View Test Prep - blogger.com from CS at DJ College of Engineering & Technology. NSE's CERTIFICATION IN FINANCIAL MARKETS OPTIONS TRADING STRATEGIES MODULE WORK BOOK NATIONAL STOCK Options Trading Strategies Module Introduction to Options Concept of Options and Option Payoffs of buyers and sellers. Option Strategies The 22 different option strategies covered are Long Call, Short Call, Synthetic Long Call, Long Put, Short Put, Covered Call, Long Combo, Protective Call, Covered Put, Long Straddle, Short NSE Circular New Download Full PDF Package. This paper. A short summary of this paper. 1 Full PDF related to this paper. READ PAPER. Option Trading Stratiges-NSE. Download. Option Trading Stratiges-NSE
(PDF) OPTIMAL TRADING STRATEGIES AND PERFORMANCE OF OPTIONS AT NSE. | IJAR Indexing - blogger.com
To browse Academia. edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. Skip to main content. edu no longer supports Internet Explorer. Log In Sign Up. Download Free PDF. Option Trading Stratiges-NSE. Bittu Blog. Download PDF. Download Full PDF Package This paper. A short summary of this paper. READ PAPER. Copyright © by National Stock Exchange of India Ltd. NSE Exchange Plaza, Bandra Kurla Complex, Bandra EastMumbai INDIA All content included in this book, such as text, graphics, logos, options trading strategies pdf nse, images, data compilation etc.
are the property of NSE. This book or any part thereof should not be copied, reproduced, duplicated, sold, resold or exploited for any commercial purposes. Furthermore, the book in its entirety or any part cannot be stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise. Preface The National Stock Exchange of India Ltd. NSEset up in the yearis today the largest stock exchange in Options trading strategies pdf nse and a preferred exchange for trading in equity, debt and derivatives instruments by investors.
NSE has set up a sophisticated electronic trading, clearing and settlement platform and its infrastructure serves as a role model for the securities industry. The standards set by NSE in terms of market practices; products and technology have become industry benchmarks and are being replicated by many other market participants.
NSE has four broad segments Wholesale Debt Market Segment commenced in JuneCapital Market Segment commenced in November Futures and Options Segment commenced June and the Currency Derivatives segment commenced in August At NSE, it has always been our endeavour to continuously upgrade the skills and proficiency of the Indian investor. Exchange-traded options form an important class of derivatives which have standardized contract features and trade on public exchanges, facilitating trading among investors.
They provide settlement guarantee by the Clearing Corporation thereby reducing counterparty risk. Options can be used for hedging, taking a view on the future direction of the market or for arbitrage. Options are also helpful for implementing various trading strategies such as straddle, strangle, butterfly, collar etc. which can help in generating income for investors under various market conditions. This module is being introduced to explain some of the important and basic Options strategies.
The module which would be options trading strategies pdf nse 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 Markets Dealers Module before taking up this module. To get a better clarity on the strategies, it is important to read the examples and the pay-off schedules. The pay-off schedules can be worked out using a simple excel spreadsheet for better understanding.
We hope readers find this module options trading strategies pdf nse valuable addition which aids in understanding various Options Trading Strategies. SHORT STRANGLE BULL CALL SPREAD STRATEGY BULL PUT SPREAD STRATEGY In return for granting the option, the seller collects a payment the premium from the buyer, options trading strategies pdf nse.
Exchange- traded options form an important class of options which have standardized contract features and trade on public exchanges, facilitating trading among large number of investors. Options can be used for hedging, taking a view on the future direction of the market, options trading strategies pdf nse, for arbitrage or for implementing strategies which can help in generating income for investors under various market conditions.
In India, they have a European style settlement. Nifty options, Mini Nifty options etc. Options trading strategies pdf nse stock option contract gives the holder the right to buy or sell the underlying shares at the specified price.
They have an American style settlement. It is also referred to as the option premium. A call option on the index is said to be in-the-money when the current index stands at a level higher than the strike price i. If the index is much higher than the strike price, the call is said to be deep ITM.
In the case of a put, the put is ITM if the index is below the strike price. An option on the index is at-the-money when the current index equals the strike price i. Options trading strategies pdf nse call option on the index is out-of-the-money when the current index stands at a level which is less than the strike price i.
