- 10 Options Strategies to Know - Investopedia
- Options Trading Strategies For Indian Stock Markets
- No loss option strategy – Dalalstreetwinners™
- Best Broker For Options Trading In India - Stocks Fetcher
The biggest argument in favor of option trading is the fact that when employed effectively, option trading strategies will help the investor make risk free profits.
10 Options Strategies to Know - Investopedia
Nevertheless, it is important to understand how these strategies work. Keep in mind that the strategies below are not exhaustive and there are endless possibilities of making money in the stock markets by employing a combination of strategies in the cash, futures and options markets, by entering into simultaneous trades. For this reason, derivatives markets around the world have always attracted the brightest and sharpest minds.
Options Trading Strategies For Indian Stock Markets
The first is that by trading a naked put I receive twice as much premium ($755 / contract when selling a naked put vs. $655 / contract when selling a vertical credit spread).
No loss option strategy – Dalalstreetwinners™
In the example above, the maximum loss is $65 per share less the $6 credit, so for every contract you sell, your maximum loss is $955 and your maximum gain is $655. If, at the end of six weeks, Facebook is trading above $685, you will make $655 per contract sold.
Best Broker For Options Trading In India - Stocks Fetcher
If you have any queries feel free to ask it in the comments section below. If you know about any other broker that could be the best broker for options trading in India, do comment about it and it will surely be considered.
However, while option strategies are easy to understand, they have their own disadvantages. Most importantly, unlike buying in the cash market (. equity segment) where you can hold on to the underlying purchase for as long as you would like, in case of F& O market, you are time bound. In other words, you must exit your trades at a certain time in future, and you may be forced to incur a loss.
However, late 7569 and in 7575, I have primarily begun selling spreads. The reason is that I believe that the enhanced capital efficiency, plus the tail-risk protection, outweighs the additional premium and trade management advantages.
With Sensibull, you can trade with self-defined risks.
Pre-determine the amount of risk you are willing to take and be in control. Isn’t that peace of mind?