Options Trading for Beginners (Part 2): Risk management, and avoiding common pitfalls Options Trading for Beginners (Part 2): Risk management, and avoiding common pitfalls In Part 1, we explored the foundational concepts of options trading and highlighted some common pitfalls to avoid. Now, let's delve into some basic concept of risk management techniques, and how to avoid mistakes. DSIJ Intelligence / Sunday, March 31, 2024 0 1696 Article rating: 3.9 In Part 1, we explored the foundational concepts of options trading and highlighted some common pitfalls to avoid. Now, let's delve into some basic concepts of risk management techniques, and how to avoid mistakes. Read more
Market watch: What does the Futures and Options market suggest about trade on January 23? Market watch: What does the Futures and Options market suggest about trade on January 23? The Nifty 50 put call ratio (PCR) closed at 1.04 for the day. DSIJ Intelligence / Monday, January 22, 2024 0 3803 Article rating: 3.8 The Nifty 50 put call ratio (PCR) closed at 1.04 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. Read more
Solving the puzzle for setting a stop loss for an option trade! Solving the puzzle for setting a stop loss for an option trade! Options are time-sensitive, and their value erodes with each passing day due to time decay. Placing stop-loss orders on a closing basis could result in more significant losses. DSIJ Intelligence / Friday, October 20, 2023 0 3246 Article rating: 3.9 Determining the appropriate stop loss level in options trading can be a complex and critical aspect that traders need to solve or figure out. Read more
Must-Know for New Derivative Traders: Do Out-of-the-Money (OTM) Options Really Expire Worthless? Must-Know for New Derivative Traders: Do Out-of-the-Money (OTM) Options Really Expire Worthless? What happens on the expiry day to OTM Options? DSIJ Intelligence / Monday, June 19, 2023 0 2280 Article rating: 3.7 Of course, you may notice an apparent value of Rs 0.05 for OTM options close to expiry, known as the Last Traded Price (LTP). However, it's crucial to distinguish LTP from the actual value of the option on expiry. Read more