Archive for the ‘How-To’ Category

How to learn trading options?

This item was filled under [ FAQ, How-To, Knowledge ]

Where to Start in Options Trading This post is not related to SPREADs but it is my thoughts about learning that one needs to start properly in OPTIONS TRADING. It was in reply to following question – Quote: I want to learn options trading. Do we have to be well versed with the equity trading. […]

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How to hedge Short Futures Position using options ?

This item was filled under [ How-To, Option Strategies ]

In this post I am trying to answer a question asked by my trader friend who wants to capitalise of long term bearish view with Short Futures position, but want to explore how it can be hedged using options to safegaurd against and dead-cat bounce from the fall. Scenario: Let’s say I expect the markets […]

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Developing systematic approach to trade Options

This item was filled under [ How-To ]

Most of the time, new option trader gets lost in the maze of so many option strategies and find it difficult to select right strategy for correct market condition. Let me give you a framework for strategy selection 1) Decide your holding period of the trade – intraday, few days, weeks, till expiry etc 2) […]

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Understanding Option Chain on NSE Site

This item was filled under [ How-To, Knowledge ]

To trade in options, we need to have following information with us  a)    Underlying Security b)    Option Type – CALL or PUT c)     Contract Expiry d)    Strike price  Once you have all above information, you have unique identifier of the option contract that you can buy or sell in the market.  On NSE homepage, there […]

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How-to plan an options trade ?

This item was filled under [ FAQ, How-To ]

New options traders are always confused in planning the trade correctly and that leads to confusion at the time of exit. Once in a trade, their typical question is “what do I do now? Shall I take loss or book profit or let the trade run? “. My answer to them is with a question […]

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