Agenda

Let’s keep it simple, in market there are people who want quick buck and some who would need monthly stable income.

A lot of my friends ask me as to what is the safest strategy in option trading to earn a 4% profit monthly?

I ask them normally what they mean by safest strategy

a) the strategy has a high win probability

b) the strategy is not open to unlimited loss

Now let’s go into details of strategy planning.

It can be called “Max pain iron butterfly plus iron condor strategy” Or simply ” Max iron” ( my own name) in simple terms.

1. Now we know only option sellers make money consistently and buyers only few big wins. That

Adx directional index indicator for catching the momentum

So most trading platforms actually have two different versions of the ADX indicator, which is where many people get confused when adding it to their charts. The first version of this indicator only has only one line on it, which is the ADX line itself. This version of the indicator can usually be found by simply clicking on “add indicator” and then searching for ADX.

The second version of this indicator has 3 lines, which are the ADX line, the Positive Directional Indicator (which can be abbreviated to +DI), and the Negative Directional Indicator (which can be abbreviated to -DI). Now to get this version of the indicator on your charts, you … Read the rest

What is Options Max pain Strategy?

What is Option Max Pain?

It is always seen that 90%+ options expire out of the money. Since most options buyers lose money in options trading, the price of the underlying stock somehow must be adjusted / manipulated to close in a way that benefits option writers at the time of options expiry. This is basis for Option max pain point where the loss incurred by options buyers is also termed as “Options Pain”.

How does Options Max Pain work?

On option expiration day, the underlying stock price often moves toward a point that brings maximum loss to option buyers. This is how the Option Max Pain work.

Options Traders can utilize this concept … Read the rest

Open Interest

If a buyer and seller come together and initiate a new position of one contract, then open interest will increase by one contract. Should a buyer and seller both exit a one contract position on a trade, then open interest decreases by one contract. However, if a buyer or seller passes off their current position to a new buyer or seller, then open interest remains unchanged.

Open interest is just the contracts that are created(buy of 1 lot and sell of 1 lot will give 1 Open interest) are created. If an options contract exists, it must have had a buyer and also for every buyer, there must be a seller since you cannot buy something that is … Read the rest

BankNifty weightage cpr strategy

The NIFTY Bank Index includes the most liquid and significant banking firms in India. It serves as a benchmark for investors and market intermediaries, capturing the capital market performance of Indian banks. The Index includes a maximum of 12 companies that are publicly traded on the National Stock Exchange of India (NSE).
The free float market capitalization approach is used to calculate the NIFTY Bank or BankNifty Index.

As on December 31, 2021 Constituents and Weightage

         Company’s Name                               Weight(%) 

1. HDFC Bank Ltd.                                           27.80
2. ICICI Bank Ltd.                                           22.62
3. Kotak Mahindra Bank Ltd.                         11.61
4. Axis Bank Ltd.                                              11.52
5. State Bank of India                                      11.45
6. IndusInd Bank Ltd.                                      5.91

Above six stocks are the main CONSTIUENTS of banknifty Total weightage … Read the rest

What are Options Greeks? how to use them for your favor?

Why should you consider Options Greeks? 

What is happening in the markets?

Normally, after a large trend has passed, there is a period of pullback or just plain old consolidation.

What happening in market nowadays is that Nifty has cooled off from 18,400 in recent months.

However, the last few weeks have been unusual in that the Nifty has been moving in large fluctuations, attempting to recover and get back on track before giving up.

Consolidations, particularly choppy ones like the ones we’ve been seeing for the past three weeks, can produce misleading signals. Vertical spreads, on the other hand, could come in handy with Out of The Money (OTM) options.

On a daily basis, the movements have also been relatively large. However, if we look … Read the rest