Nifty index options trading strategies

Set target as double of your buy price, stop loss half of your buy price.


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So if you have Rs. If you are unable to find any decent pullbacks in nifty future, then you can always look at its stocks. The golden rule of options trading lies in trading in the direction of a medium-term trend if you are buying, or look to go against the trend if you are writing options. Also, avoid overtrading, as many discounted brokers offer less brokerage.

Bhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course.

Options Trading - Definition, Types and Strategies

He is having more than 10 years of experience in trading, had placed his first order on 19 June with IndiaInfoline. This nifty price is of which year friend? Update it. Nifty touched now railing at this is of which year? Somashekar — XX [email protected].

Create fresh short positions if the index breaches levels [on the downside]. Stop-loss should be used strictly as volatility is on the top. Current expiry one lot. We suggest doing a ratio spread for Feb 25 expiry.

1. Strategy #1

Buy 1 lot of CE and sell 2 lots of CE Profit will peak at Nifty reaching The position will lose money if Nifty moves above For those who want to trade the budget day, selling calls and puts at least three strikes out of the money for Weekly expiry should do the trick. Ideally, the trade should be taken around There is no guarantee how long the Budget speech will last.

The last one by the FM was a marathon. Remember that Budget day is accompanied by huge volatility and it is just one day in a year.

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Markets will remain open for years to come. Not everyone has the stomach to absorb the volatility that is there on the budget day.

Enter the trade of ur choice. Book small profit. Wait ur turn. Calm ur emotions. Repeat the strategy. Caution adviced with overtrading. Probability is the mantra on this method. I treat trading as just the game of numbers. Time is money in Options. So, as a f irst step divide the timeline into short, medium, long term. Next, study the interested security index or stock or usdinr.

Based on the projected analysis of a security, decide to go long side or short side and the timeline that the security might fall into as mentioned above. Options and Futures are sure way to loose money as these instruments are like gambling where in you place your bet.

Step By Step Guide On Options Trading in India 2021: Indicators, Strategies

Be aware of market conditions. Have a basic understanding of factors that effect the price of an option. If you are a buyer, time is always against you. Then there is also an impact of volatility.

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The volatility is never realised. So, buyer always pays this premium. Keep an eye on VIX. If IV is high, then the risk of ending in a loss even though you predict the direction well is higher. Since time and volatility are against you.