to profit from an oscillating market strategy

It is always profitable to know this kind of market neutral strategies as well, as one is capable of trading other than just unidirectional moves

A morning walk down Dalal Street | Break below crucial support at 10600 would extend fall further towards 10500

It is time to remain on sidelines and wait for a breakout above 10950 to go long and a breakdown below 10600 to go short on the index.

Early options data suggests traders do not expect market to go up until elections

Put options open interest is much higher than those on the call side suggesting a downward bias in the market.

Difficult for Nifty to cross 11K, deploy low risk ‘Bear Put Spread': Shubham Agarwal

During the week, the Nifty made a low of 10,536 but recovered swiftly to come near the vicinity of its vital highest Call strike of 11,000

Safety first while trading! Cost of hedging wouldn’t go beyond 3-4% of your position

Most of the times the cost of hedging wouldn’t go beyond 3-4% even if the hedge is kept for a good 20+ sessions. I have always found prudence in choosing the strike close to the current market price.

A morning walk down Dalal Street | PSU banks in focus after recap plan announcement; 3 stocks to bet on

Technically, the momentum is strongly favouring the bulls and traders are advised to buy a fresh breakout above 10990 kind of levels.

Technical View: Nifty forms bullish candle for fifth consecutive day; wait for a breakout above 10990

The Nifty also managed to hold on to its crucial support placed at 10,900-10,950, which is a positive sign for the bulls.

Ahead of US Fed meet, FIIs pull out $600 million from emerging markets

FIIs paused in their buying across key EMs. Outflows around $100 million were seen from Malaysia, South Korea, and Thailand. Taiwan and India saw outflows of almost $500 million each.

Technical View: Nifty forms a bearish candle; 10,929 crucial for bulls

On the options front, maximum Put OI is placed at 10,000 followed by 10,200 strikes while maximum Call OI is placed at 11,000 followed by 10,900 strikes.

How option writers had an easy ride in February 2018

The month of February 2018 was a very interesting month for trading options.

Trade Setup for Friday: Top 10 things you should know before Opening Bell

The Nifty on expected lines bounced back from its crucial support level of 13-days moving average to make a dash at 9100 level. Traders who are holding long positions should continue to hold them as long as Nifty trade above the gap support area of 9,060-8,975.

Trade Setup for Monday: Top 10 things you should know before Opening Bell

The Nifty saw a breakout on Friday but profit booking gripped markets which pulled the index towards its crucial support level of 9,160. According to Pivot charts, the key support level for Nifty is placed at 9132, followed by 9104, and 9,061.

How to hedge your stock portfolio?

It is not necessary and financially feasible for an investor to carry a hedge at all points of time. But normally a crisis or a fall leaves enough tell-tale signs.

How to hedge your investments in stocks using derivatives

Using futures and options you can limit your risks associated with investments in stocks.

Planning to trade in options? Start with these concepts

If you know these concepts you can trade better in options.