Your Options Guide

If you have ever read about options or listened to any of the option traders you must have come across the term "option spreads" or " credit spreads". They are a very popular option trading strategy along with covered calls for all new traders. It is relatively easier to understand and they are safe for newer traders since the risk is defined at trade entry. So what is a credit spread? It's essentially selling a call or put option that is closer to the price of the security and buys a call or put option respectively at a more distant price when compared to the actual price of the underlying. Depending on whether you do call options for your spread or put options, you will have a call credit spread or put credit spread. Let's take a looks at an example. Let's say Apple is trading at 200$. Then you can sell a 210 call option and buy a 215 call option to create a call credit spread. Similarly, you can also sell a 190 put option and buy a 185 put option...

Howdy! Before we start analyzing the technical chart of Nifty, let me get the disclaimer out of the way Options trading involve risk:  you may lose more than what you put on the trade. All the trades and commentary on this blog is for informational purposes only. Please do your due diligence and consult a financial advisor before making any trades or investments. The financial advice and opinion in this blog are for educational purposes only. We are not responsible for any loss financial or otherwise. With that out of the way lets look at Nifty as of 15th March 2019 source: tradingview.com The market is on a roll literally over the past few weeks! We broke the 11000 mark and is now hovering around 11500.  The upward momentum which started with the US fed decision to pause the rate hike, slowly trickled into global markets and we broke above the long term resistance at 11000. Ever since we have been in a constant uptrend. Now, given the strong upward ...

Hi there! First of all, thank you for being here! Since you are reading my blog right now, I assume that you are interested in options trading, or at least you want to check out what it is all about and how you could profit from the financial markets trading options. Great! I`m on the same boat as you are. This is a blog where I am trying to capture my thoughts on the market and do some "paper trading" or "simulated trading" hopefully every month for about a year. This is sort of a personal project. Most importantly what I am planning to achieve is to gain a concrete methodology and mindset that helps me achieve consistency as an options trader. I`m sure it won't be easy as it sounds - but hey nothing in life is! As a precursor, I wanted to point out that, I`ll be focusing on the Indian markets. However, the options trading methodology and the process can be applied to any market. Feel free to join me in analyzing the trades and you will be able to see ...