Articles: Trading Ideas by Jay

India VIX – India Volatility Index

India VIX is India’s volatility Index which is a key measure of market expectations of near-term volatility conveyed by NIFTY stock index option prices. This volatility index is computed by NSE based on the order book of NIFTY Options. For this, the best bid-ask quotes of near and next-month NIFTY options contracts which are traded […]

By |November 29th, 2016|Basic Options & Strategies|0 Comments

Bullish Option Strategy: Long Call

This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any
investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent
returns in the near future.

Risk:  The risk of the buyer is the amount paid by him […]

By |November 29th, 2016|Basic Options & Strategies|0 Comments

PCR Ratio: Put Call Ratio

The Put/Call Ratio is an indicator that shows put volume relative to call volume. Put options are used to hedge against market weakness or bet on a decline. Call options are used to hedge against market strength or bet on advance. The Put/Call Ratio is above 1 when put volume exceeds call volume and below […]

By |November 28th, 2016|Basic Options & Strategies|0 Comments

Options Open Interest

Price movements in the options market result from the decisions of millions of traders. But there are a number of useful statistics besides price movements that tell you what those other market participants are doing.
Open interest is a concept all option traders need to understand. Although it is always one of the data fields on […]

By |November 28th, 2016|Basic Options & Strategies|0 Comments

Option Greeks

In options trading, you may notice the use of certain greek alphabets when describing risks associated with various positions.  Option prices can change due to directional price shifts in the underlying asset, changes in the implied volatility, time decay, and even changes in interest rates.They are known as “the greeks” and here. They are delta, […]

By |November 28th, 2016|Basic Options & Strategies|0 Comments

Basic of Stock Options

An option is a contract which gives the right ( but not the obligation ) to buy or sell an underlying financial instrument at pre-specified date. The price at which shares can be bought or sold also is defined by the contract, and is known as the strike price. The option seller has the obligation […]

By |July 5th, 2015|Basic Options & Strategies|0 Comments