Category Archives: Option Strategies

Mistakes to avoid when writing/shorting Options

By | November 21, 2015 10:37 am

In Continuation with Previous Post  Todays post we will discuss Mistakes to avoid when writing/shorting Options Introduction Options Shorting/Writing Why Retail Traders “Buy Options” and Professional Trader “Write Options” Trading way above your Limit  Over-positioning is the biggest mistake new option sellers make. This is how it works: New traders sell a few options, see… Read More »

Introduction Options Shorting/Writing

By | November 7, 2015 11:12 am

In Continuation with Previous Article  Why Retail Traders “Buy Options” and Professional Trader “Write Options” What is Option Writing Option Writing means Instead of Buying Options (Buying Call or Put), trader is shorting them, Just Like we short Futures, Option can also be shorted. Universal Rule of Market is Every Buyer will have a Seller… Read More »

Bull Ratio Spread Option Strategy

By | January 10, 2015 11:48 am

Bull Ratio Spread: The Bull Ratio Spread could be called as a variation of the Bull Call Spread. Here we expect the stock to move sideways to slightly higher. The Position is created by purchasing a call (preferably At-the-money or slightly Out-of-the-money) and selling more than one calls at a higher strike price in a… Read More »

Why do options trade at lesser than theoretical value on the last day of expiry?

By | June 27, 2013 1:28 pm

Today is Nifty expiry and many traders will indulge in Option trading to make some quick buck if they are on right side of trade. I have seen trader taking position in Options that trades less them their theoretical value, thinking price will correct End of day and they will make profits but in reality… Read More »

Option Trading Strategy for Budget Day 2013

By | February 27, 2013 1:52 pm

General Budget will be presented by Finance Minister P Chindbram on 28 Feb.Budget is one of the most awaited events from stock market perceptive.We see Nifty trading in wide range of almost 150+ points and volatile moves will be seen. As most of retail investor will prefer trading the Option Route to trade ( They… Read More »

Nifty Future Trading levels for 28 Jan

By | January 27, 2013 10:53 pm

1. FIIs sold 9586 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 312.98 cores with net Open Interest increasing by 24218 contracts. 2. As CNX Nifty Future was up by 53  points with Open Interest in Index Futures increasing by 24218 so FIIs created fresh long  in Nifty and Bank Nifty.… Read More »