Most option traders are eager to trade during or before an event. This is a common phenomenon because, option premiums expand rapidly during events and the ROI is extremely high. However you must be spot on with option valuation and …
Volatility arbitrage is a simple yet powerful option trading model. Imagine you are an option buyer and you had bought the 11050 Call @ Rs. 40, when the market was around 10800. Thereafter, the market moved up to 11100 in …
If you are a Bank Nifty options trader, you are certainly aware of what volatility is. However, the moment someone asks you to apply the same concept and trade Bank Nifty options, you are lost. In today’s article we shall …
If you have been a trader for 6 months, you must have heard about contra trades. In today’s research report we shall talk about “Contrarian Option Trading”(COT). COT is a powerful Alternative Investment Technique. This method is sleek and is …
While trading Bank Nifty options traders generally ask three questions, “What is the trend”?, “What strike should I buy”? and “Where should I execute the trade?”. Option traders know that Bank Nifty undergoes huge swings and big money can be …
High volatility in Bank Nifty often causes irregularities in option pricing. This is perceived as a hurdle by most option buyers. However, if you look closely you will notice Bank Nifty creates more opportunities for option buyers who ignore the …
In a surprising turn of events, India Vix has witnessed a jaw dropping plunge from its recent high of 83 to the current low of 49 in matter of days. The sharp fall in India vix has landed a fatal …
When an option buyer enters the market, he simply wants to identify the trend. In most cases, there are two reason behind this thought process. First, the option buyer want to determine whether he should buy a call or a …
It is a common practice amongst option traders to depend on charts to determine the trend and then buy or sell options. However, we know how difficult this technique is in determining the strike and then identifying the entry or …
Of all the different methods that are used to evaluate the fair value of an option premium, neutralizing the volatility premium provides the strongest edge. The obvious question is why? First, volatility does not follow any historical reference point. The …