How to make money in nifty options trading.How to Multiply Your Money with Nifty Options Trading Strategy

Saturday, 21 August 2021

 

How to make money in nifty options trading.How to Turn Bank Nifty Weekly Options into a Regular Income-Driving Machine?

 
The best strategy is to sell a deep out of the money call and/or put options and buy an adjacent strike options. The chances of spot price hitting the deep out of the money strike level is less and even if it hits you have protection from the adjacent strike bought position and the profit from the other side of the strategy Call/Put. K views. Apr 28,  · You can do the intraday option trading in both the nifty and bank nifty. The process for the trading in the intraday option trading is similar as you do the trading in intraday option trading for any stock specific. By doing trading in Nifty and Bank Nifty gives you benefit to get the benefits of the growth from the list that is consist in each of the indexes as index represents the total performance of Estimated Reading Time: 7 mins. Nov 29,  · Now comes the funny part, only one of these two trading factions make money in trading options. And you guessed it right. The proprietary trading desks make money in options trading on a more consistent basis as compared to retails traders. The reason is simple: They sell options more than they buy them! Welcome to the world of option sellingEstimated Reading Time: 6 mins.

You Should Read This:.How to earn money by trading through Bank Nifty – Quora

 
 
Jun 29,  · To make a success in options trading, restrict yourself with first researching the price movement of the underlying (BankNifty) to predict where it will head towards within your stipulated time then go on find and enter the right option contract with justified reason of why you are buying or selling ted Reading Time: 15 mins. Apr 28,  · You can do the intraday option trading in both the nifty and bank nifty. The process for the trading in the intraday option trading is similar as you do the trading in intraday option trading for any stock specific. By doing trading in Nifty and Bank Nifty gives you benefit to get the benefits of the growth from the list that is consist in each of the indexes as index represents the total performance of Estimated Reading Time: 7 mins. Sell at a price higher than you bought for. Whether you buy first or sell later or sell first buy later (short selling), the above rule applies. No other method of making money has been invented yet as far as trading is concerned. For selling at a higher price you need to be right in your trade.
 

 

How to make money in nifty options trading.How to earn money by trading options of NIFTY: Mini Guide – Trader’s Pit

 
Apr 28,  · You can do the intraday option trading in both the nifty and bank nifty. The process for the trading in the intraday option trading is similar as you do the trading in intraday option trading for any stock specific. By doing trading in Nifty and Bank Nifty gives you benefit to get the benefits of the growth from the list that is consist in each of the indexes as index represents the total performance of Estimated Reading Time: 7 mins. Sell at a price higher than you bought for. Whether you buy first or sell later or sell first buy later (short selling), the above rule applies. No other method of making money has been invented yet as far as trading is concerned. For selling at a higher price you need to be right in your trade. The best strategy is to sell a deep out of the money call and/or put options and buy an adjacent strike options. The chances of spot price hitting the deep out of the money strike level is less and even if it hits you have protection from the adjacent strike bought position and the profit from the other side of the strategy Call/Put. K views.
 
 
also search:
how to get bitcoin from blockchain to bank account
how to buy coins like bitcoin
how to use steam coupons
how to find bitcoin address coinbase
how to mine bitcoins pc
 
 
related:

Nifty Options Trading Strategy on How to Multiply Your Trading Capital

Turn Bank Nifty Weekly Options into a Regular Income-Driving Machine

also search:
how to trade ethereum for bitcoin
how to download videos from any site on android
how to download spotify songs to mp3 android
how to transfer bitcoin from coinbase to bitcoin wallet
how to find out if someone is on any dating sites

By Rohit Malik. November 29, The price of an option is based upon the price of a security, time to expiry of option and volatility in the security. There are various guides and books which describe the concept of pricing of options in more detailed manner.

Options as instruments came into the picture to provide a way to big traders as the hedge against their portfolio risk. When there is big enough trade position in a certain stock or index stocks, then to protect that position there are limited options:. In reality, this reason of buying options constitutes little part of the total trading volume of options on an exchange mainly NSE. So who makes the majority portion of options trading volume on daily basis. And you guessed it right.

The proprietary trading desks make money in options trading on a more consistent basis as compared to retails traders. Which means if you are bullish in market outlook, then rather then buying a call option , you actually sell a put option. When you buy an option, you only pay a premium.

Whereas, the potential loss is unlimited if the price of that option keeps going up. Then why will that party take such risky trade for limited profit!? Because, statistically, there are higher chances of your option losing its value faster, due to the market being in range, as compared to a meteoric rise in price which you expected when you bought the option.

There are two components in the price of every option: inherent value and time value. The inherent value of an option is the value with which the price of underlying security is above, from the strike price of an option. Then in this scenario, the inherent value of this option is:. And also it is the in-the-money option: Read more. This, brings up the next question? In simplest words, each option is valid till its expiry date. The time value in options is dependent on how time is left in expiry.

Further in future, the expiry of an option is, higher is the time value in the price of that option. Which means, time value in the same strike price based option is higher with expiry in next cycle month as compared to one this month. You can read more about this concept here. As I just mentioned, time value in the price of an option is based on time to expiry of that option. Which means, when the time of expiry comes near, the time value decreases.

Here comes the beautiful part of the market being in range some traders like to call this stage as consolidation. Rest of the time, it stays in a range. Which means, every option at the boundaries of the range has higher chances of losing time value each month. This is the method used by most of the option writers. Find the range read how to find range , sell options with a strike price at that range, take the premium and earn money. I would like to read your opinion about option trading.

Do leave a comment about it. A yogi who like Finance and Technology. I have been in Indian Stock market for over 12 years now as financial analyst, portfolio manager, trader. Your email address will not be published. Required fields are marked. I read this article thoroughly it explained everything, i am also experienced in stock market from to around 18 years now i like to invest my experience in this market.

Inherent value Time Value Time decay Things to be careful about:. Share 0. Tweet 0. About the author. Rohit Malik. Leave a Reply Cancel reply. Post Comment. Well explained…. I need your guidance to trade in nifty options….

also search:
how to know you have an anxiety disorder


Sorry, the comment form is closed at this time.