stephin david
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Tips for option players

Stephin David at 07:52 AM - Jul 20, 2016 ( ) Views: 1,157

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USING IMPLIED VOLATILITY IN TRADING OPTIONS HI FRIENDS,WHAT IS IMPLIED VOLATILITY ?? IT GIVES A PROBABLE VIEW OF THE UNDERLYING ASSEST MOVES IN FUTURE. IT DOES NOT INDICATE ANY DIRECTION. HIGH IV INDICATES HIGHER PRICE FLUCTUATIONS AND LESS IV INDICATES LESSER PRICE FLUCTUATIONS. HOW TO USE IT ?? MOST OPTION TRADERS DO NOT DISCOUNT THE USE OF IV WHILE TRADING OPTIONS BE IT BUYING OR SELLING. FOR BUYERS: WHEN IV IS HIGH, IT INDICATES OPTIONS ARE PRICED AT A HIGHER LEVEL OR THEY ARE COSTLY. SUCH THING HAPPENS BEFORE VOLATILE EVENTS. SO , ASSUME U BOUGHT CALLS AT HIGH IV AND MKT WENT DOWN . U CAN IMAGINE HOW MUCH LOSS U MADE . SO , WHILE BUYING OPTIONS MAKE SURE UR IV IS LIKELY TO INCREASE IN YOUR SIDE TO BENEFIT YOU. FOR SELLERS : DONT TRY TO SELL OPTIONS WHEN IV IS LIKELY TO INCREASE. OPTION SELLING IS BETTER AT HIGH IV, BUT THE CONDITION IS THAT ONCE U SELL , UR IV SHOULD TEND TO DECREASE. SO TRY TO SELL OPTIONS OPPOSITE OF TREND WITH DECREASING IV. GENERALLY , AFTER VOLATILE EVENT IS OVER. NOTE: ALWAYS REMEMBER, PRICE ACTION IS VERY IMP IN TRADING. U NEED TO USE IV IN ADDITION TO PRICE ACTION. FRIENDS I AM PROVIDING MY OWN VIEWS. U PLZ TRADE AS PER UR OWN VIEWS. DONíT BLINDLY FOLLOW ME . generally some option traders use atm iv to determine the volatility of the stock movement main thing in trading options is trend if u trade the correct trend , no need for other things iv rises abruptly near result sessions, before budget, elections, rbi policy and any global panic events U CAN LOOK TO SELL OPTIONS AS LOW IV IS FAVOURING YOU THIS MONTH LOOK AT ATM CALLS IV 10 -13 RANGE ITS STILL LOW IV REAMINS LOW ONLY EXPECT IN THE ABOVE MENTIONED CASES FOCUS ON CHART AND TREND TO BUY OPTIONS SUPPOSE IF ANY GLOBAL PANIC IS GOING TO HAPPEN THEN PEOPLE WILL START BUYING PUTS MORE AND MORE THIS INCREASES IV A LOT AND NOW IF REALLY PANIC HAPPENS THEN INCREASE IN IV WILL BENEFIT U IN PUT SIDE IV DOES NOT INDICATE ANY DIRECTIONAL MOVE NIFTY PUTS ARE TRADING WITH A LOW DELTA TO TRADE OPPOSITE OF THE MAJOR TREND , BETTER IS FUTURE OPTIONS IS A GAME OF POSITION MANAGEMENT MOSTLY OPTION SELLERS WIN BCOZ NIFTY IS NOT ALWAYS TRENDING ALSO BUYERS BOOK SMALL PROFITS AND WAIT FOR MORE LOSSES ALSO OPTIONS ARE MOSTLY BOUGHT ON HOPE ALSO PEOPLE WANT TO BE RICH IN A WEEK TRADING WITH 10,000 AND HOW CAN U MAKE 25000-50000 PER MONTH BY BUYING OPTIONS PEOPLE DONT RUN BEHIND PRACTICAL PROFITS ONLY IDEAL PROFITS


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Stephin David at 04:17 PM - Jul 20, 2016 ( )
WHENEVER UR ONE SIDE BUY OPTION IS IN PANIC. EF CALL BUY SIDE THEN IMMEDIATELY SELL I STRIKE ABOVE OTM HERE U CONVERT IT INTO DEBIT SPREAD AND U CAN MINIMIZE UR LOSS OR RECOVER ALSO FOR PUT BUY, SELL I STRIKE BELOW PE THIS IS HOW OPTIONS ARE HANDLED BY POSITION MANAGEMENT

Stephin David at 04:02 PM - Jul 20, 2016 ( )
NIFTY IS STUCK IN 8480 TO 8600 NOW IT IS OSCILLATED BY WRITERS TO MINIMIZE PREMIUM WHNEVER SPOT MOVES ABRUPTLY , IT TAKES A PAUSE THAT PAUSE DOES NOT INDICATE BEARISH VIEW BETTER IS TO TRADE FUTURES NOT OPTIONS NOW THE MORE THE SIDEWAYS , MORE THETA EFFECT AND LESS DELTA EFFECT TMRW BNF WEEKLY EXPIRY PLUS TWO BANKS RESULT BNF WILL BE VOLATILE TMRW

Shankar Peri at 09:02 AM - Jul 20, 2016 ( )

THANKS 

Stephin David at 08:03 AM - Jul 20, 2016 ( )
PLZ READ THE BELOW POINTS. 1. NEVER BUY OPTIONS AT THE START OF EVERY MONTH WITHOUT KNOWING THE DAILY CHART TREND OR UR TIME FRAME. 2. TRADE NEAR OTM OPTIONS IN FIRST WEEK OF MONTH ONLY AFTER PROPER SIGNALS. THIS IS BECAUSE U WILL TRADE HIGH DELTA AND LOW THETA. PROFIT WILL BE MORE WITH SPOT MOVEMENT. 3. TRADE ATM OPTIONS IN SECOND WEEK ONLY AFTER PROPER SIGNALS. U CAN EXIT IF UR PREMIUM MOVES DOUBLE UR SL. RISKY TRADERS CAN WAIT AS PER THEIR WISH WITH TRAILING SL. 4. IN THIRD WEEK AND FOURTH WEEK, TRADE ITM OPTIONS. BCOZ DELTA TENDS TO DECREASE AND THETA TENDS TO INCREASE. EXIT WHEN UR PREMIUM INCREASE A LITTLE MORE THAN UR SL MAY BE 1 TO 1.5 TIMES. RISKY TRADERS CAN WAIT AS PER THEIR WISH WITH TRAILING SL. 5. DONT BUY OPTIONS IN THE RETRACEMENT OF THE ONGOING TREND. 6. IF UNSURE OF THE TREND, TRADE WITH FEW LOTS AND WHEN CLEAR ADD MORE LOTS. 7.WHILE TRADING WITH MORE LOTS, BOOK PARTIAL PROFITS AT NEAR TARGETS AND HOLD LESS TILL FURTHER TARGETS OR WITH TRAILING SL. 8. DON,T MIX INTRADAY TRADING WITH DAILY TIME FRAME. INTRADAY SL IS DIFFERENT AS COMPARED TO DAILY SL.

Stephin David at 08:00 AM - Jul 20, 2016 ( )
THANKS EVERYBODY . I HOPE MY KNOWLEDGE WILL HELP U . MORE WILL COME

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