Stock options strategies examples nse

Stock options strategies examples nse

Author: Serge_new On: 04.07.2017

In the last few years, the retail trading community in India has really found a love for options. They are volatile, you can double your money in a day if you get it right and you can buy a truckload of contracts in comparison to futures which require more margin. Then why do most options traders lose money?

Because there is a flipside to volatility and leverage. Instead of designing a plan, many retail traders go for the jugular by taking a naked position by buying Out of the Money OTM Call and Put options hoping to make great returns. It can be, but to think of this approach as a great money making formula is the long run is wrong. The markets are dynamic and the outcomes of today may not necessarily give you indications of tomorrow.

Considering the risk in taking naked positions and hoping for things to pan out your way can be dangerous. One has to understand that option trading strategies are extremely flexible in a way that you can manage your risk most effectively.

Unlike trading in Nifty or stock futures, where the scope for risk management is based on stop losses, Options give you the choice to do a variety of different things to express your views on the stock market. There are strategies for every kind of market situation and you could possibly make profits in circumstances which you would have previously thought to be impossible. It will require you to have solid fundamental understanding of how options work and fluency in math.

stock options strategies examples nse

Most people lack either the knowledge or the inclination to sit and design their own option trading strategies.

We understand that it is a hard job and we decided to make it easy for you by building a complex tool which takes care of everything for you which can help you trade option strategies like a pro without having to know anything beyond your view on the stock market.

For retail traders, it was very difficult to get ready-made calculators until we developed Options Strategies Calculator.

Rajkamal stock options: LEARN ABOUT OPTIONS TRADING IN INDIA

This tool actually helps you choose strategies based on your market outlook. Something which used to take a long time can now be done in less than 2 minutes. But we recommend you use the preferences to filter out the unwanted ones and focus more on what makes sense according to your view on the stock market. You can choose strategies based on your outlook on the stock market.

Rather than just giving two choices of bullish or bearish, we have made it far more precise to help you make superior trading strategies.

Options Trading: Understanding Option Prices

You can choose from 6 different outlooks:. It basically covers all possible market scenarios so you can get the right kind of tailor made strategies. A leg is a component of the trading strategy. So every contract which is used in a trading strategy is called referred to as a leg.

It could be combined with other components to tailor make it to your needs. You can go up-to 4 legs in option strategies. Limited profits are not necessarily bad. It depends on how you manage risk. Most institutional traders are on the selling side of the trade as they target lower but surer returns.

There is a popular misconception about unlimited risk. It just depends on what strike price one is willing to buy or sell that makes all the difference. You can also segregate based on your loss tolerance too.

It is based on the same principles of profit potential. Lastly, you can select strategies based on whether you have a credit or debit. Our Options Strategies tools have 15 and 16 debit strategies. The wide variety available for option trading is incredibly useful. Once you have arrived at your chosen strategy, the rest becomes easy.

You can either follow the sequence that we have shown above or filter trading strategies using either of the multiple preferences given to arrive at the most optimal choice.

stock options strategies examples nse

Upon selecting any one, everything is explained and you can enter your preferred strike prices and price to get results and pay off graph.

This way, you can trade even the most complex strategies using our Option Strategies tool. If you want to learn about the strategy, you can click on the highlighted area as shown above.

There you will be able to get the theoretical explanation of the option strategy.

In this example, we have the Long Strangle strategy for Nifty. The input fields are already defined and you only need to select your preferred strike prices and enter the current market prices. Based on your inputs, you will get to know: The X axis shows the underlying price at the expiry. Now you can use this tool to trade 44 options strategies right away for FREE without having to study big text books written on them. If you have any questions or doubts, you can always ask us.

FYERS was started as a mission to enhance the terrain for traders and investors in India. I really like the fact that you have added these much Option Strategies to choose from. I checked the Strategies in your website, but I am facing a problem. How can I decide which Strategy to use? I am not able to make a proper decision on this. Can you guide me through the process?

YOUR SERVICE, CUSTOMER HANDLING,PROBLEM SOLVING.. EVERY THING ARE PERFECT. FYER WILL EMERGE AS A ROCKING STAR VERY SOON IN FUTURE. ALL THE TEAM MATE OF FYERS ARE HIGHLY TRAINED AND KNOWLEDGE PERSONS. Is there a video that shows how to go about it? Is there a way the tool could take some of the data IV etc.. Very useful tool for sure..

Fyers doing great stuff!

stock options strategies examples nse

Easy to use your tool on mobile app. I have a suggestion however, if you could in addition to predefined strategies also offer an option to customize the legs and also include the no of lots to each leg it will be helpful for those who like to adjust strategies and also perhaps hedge positions.

Also fyers has a great workplace choices, maybe later you could add one specifically for options trading with all the tools placed on one screen. You can choose which strategy to use based on your market view. The strategies are segregated based on several filters. Then depending on your other choices, your search keeps narrowing down. Try using it once and if you have any doubts, feel free to ask again. Prateek, use the filters. If you have more than 1 choice, then I recommend you read up about them and choose manually.

It would be helpful if you are more specific. Iron Condor is ideal if your market outlook is neutral. Hi Anony, Currently this tool is for manual simulation only.

Best Options Trading Brokers and Platform | Easy Comparison Tool

We shall come up with order integration soon. We shall also make videos and post them in the future. It does take time to implement. We are working on it and will have it very soon. I suggest you open an account with us for free and get started. Once we finish our existing development projects, that will be our next focus. Not yet Anup, but we will develop that functionality too. Right now we developing some interesting things which you will get to see soon.

We made it simple to avoid a lot of things which might actually confuse the users. Open An Account Refer A Friend. TRADING PLATFORMS Thematic Investing Fyers One Fyers Markets Fyers Web Trader Tool Box Mutual Funds Pricing About Us Brainstorm SERVICES CUSTOMER SUPPORT Fund Transfer Downloads Feedback Fyers Circulars FAQs Fyers Focus Contact Us SIGN IN WEB TRADER BACK OFFICE. The success in trading options strategies depend on: Let me show you how to use it: Step 1 — Choose your market outlook: You can choose from 6 different outlooks: Step 2 — Choose the number of legs: Step 6 — Project your future profits: How to use intuition to predict the stock market.

Unique Stockbroking franchise opportunity in India. Quantity Freeze Limits — What you need to know. David korah April 29, Prateek April 29, Chirag Arora May 11, I am confused with this! JAISANKAR E May 20, Shiva Trinadh July 21, Jai Shankar, Your review is highly motivating, we will maintain and put up our standards all the time.

Anony August 10, Dinesh Bhalla October 7, Huma Masood December 12, Tejas Khoday April 29, Tejas Khoday May 11, Tejas Khoday August 10, Tejas Khoday August 24, Not yet, but we take that as your suggestions.

Will work on it soon. Tejas Khoday October 10, Tejas Khoday October 18, Tejas Khoday December 12, Fyers One Fyers Markets Fyers Web Trader Tool Box Mutual Funds SiteMap. Downloads Fund Transfer FAQs. Quantity Freeze Limits — What you need to know March 29, Avoid paying excess STT on Options Expiry March 9, Book Review February 28, Kindly make sure you read the account opening documents as prescribed by SEBI. Issued in the interest of the investors. A client can also opt to write to NSE here.

Use it for FREE and give us your valuable feedback. Best Market Breadth indicator on an online trading platform. How to Use Stock Screener to Improve your Technical Analysis.

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