Best option strategy for indian market. The best stocks to use will be the higher-priced stocked, generally over $ and many times many hundreds of dollars, because those stocks generate larger option premiums due to their size. These stocks can all be used for both directional and non-directional option trading strategies. -Given by Mark Fenton, Senior.

Best option strategy for indian market

Nifty Options Strategy - Covered Call, Covered Put

Best option strategy for indian market. This module is being introduced to explain some of the important and basic Options strategies. The module which would be of interest to traders, investors, students and anyone interested in the options markets. However, it is advisable to have a good knowledge about the basics of Options or clear the NCFM Derivatives.

Best option strategy for indian market

We are into Derivatives markets from last ten years and have seen lots of cycles of market. We have experimented with huge number of strategies at different points of time. We have seen that a particular strategy may work for few months and then may not bring desired results at all.

And then you require a different strategy to get returns from the market. During all these years of research and experimentation, we always looked for a strategy which can work in all the market conditions. And we are very clear about our golden rules. Stop loss — which is also a loss. So, why should we waste effort and energy on some method where we do not have any control.

After going through many processes, we are able to zero in on a strategy with which we can work even for next many years. But , you cannot execute the strategy blindly. Obvious, because stock market is not a place to trade blindly.

And these adjustments do not mean that you are adjusting your positions every now and then. No , only at critical points , which are pre- defined , you need to do adjustment. Click here to open account with our special tie up. Question which comes to mind is why a new strategy is required? They are all standard option strategies mostly useful for index options like nifty, banknifty and sometimes in few stocks.

All of these have their own risks and rewards. Sometimes they work and sometimes not. One may make good returns for three months and fourth month all your profits or may be major part of it may get wiped out.

And major area of concern is , most of them do not work well in stock options because of poor liquidity in stock options. So we need a trading plan which works in stocks inspite of their low liquidity and which also takes care of downside risk. It also gives you an alternative option from nifty index options. Ultimately , one need to diversify within market also! Want to get our latest article delivered to your mail? Enter your email address and name below.


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