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Institutional Activity

Participant-OI data How to read?

To understand any open interest data the basics has to be stronger by that i mean you should be crystal clear about the meaning of open interest and how it changes, if you are clear about these two things then it’s not difficult to analyze any kind of scenario. So if you are not sure […]

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Institutional Activity

Decode the Institutional Action-F&O

As a retail trader it is very critical that you understand the way the markets function and what drives the markets. Well here’s a thought you might consider to be true.. The idea is that markets are driven by demand and supply which in turn are driven by money size. If one has big chunk […]

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General trading topics Options basics

Checklist for option writers

Trading as an option writers or sellers isn’t easy because you need to consider a lot of factors in deciding what option to sell.. Volatility and moneyness of an option strike are two important factors to consider among others. While there are a lot of advantages being an option writer, there are cases where an […]

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General trading topics Options basics

Checklist for an Option buyer

Trading as an option buyer isn’t an easy game as there are a lot of factors playing out opposite to you,time decay,rate of change of underlying(volatility) are worth a mention. Still if you follow some rules as part of your trading as an options buyer, you can be one of these very rare successful trader […]

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General trading topics

Liquidity in derivatives trading

Here’s a brief about the concept of liquidity and why you should give importance to it if you are trading derivatives. Firstly liquidity is the a measure of assessing if there are enough buyers and sellers available in the market. Higher liquidity means that there are enough buyers and sellers and vice-versa for lower liquidity. […]

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Options basics

Call and Put basics

In this post we wanted to just mention about the basics of a call and put options in its most practical used form rather than going into technicals on which there’s already enough content on the internet which you can explore. Simply put, people who are bullish can buy a call and people who are […]

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Options Advanced concepts

IV in Options

Implied volatility is nothing but the volatility for which the options have been priced i.e. if options are priced higher means the street is expecting higher volatility and hence demanding higher premiums and a lower IV means that there is less uncertainty and the premiums demanded are lower. Leaving the technical definition of Implied volatility(IV) […]

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Options basics

Picking the perfect option strike

When it comes to option trading it is not straight forward as there are various factors which needs to be considered before buying or selling an option. One of such important factor is the strike price of an option. Before getting into the details first we would like to start with a basic thought depending […]

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Open interest basics

Options OI basics

The open interest in options is a bit different in its interpretation part just because the inherent nature of the option instruments in terms of time decay and volatility cool off puts option sellers at an advantage if they have big enough capital to play with and take advantage of these factors to their side. […]

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Open interest basics

Futures OI basics

Open interest can help futures traders understand whether the market is gathering strength or losing momentum. Wondering how? Have a look at the following scenarios and you could get in the right way of reading the open interest. Here are the potential scenarios in markets and what they suggest. Fresh Longs: If prices are rising […]