Derivatives

We received a question from Vijay K, one of our readers of the “Mastering Derivatives” column. The query relates to our article about converting a ...

The approach uses long call to moderate the disposition effect

As wild swings can result in heavy losses, conservative traders can stay away

₹48,500 is acting a strong resistance whereas ₹46,500 is a strong support

Minimum duration of staggered delivery period shall be at least five working day

Evaluate all options before you convert original position to a spread

Alternatively, traders could consider bear-put spread strategy

After a brief consolidation, bullish signs emerge with gold futures likely to cross ₹48,500

To trade in cash market or derivatives market, one should have a minimum amount of money to initiate trades, and this is called margin. Peak margin ...

This strategy would help reduce losses, if not generate profits, on your initial position

As volatility is expected, risk averse traders can stay away from this trade

Rising open interest along with a dip in prices could be a bearish signal

Contango and backwardation are two common terms that investors and traders in commodities markets often hear. Understanding them helps gauge the ...

Useful when the underlying is likely to rebound soon after its drop

Option trading indicates a range of ₹900-950 for the stock movement

The likelihood of a minor correction in price at this juncture cannot be ruled out

When it comes to trading, it is imperative to understand the concept of volatility. Volatility is the amount of variation of a price of a security ...

Protects downside risk on the underlying by going long on put option

Strong surge seen on open positions in the last few days

Technicals show both precious metals showing bullish signs after second straight week of gains

I read somewhere that since most call options are sold by large institutions, they act as resistance. Hence if calls are higher than puts (for example ...

This is a directional trade and can be compared to a bull call spread

Sell the 660-strike call and simultaneously buy the 640-strike call

Silver looks positive but lacks the higher volumes required to substantiate bullishness