Derivatives

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 ...

PCR: This ratio will help gauge the sentiment of options market

Put-call ratio, also known as PCR, is used to gauge the sentiment of options market. A higher proportion of call options to put options indicates a ...

Learn how to set up a covered call position

Buy an underlying and simultaneously short a call option on it

Set up bear-put spread on Titan stock this week

Maximum loss will be the premium paid

Short Take: Trading volume, open interest

When it comes to trading, liquidity is a critical prerequisite. Derivative contracts of stocks/commodities that are more liquid are preferred for ...

Mastering Derivatives: ‘Butterfly’ for sideway moves

Choose between setting up a put butterfly or a call butterfly

F&O strategy: Sell deep out-of-the-money HCL Tech call option

Stock may see some volatility ahead of result announcement

Bullion cues: Fresh Covid concerns may boost gold

Rising number of cases is a major worry, which can push up demand for safe-haven assets

Short take What does OTM, ATM mean in options trading

The strike price of an option contract (call/put) in relation to the market price of the underlying stock is termed as moneyness. This moneyness in a ...

Mastering Derivatives When to use ‘strangle strategy’ for options trading

Outlay is significantly lower than that of a straddle

F&O Strategy Why you should do a bull-call spread on Sun TV

Rollover of open interest to April signals positive bias in the stock

Bullion Cues How long will rising yields drag gold prices

The 10-year US Treasury yield marked a 14-month high of 1.754% on Thursday

SHORT TAKE How settlement of derivatives happens

Gone are the days when the derivatives contracts were cash settled. As per the Securities and Exchange Board of India mandate, derivatives contracts ...

Mastering Derivatives How to use straddle strategy to make money in options

Cost of setting up this strategy closer to contract expiry will be low

F&O Strategy How to profit by selling Coal India call options

This approach will capture the time value premium of the contract

BULLION CUES Can gold and silver race past roadblocks ahead?

Both gold and silver futures continue to trade below key resistance levels

Short Take Why you should go for adequate stop-loss in options

Suppose, Nifty is trading at 14,000 I would sell 13,900 Put and sell 14,100 Call option keeping a stop-loss of around 10 points on each side. When ...

Mastering Derivatives How to set up option strategies without a directional view

This approach can come handy during macro-level events when there is uncertainty surrounding the outcome

F&O Strategy HDFC Bank: Why buying puts can work this week

Position will turn positive only if the stock slides down swiftly

Bullion Cues Can gold prices rebound from lows?

Silver is trading above a trend-defining support level of ₹65,000

Short Take How to predict option trends

F&O analysis reports often talk about more call writing happening or more puts being added on long side at a strike price etc. to predict some ...

Put-based spread strategies for bearish plays

Apt for taking advatage of a bearish view on the underlying

F&O Strategy How to use a bear-put spread on L&T stock

Sell ₹1,400-strike put while simultaneously buying the ₹1,440-strike put

Is gold set to fall further?

Bond yields are likely to go up and so will the dollar; these two factors can be a drag on bullion prices

How to identify stocks for options trading

How to identify stocks for option trading? Which time frame chart to refer to?- SantoshWhen it comes to options trading, choosing the stock can be ...

How to generate profit in call option even when the underlying falls

You can set up a call backspread by shorting a lower strike call and going long on multiple contracts of a higher strike call of the same maturity on the same underlying