HOW TO TRADE ON OPTIONS EXPIRY WEEK

Many People are worrying about options expiry week that is last week of the month.
generally last Thursday is OPTIONS expiry date.The truth behind worry is high volatility in
the options premium.The difference between lower circuits and upper circuit is unbelievable
some times it should be 1000%. The perfect trader always catch the timing and earn more
from this week.every one know that all OTM calls must be zero in this week,so find the low
volatility stocks and sell their OTM calls and buy them @0.05 .it's free money.

best trading systems for Nifty and BankNifty

Trading Systems are based on Indicators,these are indicating us about Nifty and BankNifty trends and open Intrest, so traders will find trend easily...
EMA AND RSI BASED TRADING SYSTEMS ARE PERFECT FOR finding the trend.

TOP SECRETS OF OPTIONS TRADING IN INDIAN STOCK MARKET

BE PREPARE PSYCHOLOGICALLY WHILE DOING OPTIONS TRADING.

1.SELECT THE CONTRACT WITH PREDEFINED ENTRY AND EXITS.

Ex: If you want trade 1 lot 5000put  July contract be prepare entry is 54 and exit 60 and stop loss is 50

     that's it

   

     ONCE YOU FIX THE ENTRY AND EXIT LEVELS STICK TO YOUR DECISION.

2. ACCEPT LOSSES.

    

  Nobody is ready to accept their mistakes in this world. due to this reason most of the traders 

 loose their hard earned money in money market.

TRUST YOURSELF HONESTLY AT THE SAME TIME ACCEPT YOUR MISTAKES 

(LOSSES)HONESTLY.IT SAVES YOUR MONEY A LOT.

3.YOU CAN LOOSE ALL YOUR MONEY.

     Yes even single mistake enough to vanish your money in options trading.

     

     News based or experts tips based trades are very dangerous.

     

    YES IT HAPPENS IF YOU DO NOT PUT STOP LOSS CALLED BLIND TRADING.

     

    PUT STOP LOSS TO PROTECT YOUR CAPITAL AND TRIM YOUR LOSSES IS 

    

    THE TOP SECRET.

4. DO NOT FOLLOW EXPERTS TIPS.

     

    Now A days it become a fashion to having website and starting stock market tips business.

     NOTE: MOST OF THE EXPERTS WHO EXPRESS THEIR VIEWS IN TV OR WEB

                  

                  MEDIA THEY SAID THEY DO NOT HAVE PERSONAL POSITIONS OF THEIR      

                  TIPS BUT THEY RECOMMEND TO THEIR CLIENTS. 

5. LITTLE KNOWLEDGE IS MORE DANGEROUS.

     Yes start trading after learning essential knowledge on options trading.

       other wise your boat will sink in middle of the sea.

      LEARN LIKE A KID EARN LIKE A CHAMP.

6. LEARNING SOURCES FOR OPTIONS TRADING IN INDIAN STOCK MARKET.

NSE OPTIONS CHAIN

OPTIONS TRADING MONEY CONTROL

OPTIONS BINGO

WHAT IS THE OPEN INTEREST-IN-OPTIONS-TRADING-NIFTY

OPEN INTEREST IS NOTHING BUT NUMBER OF CONTRACTS TRADED ON STOCK OR INDEX.

IT INDICATES THE MOVEMENT OF STOCK OR INDEX.


BELOW SCREEN SHOT IS ENOUGH TO LEARN ABOUT OPEN INTEREST.


LEFT SIDE SHOWS CALLS OPEN INTEREST (OI).


RIGHT SIDE SHOW PUTS OPEN INTEREST(OI).

NIFTY OPTIONS CHAIN

ALL ARE NIFTY INDEX JULY-26 CONTRACTS.

MIDDLE ROW SHOWS INDEX STRIKE VALUE.

Open Interest plays major role in options trading.depends on open interest traders

can decide to act as a bull or bear.

Generally Open Interest movement happens @ stock results,important announcements (inflation,

RBI rate cut, news..),long bull or bear run.

HOW TO BECOME A EXPERT IN OPTIONS FUNDAMENTAL ANALYSIS?

WHAT IS FUNDAMENTAL ANALYSIS?


USING FUNDAMENTAL ANALYSIS WE FIND THE REAL VALUE OF THE STOCK.

knowing about company is very important before we bet on the company.


charts and company's financial results are key points of FUNDAMENTAL ANALYSIS.


OPTION TRADING IS THE VERY RISK TRADING,SO BEFORE GOING TO TRADE..


WE MUST KNOW THE FUNDAMENTALS OF THE STOCKS.


SOME OF NEWS BASED STOCKS MOVES UP TO DAY AND DOWN TOMORROW SHARPLY WITHOUT CHANGING IT'S FUNDAMENTALS. SO TRADERS LOOSE MONEY.


IF WE KNOW THE FUNDAMENTALS OF STOCKS..WE NEVER DO MISTAKE AND WE NEVER LOOSE HARD EARNING MONEY IN THE MONEY MARKET.






WHO IS THE BEST FUNDAMENTAL ANALYST IN THE WORLD?

WARREN BUFFET 

TYPES OF OPTIONS IN INDIAN STOCK MARKET

Options are 2 types


1.Call Option.
2.Put Option.


Call Option is a right to buy the underlying stock or index on or before expiry date


We choose Call Option if underlying stock or index is going up or in bullish trend.


Put Option is a right to sell the underlying stock or index on or before expiry date.


We choose Put Option if underlying stock  or index is going down or in bearish trend.


In Indian Stock Market stock derivatives expiry is 1 to 3 months.


In Indian Stock Market Index Options expiry is 1 month to more than 2 years.

What is an Option?

In Indian Stock Market we can trade in

EQUITIES
DERIVATIVES


In DERIVATIVE we can trade in  FUTURES AND OPTIONS.


What is Option?

Option is contract between option seller and option buyer,

contract give right to buy or sell underlying stock at the strike price on or before expiry date.

Buyer must exercise his options before expiry date.

to activate you FUTURE AND OPTIONS ACCOUNT in your demat account you must submit

6 months bank statement or salary statements to your brokerage company.

If you have small amount in your account you can buy and then sell your options.

but if You want sell options ( i.e Option writing) you must have huge amount

depends on brokerage company.


OPTION WRITING OFFERS HIGH RISK..If you are 1000% confident about

your trades then you can do...other wise you loose hard earned money..

when you buy options after execution your full amount deduct on the spot

in the same way if sell options or write the options amount will be credited

immediately...no obligation like equity trade...

OPTIONS ARE SUITABLE FOR A FAST MIND WITH QUICK DECISIONS.

Before going to do Option trading you must have at least 2 years of equity trading

experience,