If the index is much lower than the strike price, the call is said to be deep OTM. In the case of a put, the put is OTM if the index is above the strike price.
The intrinsic value of a call is the amount the option is ITM, if it is ITM. If the call is OTM, its intrinsic value is zero. Putting it another way, the intrinsic value of a call is Max[0, St — K ] which means the intrinsic value of a call is the greater of 0 or St — K. Similarly, the intrinsic value of a put is Max[0, K — St ],i, options trading strategies pdf nse. the greater of 0 or K — St. K is the strike price and St is the spot price.
Both calls and puts have time value, options trading strategies pdf nse. An option that is OTM or ATM has only time value. Usually, the maximum time value exists when the option is ATM. The longer the time to expiration, the greater is an option's time value, all else equal. At expiration, an option should have no time value. In simple words, it means that the losses for the buyer of an option are limited, however the profits are potentially unlimited.
For a writer sellerthe payoff is exactly the opposite. His profits are limited to the option premium, however his losses are potentially unlimited.
These non- linear payoffs are fascinating as they lend themselves to be used to generate various options trading strategies pdf nse by using combinations of options and the underlying. We look here at the six basic payoffs pay close attention to these pay-offs, since all the strategies in the book are derived out of these basic payoffs. shares for instance, for Rs. Once it is options trading strategies pdf nse, the investor is said to be "long" the asset.
Figure 1. at Rs. The investor bought ABC Ltd. If the share price goes up, he profits. If the share price falls he loses. ABC Ltd. Once it is sold, the investor is said to be "short" the asset. The investor sold ABC Ltd. If the share price falls, he profits. If the share price rises, he loses. If upon expiration, the spot price exceeds the strike price, he makes a profit. Higher the spot price, more is the profit he makes.
If the spot price of the underlying is less than the strike price, he lets his option expire un-exercised. His loss in this case is the premium he paid for buying the option. As can be seen, options trading strategies pdf nse, as the spot Nifty rises, the call option is in-the-money. If upon expiration, Nifty closes above the strike ofthe buyer would exercise his option and profit to the extent of the difference between the Nifty-close and the strike price.
The profits possible on this option are potentially unlimited. However if Nifty falls below the strike ofhe lets the option expire. His losses are limited to the extent of the premium he paid for buying the option. For selling the option, the writer of the option charges a premium.
Whatever is the buyer's profit is the seller's loss. If upon expiration, the spot price exceeds the strike price, the buyer will exercise the option on the writer. Hence as the spot price increases the writer of the option starts making losses.
Higher the spot price, more is the loss he makes. If upon expiration the spot price of the underlying is less than the strike price, the buyer lets his option expire un-exercised and the writer gets to keep the premium. As the options trading strategies pdf nse Nifty rises, the call option is in-the-money and the writer starts making losses, options trading strategies pdf nse.
If upon expiration, Nifty closes above the strike ofthe buyer would exercise his option on the writer who would suffer a loss to the extent of the difference between the Nifty-close and the strike price. The loss that can be incurred by the writer of the option is potentially unlimited, whereas the maximum profit is limited to the extent of the up-front option premium of Rs.
If upon expiration, the spot price is below the strike price, he makes a profit.
Options Trading for Beginners (The ULTIMATE In-Depth Guide)
, time: 2:53:4222 NSE Options Trading Strategies
06/09/ · Options Trading Strategies Module. There are vast arrays of strategies available for trading options. This module discusses the objectives of these strategies and the conditions under which they are successful. It is advisable to take the NCFM Derivatives Markets (Dealers) Module test which would make you familiar with the basic concepts of the Section 5: Strategies Earnings Strategy Quiz 21 & 22 Options Arbitrage Strategy: PC Parity Quiz 23 & 24 Box Strategy Quiz 25 & 26 Recap Section 6: Volatility Trading Strategies Forward Volatility Strategy IPython Notebook: Backtesting Forward Volatility Strategy Code Interactive Exercise 5 & 6 Options Trading Strategies Module Introduction to Options Concept of Options and Option Payoffs of buyers and sellers. Option Strategies The 22 different option strategies covered are Long Call, Short Call, Synthetic Long Call, Long Put, Short Put, Covered Call, Long Combo, Protective Call, Covered Put, Long Straddle, Short NSE Circular New
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