In today’s article we shall talk about the beauty of trading mispriced options. We shall also showcase a live example of the same. To begin with, let us understand the concept of options mispricing. In order to understand this, we …
India’s benchmark Nifty future registered a high of 12012 today. Today was a good day to understand how ratio traders function. While most market participants were anticipating a buy breakout today. The institutional traders took advantage of the situation and …
India’s benchmark Nifty futures triggered a sharp upswing of 200 points today. Today’s up-move was a magnificent example of option mispricing. Although news headlines in the morning screamed “Asian shares jumped to a three-month peak as Wall Street hit all-time …
In our last article, we had discussed in detail the functions of the options Delta and Gamma. In today’s article we will learn how we can incorporate gamma and theta while trading options. The Theta Component At the onset, we …
One of the most frequently asked questions today is, what the best way to deal with market volatility? Although, high volatility should act as an opportunity for vanilla option traders, they are mostly challenged by the lack of understanding, how …
9 out of 10 derivative traders have heard about Option Greeks, but only a few are aware how these can be applied in real market. What is more important, most are not aware of the immense power of the option …
We are all aware of choppy markets. It’s the kind of market that doesn’t have a defined direction. The current Nifty September contract is a perfect example of a choppy market scenario. September contract opened at 11006 and plunged to …
There are multiple ways to deal with option pricing when major volatility expansion is triggered. The best way to deal with such scenarios is by plotting how options respond to changes in the underlying volatility and shifts in the time …
Most option traders focus on four primary questions. What is the market trend? Where should I enter the option trade? What is my target? What is the correct stop? At the onset we must understand why professional option traders are …
India’s benchmark Nifty futures tanked 150 points today. The index had zoomed up 485 points in the past two trading sessions and registered a high of 11133 yesterday. In today’s session, the institutional traders initiated profit booking around 11108. Market …