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Making money in nifty options

making money in nifty options

Very few people in the world optios good at almost everything they. Pran Katariya is one of. Since he did not like the idea of working on the shop floor mony joined his family business and managed it for a number of years. But this is not something that makes Pran Katariya unique. He was also a national level ranked table tennis player and loves his music, especially old Hindi movies. He organises stage shows across the country under the name Klub Nostalgia which is also a very popular channel on the YouTube. The shows are generally for charity with a recent one done for war widows. Besides this Katariya is a successful individual trader who trades large position, managing his family money. But like every trader, Katariya also had to ij through the tough learning phase in trading. Rather than struggling it out, the table tennis player in him decided to take the best training possible.

Nifty options are of two types —call and put options.

All rights reserved. For reprint rights: Times Syndication Service. Markets Data. Market Moguls. Expert Views. Technicals Technical Chart Visualize Screener. Commodities Views News. Forex Forex News Currency Converter. Market Watch. Pinterest Reddit.

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You need to find some one who has done it in the past, and who can guide you. As you know stock market is risky and option trading is riskier. Still if you want follow step in this answer, I gave few days back. What is the best strategy for nifty option trading? What I am going to write has many trading lessons for positional trading, so read it carefully. Your email address will not be published. Sign me up for the newsletter. Answer by Ruchir Gupta: You need to find some one who has done it in the past, and who can guide you. What I am going to write has many trading lessons for positional trading, so read it carefully There are many many factors you need to learn about. Options Expiry: Options have a expiry period, so if the Nifty is not trading In-The-Money , your option may expire worthless. In such cases if you know that points movement you seek may take 20 days, while current expiry only left with 10 days, go and trade in the next month contract.

One who sells a call or put option to a buyer for a premium, or price of the option.

Getting started with investing and in options trading can be a bit intimidating. Learn how to trade options succesfully from the experts at RagingBull. Due to continuous innovations throughout the markets and changes in how the stock market runs in general, most of the action when it comes to trading takes place online. Investing was once quite a simple concept, where individuals would invest their finances in one or two small companies and stick with those investments as they grew. Today, investing is more complicated than ever before and even includes new forms of currency. With all of these changes and the fast-paced environment of the online market, getting started with investing and options trading can be a bit intimidating. Thankfully, there are plenty of resources out there and experts with years of experience and success ready to teach you what you need to know. The key to succeeding in the world of trading is knowledge. Image via Flickr by free pictures of money. If you want to learn how to make money in options trading, the first step is to develop a strategy for options trading.

Let’s Get Started…What IS Options Trading?

Nifty may fall to support ib of Momentum slowing down in Nifty Private Bank moneey. View: Resistance for Nifty seen at 12, levels. How to play a range-bound Nifty. Nifty support seen at levels. All rights reserved.

For reprint rights: Times Syndication Service. Markets Data. Nify Moguls. Expert Views. Technicals Technical Chart Visualize Screener. Commodities Views News. Forex Forex News Currency Converter. Market Oprions. Pinterest Reddit. By Ram Sahgal. Getty Images. ET explains how: 1. What are Nifty futures and options? Nifty futures are a contract that gives its buyer or seller the right to buy or sell the Nifty 50 index at a preset price for delivery at a future date.

Nifty options are of two types —call and put options. A call option on Nifty gives a buyer the right, but not the obligation, to buy the mooney at a predetermined price during a specified time period.

Ophions, a Nifty put gives its buyer the right to sell the index. A seller of the options is obliged to give or take delivery of Nifty from the buyers. In practice index futures are cash settled, like their European mzking. How does a Nifty futures and options contract work? Suppose trader A feels Nifty will rise fromshe can buy one lot 75 shares of Nifty futures by putting a margin at a fraction of the contract cost. Noney counterparty trader B sells her Nifty at that level.

If the Nifty futures fall toB sells the futures to A for even though Nifty trades atwhich means the buyer faces a Rs a share loss. As opposed to buying a futures contractA can buy a call option on Nifty by paying a premium of Rs closing price on Friday per share. If Nifty jumps by points at expiry to the option value will rise by around Rs The seller of the option has to in this case makng out the money.

However, the call buyer could also have an unrealised loss if the Nifty falls by a similar extent. Both futures and options are cash settled except where specified for compulsory delivery by the exchanges. Both have their advantages and disadvantages. Again, holding an option for long results in loss of value due to time decay, which does not happen in making money in nifty options of futures, which also can be rolled over, unlike the.

But, gains and losses in futures can be unlimited. In options losses for the buyer are limited to the premium paid sellers of options are exposed to higher loss of risk, though while profits buyer are very high. Where and how can these contracts be traded? Nifry opening a trading account with a broker — demat moey not necessary since these contracts are cash settled. However, most trade them on NSE which has a highly liquid derivatives platform.

Planning to invest in stocks? Read this article in : Hindi. Read more on Nifty. Futures contract. Follow us on. Download et app. Become a member. To see your saved stories, click on link hightlighted in bold. Fill in your details: Will be displayed Will not be displayed Will be displayed.

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Bank nifty Intraday regular profit strategy — 4000-5000 rs everyday

The market is likely to hit new highs in 2020, and Nifty could touch levels of around 13,000-14,000, suggest experts.

The price of an option is based upon the price of a security, time to expiry of option and volatility in the security. There are various guides and books which describe the concept of pricing of options in more detailed manner. Options as instruments came into the picture to provide a way to big traders as the omney against their portfolio risk. When there is big enough trade position in a certain stock or index stocks, then to protect that position there are limited options:. Making money in nifty options reality, this reason of buying options constitutes little part of the total trading volume of options on an exchange mainly NSE. So who makes the majority portion of options trading volume on daily basis. And you guessed it right. Which means if you are bullish in market ,aking, then rather then buying a call optionyou actually sell a put option. When you buy an option, you only pay a premium. Because, statistically, there are higher chances of your option losing its value faster, due to the market being in range, as compared to a meteoric rise in price which you expected when you bought the option. There are two components in the price of every option: inherent value and time value. The inherent value of an option is the value with which the price of underlying security is above, from the strike price of an option. Then in this scenario, the inherent value of this mxking is:. This, brings up the next question?

Forecast with WD Gann Cycles

Nifty options data hints at 12, levels this week. Predicting a market range using Nifty options. Weekly Nifty options are proving to be useful choice in these times. Options sellers and their role in Nifty options. All rights reserved. For reprint rights: Times Syndication Service. Markets Data.


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