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What is Short Straddle Strategy?
Selling options (Both call & put options) with the same strike price, quantity, and expiry is called short straddle strategy. Short straddle strategy gives good returns compared to many of the option selling strategies. A short straddle is profitable only when the market stays range-bound. One cRead more
Selling options (Both call & put options) with the same strike price, quantity, and expiry is called short straddle strategy.
Short straddle strategy gives good returns compared to many of the option selling strategies.
A short straddle is profitable only when the market stays range-bound. One can make huge losses if the market moves in any one direction.
It is better to avoid this strategy when the market is in volatile condition.
See lessZerodha or Upstox Which is Good for Day Trading?
I have Demat accounts on both Zerodha and Upstox. I can say Zerodha is better than Upstox in terms of intraday and delivery charges. Zerodha is charging Rs. 20 to 0.03% (whichever is lower) per intraday trade. Whereas Upstox is charging Rs. 20/- per trade or 0.05% of the traded value. Also, ZerodhaRead more
I have Demat accounts on both Zerodha and Upstox. I can say Zerodha is better than Upstox in terms of intraday and delivery charges.
Zerodha is charging Rs. 20 to 0.03% (whichever is lower) per intraday trade. Whereas Upstox is charging Rs. 20/- per trade or 0.05% of the traded value.
Also, Zerodha is not charging for Equity Delivery trades.
The Equity delivery charges in Upstox are Rs. 20/- per trade or 2.5% whichever is lower.
I personally prefer Zerodha for those who trade in bulk quantity (both for delivery & intraday).
See lessWhat is the Best Option Selling Strategy in Low Vix?
Any strategy in option selling is good in low VIX conditions. It is good for option sellers if the Indian VIX is less than 20. If you want to stick to one particular strategy, then I would suggest Short Straddle. Even though the short strangle is low at risk, but in low vix conditions, it gives feweRead more
Any strategy in option selling is good in low VIX conditions. It is good for option sellers if the Indian VIX is less than 20.
If you want to stick to one particular strategy, then I would suggest Short Straddle. Even though the short strangle is low at risk, but in low vix conditions, it gives fewer returns.
If you are looking for high returns, you can choose a short straddle strategy but make sure to adjust the positions when the market moves in one direction. Otherwise, it may end up in huge losses.
See lessWhat is Short Strangle Strategy?
Short Strangle strategy is one of the most used strategies by traders. Short Strangle strategy works best when the market is range-bound. What is Short Strangle Strategy? Selling slightly Out of the Money Call & Put Options of the same quantity and the same expiry is called Short Strangle StrateRead more
Short Strangle strategy is one of the most used strategies by traders. Short Strangle strategy works best when the market is range-bound.
What is Short Strangle Strategy?
Selling slightly Out of the Money Call & Put Options of the same quantity and the same expiry is called Short Strangle Strategy.
Margin Required for Short Strangle Strategy:
If you sell nakedly, the margin required for Short Strangle for 1 lot of Bank Nifty Options is approximately Rs. 1,60,000/-
How to do Adjustments?
There is not much need for adjustments when the market is moving in range-bound. If the market moves in one direction, then you should do adjustments to avoid losses.
See lessWhy Indian Stock Market Indices Depends on SGX Nifty?
Generally, our indices like the Nifty open close to the SGX Nifty index price. The reason is the time-lapse of Singapore and India is very close and also the index value of both the indices is very closer. To be frank, our market depends on all the global markets. It reacts to the positives and negaRead more
Generally, our indices like the Nifty open close to the SGX Nifty index price. The reason is the time-lapse of Singapore and India is very close and also the index value of both the indices is very closer.
To be frank, our market depends on all the global markets. It reacts to the positives and negatives.
Not only Indian markets, but the situation is also the same in all the countries. Because there is huge connectivity between the countries in terms and business and economy.
For an instance, If there is negative news in a country where our companies are generating huge revenue (through production or exports, etc), then definitely there is an impact on our indices also.
So finally, all the countries are interconnected to each other in some or the other.
See lessHow to Adjust the Short Strangle When there is a Sudden Fall in the Market?
If the market falls 500 to 900 points in 1 or 2 hours' time, then it is easy to adjust the positions according to the movement. But if the market falls more than 800 points in no time, then it is really difficult to adjust the positions. But If you observe the past candles, whenever Bank Nifty fallsRead more
If the market falls 500 to 900 points in 1 or 2 hours’ time, then it is easy to adjust the positions according to the movement.
But if the market falls more than 800 points in no time, then it is really difficult to adjust the positions.
But If you observe the past candles, whenever Bank Nifty falls 800 to 900 points in just a single or two candles (5 min) there must be a short covering of at least 30-40%.
It is suggested to do adjustments after the short covering to minimize the losses.
See lessWhat is the Best Indicator for Swing Trading?
Price action and Moving Averages are the best indicators for swing traders. Few swing traders don't even follow the fundamentals of the company, they just take positions based on important support and resistance levels. Other few indicators that are useful for swing trading are Volume RSI IndicatorRead more
Price action and Moving Averages are the best indicators for swing traders. Few swing traders don’t even follow the fundamentals of the company, they just take positions based on important support and resistance levels.
Other few indicators that are useful for swing trading are
Using more indicators will definitely make you confused. So stick to one or two indicators that work best for you.
See less