Skip to main content

Different Outlook To Intraday Trading With Nifty Options

Every trader need to have knowledge about trading before they start trading, and here is few points for the traders that will definitely change the outlook to intraday trading.
1.Liquidity: The volumes of the At the Money Strike call or Put are individually equal to the NIFTY Futures Volumes. The combined volumes in the At the Money Call and Put are more than the NIFTY Futures.

2.Options are the only Instruments which move more than the NIFTY in terms of percentage moves.

3.Time DecayOptions are prone to Time decay which is commonly known as the Theta effect.

4.Effects of other Greeks: Implied Volatility tends to increase in range Breakouts and subsides when NIFTY gets in a rangebound move. Predicting the rise or decline in Implied Volatility is a challenging task for traders and needless to say successful predictions carry huge rewards.

5.Specialized skills:
Trading Options thus is a very specialized field where lay traders without any knowledge of the interactions of the key greeks can get caught on the wrong side inspite of the right view on the NIFTY. Example many traders come to me with the question I bought the call and NIFTY moved up some 100 points but the Call option which I bought hardly moved up by 30-40 points.

Here the Trader had a right view on the NIFTY but failed to factor in the effect of the Implied Volatility, Theta etc and ended up making less money inspite of a correct view. Alternatively the Trader would have made better returns by selling some Near the Money PUTS. The strategies keep changing with the views and the above is just a theoretical example.
Visit Us : www.technotrades.biz
Contact Us : 09958406102

Comments

Popular posts from this blog

STOCK MARKETS AT A GLANCE 14 AUG

Market at a Glance The Indian equity market is likely to open soft today tracking positive Asian markets. Meanwhile, the investors are keeping an eye over the monthly inflation data for July to be released later in the day. The ease in the headline inflation would help the RBI ease key policy rates. Further, the investors will keep a close eye over the release of quarterly numbers, that will further direct the trend of the market. Meanwhile, the Asian markets are trading steadily as investors are awaiting a raft of economic data from Europe and the US later in the day. Japan's Nikkei edged higher, on low volumes due to the holiday season, with the exporters gaining strength as the dollar strengthened against the yen in the New York. In SGX Nifty, Aug'12 contract last traded at 5,372, up by 1.00 point from previous settlement.

Free Downloads of Best and most accurate MT4 strategies and Indicators| MT4 ROBOT EA

http://mediajx.com/story7112431/the-2-minute-rule-for-robot-forex-funciona http://bookmark-dofollow.com/story6027470/about-forex-auto-trading-robot-free-download http://bookmark-template.com/story6030122/5-tips-about-scalping-robot-mt4-you-can-use-today http://prbookmarkingwebsites.com/story4171399/forex-wiki-no-further-a-mystery http://socialmediainuk.com/story4607483/the-best-side-of-metatrader-4-free-download http://dirstop.com/story4894182/the-fact-about-expert-advisor-programming-for-metatrader-4-that-no-one-is-suggesting http://opensocialfactory.com/story3739470/facts-about-metatrader-4-indicators-revealed http://ztndz.com/story6395566/the-definitive-guide-to-forex-robot-gratis http://gorillasocialwork.com/story4899066/forex-ea-advisor-options http://socialrus.com/story4358261/the-single-best-strategy-to-use-for-forex-online http://socialmediastore.net/story4742935/the-single-best-strategy-to-use-for-forex-online http://socialnetworkadsinfo.com/story4765280/not-known-f...

COMMODITY UPDATES 7 AUG

August 7, 2012 News Highlights:  The U.S. unemployment rate unexpectedly ticked up to 8.3 per cent, from 8.2 per cent in the preceding month, fuelling expectations for another round of quantitative easing from the Federal Reserve and in turn boosted gold prices.  A weaker U.S. dollar also sent the gold, copper and crude oil prices higher as it makes the commodities cheaper for the holders in other currency.  The European Central Bank’s bond buying program lifted hopes for a debt crisis solution which improved demand prospects for copper, crude oil and gold.  China's central bank's pledged to intensify fine-tuning of monetary policy in the second half of this year and to improve credit policy to bolster the real economy. The encouraging comments from China, world’s top consumer of metals boosted expectations of a recovery in demand outlook of cooper. Gold Intraday Chart Crude oil intraday chart TECHNICAL ANALYSIS SOFTWARE intraday trading systems