It may give up more value as theta is also involved.
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@vishaln129 I consider 1 to 1.5% loss in a single day acceptable. If i incur loss in the evening session, i exit trading for the day. If it is in morning session and if i find a very good opportunity, then i will trade with a 1/4 th of my usual position. If that trade also goes w...
@vishaln129 Do you mean 70 % probability and 1.2% draw down ?
In my opinion, RR outweighs probability of profit in any trade. Suppose you have a strategy that always gives high probability of success but has poor rr. Then one trade might be enough to take away the profit of many good trades. However, the downside to high rr and low probabil...
In my opinion, RR outweighs probability of profit in any trade. Suppose you have a strategy that always gives high probability of success but has poor rr. Then one trade might be enough to take away the profit of many good trades. However, the downside to high rr and low probabil...
No. Options are derivative instruments. When nifty of bank nifty moves by 1 point, options at various strike points move differently. This is determined by the delta of the option. For eg, an At the money option(ATM) having delta of 0.5 will move by 0.5 points for every 1 point m...
For drawing fib retracement during uptrend, connect low point to high point of the swing. SImilarly, for down trend, connect high point to lowest point in the swing.
Here is my view.
Looking at the price action, we can see that the stock is in a short term uptrend. This can be verified by the lower lows and higher highs created from price point 188 to 195. There are longer green candles and shorter red candles meaning bulls are strong compar...
@dhruv4076 It is used to identify short term trend. If price is above 20 EMA it is uptrend and if price is below 20 ema, short term trend is down
@dhruv4076 EMA is exponential moving average.
Penny stocks because of their low price seems an attractive proposition for investment. But they are prone to manipulation by insiders, trading firms etc because of their low price. Most of these companies have poor fundamentals and low growth prospects. Due to this, there is a v...
Instrument in trading vocabulary means what is traded. It can be future, options, stocks or any other derivative product.
The numeral used before the EMA represents the period used for the computation. In this case it is 20, meaning closing price of previous 20 candles are used for the computation. From this you can see that the 20 ema reflects the price trend of the previous 20 candles. Thus it rep...
Ema stands for exponential moving average. Due to the way in which it is computed, the exponential moving average follows the price a lot closer than the simple moving average which is just the average of the price for that period. The numeral used before the EMA represents the p...
You will get profit on the margin executed for trading. In your example, you will get profit on the margin used for purchasing 3 stocks.
Institutions usually involving in trading are pension funds, insurance institutions, hedge funds and other trading firms. They usually have a lot of money for trading and investments. There is a common wrong belief that institutions are out there to get money from retail investor...
Around 200K contracts are open at strike 17400. That means many sellers think that market may not go above 17400 since it is CE. It gives no indication that market might move down. Remember that the option seller makes money via decay even if market stays sideways
@harrypill Also one more thing i noticed is that the PE price has not gained because it hasn't be traded lately. What we are seeing is the last traded price. Also check out the bid ask prices.
This is one of the problems of trading in stock options.
@harrypill There is also theta of put to be taken into consideration. The PE loses its time value as it nears its expiry. Actually when i look at your positional delta (delta of future and PE with lot size combined), you stand to lose 100 rupees per point lost in the stock.
My in...