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option strategies with examples

Option Strategies- what is Iron Condor Strategy

Option Strategies- what is Iron Condor Strategy

These are captivating times we are living in, especially if you are an alternatives trader in India Starting 1st June 2020, NSE’s new margin framework is live, which essentially brings down the margin requirement for the hedged position.

What is a hedged position?

Like riding a bike without carrying a helmet. The risk of market-moving against your position, causing capital erosion is high. However, if you hedge your position, then the danger of losing capital reduces drastically. Now, think about this – if your capital loss is minimal, then it implies that the risk for your broking is also minimum right? Now, if the risk for the broking reduces, it also means the … Read the rest

Nifty Trading strategies for options

What exactly is an option trading strategy?

An option trading strategy is a hybrid combination of futures and options, or of two different options, that results in a product with defined risk, returns, or both. Option strategies are possible due to the unique nature of options, which are volatile in nature.

Options strategies are generally classified into six categories, which are as follows:

  1. Bullish strategies
  2. Bearish strategies
  3. Moderately bullish strategies
  4. Moderately bearish strategies
  5. Volatile strategies
  6. Range bound strategies

Protective Puts, Covered Calls and Collars

These are the three most fundamental strategies that are employed on a regular basis. These three options strategies are simple to understand and execute in the F&O Market, despite the fact that they are part of … Read the rest