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 First, volatility does not follow any historical reference point.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 …
Since option premiums derive their values from the movement of the underlying instrument, adjusting the market volatility is extremely essential when market uncertainty drives India Vix to levels of 72.Take for example today’s situation. Nifty opened 300 points gap down at …
India VIX is an index that reflects the volatility in the Indian markets. In today’s article we shall discuss how volatility can be used to understand the behaviour of option premiums. First let us understand how Vix functions. How India …
India’s benchmark Nifty witnessed a catastrophic fall of 4000 points from the recent high of 12418. In today’s session, Nifty Futures crashed to a low of 8299 in the first 20 minutes of trade. The unprecedented collapse in the past …