Eg: I have 3l capital with 3k exposure per trade and 5 trade at a time, making 5% exposure max.
Please help on stock/indices selection process?
What should I rely on, Indicators, IV, historic data, OI, OC, what what what??? what should be my selection procedure?
Are there any specific techinals I should look? or price movement?
What is the home work i should do a night before I take the trade?
My priority of trading, Intraday, swing, positional(strategy) and Investment(hopefully someday, somewhere… Please keep in mind while answering the question.
Market is trending up and the call price are increasing exponentially but put price is not coming down in similar proportion .
Market is trending up and the call price are increasing linearly and also put prices are decreasing fairly compensating the increase in the call price
Question : Is there a way to know which of the above two situation is existing (for eg using Iv to know which of above two situation the market is in )?
Also when these two situation occurs ? (e.g. 1st one is implemented using Algos by market makers to always keep the price of straddle above minimum limit , 2nd one is when algos are not involved in options )
Yes, In India auto execution is not allowed for retailers by regulators, they define Auto trading as where order is generated and executed without manual intervention, so if order is generated based on some signals and before it is released to exchanges, human intervention is required.
The regulatory framework about margins in India is about to undergo a huge change. This I believe will usher in an era of unprecedented retail participation in the derivative markets
You can, as long as that limit price is available in the market.
But I would not recommend it. Most experienced traders avoid trading the open. It is a complete crapshoot. And option prices can be anywhere on options. So unless you are fairly experienced, and very sure of what you are doing, do not trade the open.
If you are trading short time frame, here is what I would do
Look at candlesticks and volume charts of F&O stocks
Volume and volume profile matters a lot
Short list some three things you will follow for deciding entry - Can be moving averages, candles etc (which is what I use)
Look at OI, general direction of the index etc only as an additional data point. OI is never a good standalone thing, especially in stocks. Underlying volume is the king here.
Enter if there is an entry by way of confirmation of a support or resistance, which is confirmed by price action (big volume candles, signals, wicks, etc)
USDINR is a good entry point for beginners. Bank nifty is the next cheapest alternative. Single stocks are pricy. But if the margining systems in India are going to change soon, this would not matter. You can do spreads for real cheap. Let us hope that happens
Directional
If you want directional trading, go for the strike with the highest delta, that is a deep in the money strike. The only catch is liquidity, Usually multiples of 500 are liquid.
IV play
In this case you are betting the IV will fall. So go for the strike with the highest Vega. Vega is a measure of how much the option price will change with the change in IV. This is usually the ATM strike
Theta
Trick heading. There is no Theta intraday
On a serious note, there is some Theta intraday on the expiry day, but not really worth playing that game. I like playing expiry with sime idea of support and resistance and shorting options directionally. Example: If I think BNF wont go above 32500, I will sell 32500 CE
After I came to know that regulators are planning to stop the additional leverage facility for Intraday , I started looking for other opportunities in the market and thus started taking interest in options trading. To my surprise I am actually performing better in my new field of trades probably due to my long experience in day trading , which gave me an extra edge. And I find option chain analysis really interesting. Thanks to the regulators who literally forced me to enter the options market. I have a question- being a zerodha kite user, is the sensibull " full option chain chart " free for lifetime ?
It might be. It doesn’t cost them anything. Anyways, for free version, updation is not instant unlike pro.
Also, option chain data is easily available on net. It’s not Sensibull USP. Though Sensibull has other better data and tools
Most old option traders are preferring Nse option chain chart , may be because they are very used to it. Once your eyes are set and adjusted to a particular style of start , you start preferring it only. But what I found is 1) Nse and many other similar option chain charts are not “auto refreshing” 2) Not all charts are providing change ( LTP and OI) in percentage . 3) Not all charts are providing theta and vega numbers 4) sensibull option chain chart is more eye friendly with those “highlighted” marks on the chart. 5) No instant updation is better than No updation . Therefore I am, as of now preferring to watch sensibull option chain chart hence curious to know if it is really free forever for all kite users.
