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What is Premium Decay in Option Selling?
When the time gap between the current day and the expiry day reduces, then the probability of making money through option buying is very less. So the premiums reduce gradually when time passes. Option Premiums are inversely proportional to the time. When the market consolidates at the same point, thRead more
When the time gap between the current day and the expiry day reduces, then the probability of making money through option buying is very less. So the premiums reduce gradually when time passes.
Option Premiums are inversely proportional to the time. When the market consolidates at the same point, then the option premiums fall gradually as time passes.
See lessWhat is the Required Margin for Option Selling in Nifty?
The approximate margin required in Nifty Option selling for 1 lot is Rs. 65000/- to Rs. 80,000/-. You can reduce the margin by hedging. Even you can sell options in nifty with just 20,000/- also. What is Hedging: Most of the traders use hedging to reduce the margin for selling options. Buying far awRead more
The approximate margin required in Nifty Option selling for 1 lot is Rs. 65000/- to Rs. 80,000/-. You can reduce the margin by hedging. Even you can sell options in nifty with just 20,000/- also.
What is Hedging:
Most of the traders use hedging to reduce the margin for selling options.
Buying far away options of the same quantity as what you are selling is known as hedging. Some investors use hedging to cut down the risks and some traders use this for reducing margins.
See lessHow was Your Journey in Stock Market?
I have entered the stock market in March 2019 with an initial capital of Rs. 10000/-. I used to buy penny stocks like Yesbank, Idea, HCC, Trident, Reliance Infra, etc. My daily routine was buying stocks and selling when it goes up and averaging when it goes down. I made around 40000 profit in 3 montRead more
I have entered the stock market in March 2019 with an initial capital of Rs. 10000/-. I used to buy penny stocks like Yesbank, Idea, HCC, Trident, Reliance Infra, etc.
My daily routine was buying stocks and selling when it goes up and averaging when it goes down.
I made around 40000 profit in 3 months with a capital of 2.5 lakh.
One day yes bank has started falling and I started averaging it with all my capital. The loss went to 25000 and I left with no capital. I decided to hold it for a few days so that the loss will recover.
7 days gone now the loss is 75000. Scared and sold all the shares.
Took some gaps and learned fundamental analysis and technical analysis. Now I am doing swing trading in Equity stocks.
See lessWhat is ITM, OTM, and ATM?
First, let us see the full abbreviations of ITM, ATM, and OTM. ITM - In the Money ATM - At the Money OTM - Out of the Money Now, let us understand the above factors based on the example. Let us consider the Nifty is trading at 17000. Now, 17000 Call & Put options become In the Money options AllRead more
First, let us see the full abbreviations of ITM, ATM, and OTM.
ITM – In the Money
ATM – At the Money
OTM – Out of the Money
Now, let us understand the above factors based on the example.
Let us consider the Nifty is trading at 17000.
Now, 17000 Call & Put options become In the Money options
All the call options below 17000 (16950, 16900, etc.,) become in the money (ITM) Call options.
All the put options below 17000 (16950, 16900, etc.,) become out of the money (OTM) Put options.
All the call options above 17000 (17050, 17100, etc.,) become Out of the Money (OTM) Call options.
All the put options above 17000 (17050, 17100, etc.,) become In the money (ITM) Put options.
See lessWhat is the Best Site for Paper Trading in India?
There are many sites for paper trading, but only few sites are there for options. Personally, I do paper trading in Opstra. Sensibull is also the better choice for options trading.
There are many sites for paper trading, but only few sites are there for options. Personally, I do paper trading in Opstra. Sensibull is also the better choice for options trading.
See lessHow to Open a Demat Account in Zerodha Kite?
Step 1: Visit Zerodha Site here Step 2: Enter you mobile number and fill up all the required details Step 3: Upload the necessary documents like PAN Card, Aadhar Card, Bank Account details and submit the form Step 4: You will be notified through your Email ID regarding the activation of the account.Read more
Step 1: Visit Zerodha Site here
Step 2: Enter you mobile number and fill up all the required details
Step 3: Upload the necessary documents like PAN Card, Aadhar Card, Bank Account details and submit the form
Step 4: You will be notified through your Email ID regarding the activation of the account.
Step 5: Login credentials will be mailed to you after the activation
See lessWhat is the Minimum Capital Required for Options Trading?
Most of the retail traders choose option buying thinking option selling requires high margins. Eventually most of the time they lose the entire capital with in no time. Option selling doesn't require heavy margins if you hedge the positions properly. Even you can sell options with a minimum capitalRead more
Most of the retail traders choose option buying thinking option selling requires high margins. Eventually most of the time they lose the entire capital with in no time.
Option selling doesn’t require heavy margins if you hedge the positions properly. Even you can sell options with a minimum capital of 30k to 40k.
If you are an option buyer, the minimum capital required is premium value x lot size. As I said the minimum capital required to sell the options is 30k if you hedge the position.
See lessHow to Select Stocks for Intraday?
There are more than 3000 stocks under equity segment. It is really difficult to choose the best stock for intraday. Choosing more number stocks and changing them day to day is not advisable for intraday. Most of the professional traders choose only few stocks (less than 5 stocks)for intraday. TradinRead more
There are more than 3000 stocks under equity segment. It is really difficult to choose the best stock for intraday. Choosing more number stocks and changing them day to day is not advisable for intraday.
Most of the professional traders choose only few stocks (less than 5 stocks)for intraday. Trading frequently in same stocks for a period of time will give you confidence. You will know how it reacts in gap up, gap down situations.
In a way the stock will become friendly to you. You know when to buy, when to sell and what not.
You better master the single stock rather than trading in multiple stocks. But choose the stock from mid or large cap. Small cap stocks may undergo stimulation. You may incur huge losses due to unexpected movements in the stock.
See lessWhich Stock Broker is Best for Intraday Trading?
Both Zerodha and Alice Blue are best at brokerage and user interface.
Both Zerodha and Alice Blue are best at brokerage and user interface.
See lessWho is your Favourite Investor in India?
Radhakishan Damani, honest and humble investor.
Radhakishan Damani, honest and humble investor.
See less