Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 128 views

    Summary Class 3 Derpo

    Uploaded by

    laale dijaan
    The document summarizes a class on options trading strategies. It discusses analyzing option chains and reading open interest data to identify support and resistance levels. It also covers maximum pain, put/call ratios, and IV percentile. Strategies are classified as regular, reverse, or mixed, and examples of each type were entered into including an ulta ratio call spread, iron condor credit spread, and bull call spread. The greeks for each strategy are also provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Summary Class 3 Derpo

    Uploaded by

    laale dijaan
    128 views2 pages
    The document summarizes a class on options trading strategies. It discusses analyzing option chains and reading open interest data to identify support and resistance levels. It also covers maximum pain, put/call ratios, and IV percentile. Strategies are classified as regular, reverse, or mixed, and examples of each type were entered into including an ulta ratio call spread, iron condor credit spread, and bull call spread. The greeks for each strategy are also provided.

    Original Description:

    ggh

    Original Title

    summary class 3 derpo

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes a class on options trading strategies. It discusses analyzing option chains and reading open interest data to identify support and resistance levels. It also covers maximum pain, put/call ratios, and IV percentile. Strategies are classified as regular, reverse, or mixed, and examples of each type were entered into including an ulta ratio call spread, iron condor credit spread, and bull call spread. The greeks for each strategy are also provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    128 views2 pages

    Summary Class 3 Derpo

    Uploaded by

    laale dijaan
    The document summarizes a class on options trading strategies. It discusses analyzing option chains and reading open interest data to identify support and resistance levels. It also covers maximum pain, put/call ratios, and IV percentile. Strategies are classified as regular, reverse, or mixed, and examples of each type were entered into including an ulta ratio call spread, iron condor credit spread, and bull call spread. The greeks for each strategy are also provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    Summary of Class 3 – DERPO Trading – 8th April 2020

    ___ Sir’s view on markets for today

    Today, we started with Option Chain Analysis wherein we understood basic principles as follows:
     More than stock options, Index options are relevant for analysis.
     While doing such analysis, one should think from Option Seller/Writer’s standpoint as
    Option sellers are smarter considering the probability of options.

    We understood how to read the Open Interest data in Sensibull and understood the following:
     For Put option, strike price where OI is maximum shall act as crucial Support level; and
     For Call option, trike price where OI is maximum shall act as crucial Resistance level.

    Further, we understood Maximum Pain i.e. Strike price at which Option buyers will suffer or feel
    the pain if the premium does not move in their favor.

    Then, we understood Put Call Ratio i.e. Volume of Put/Volume of Call which is looked from
    Option Sellers standpoint.

    IV Percentile – Measure of IV that compares current IV to its own IV in the past.

    Furthermore, we understood that strategies in relation to Options Trading can be classified in 3


    buckets:

    1. Sidha Saudha;
    2. Ulta Saudha; and
    3. Mix Saudha

    Sidha Saudha means buying options, Ulta Saudha is Selling options and Mix Saudha is doing
    both.

    Sidha Saudha is usually entered considering Gamma is positive, Theta is negative and Vega is
    positive.

    Reverse of Sidha Saudha, is Ulta Saudha.


    So today, considering the today’s view, we have entered into 3 strategies which have been
    tabulated as under:

    # Name of the Strategy Strategy


    th
    1 Ulta Ratio Call Spread 9 April 2020 Expiry:

    8800 CE – Buy (1 lot);


    9000 CE – Sell (3 Lots)

    Greeks:
    Theta +ve, Gamma-ve and Vega -ve

    2 Iron Condor Credit Spread 9th April 2020 Expiry:

    8900 CE – Sell (1 lot);


    8600 PE – Sell (1 lot);
    9100 CE – Buy (1 lot); and
    8300 PE – Buy (1 lot)

    Greeks:
    Theta +ve, Gamma -ve and Vega -ve

    3 Bull Call Spread 9th April 2020 Expiry:

    8900 CE – Sell (1 lot);


    9000CE – Buy (1 lot)

    Greeks:
    Theta -ve, Gamma +ve and Vega +ve

    Further, we have observed the Iron Condor Credit spread being put in Blitz Trader i.e. basically
    algo trading.

    You might also like