In this video of the Face2Face series, we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, who will be discussing the basics of options selling in the stock market with the help of rule-based, emotion-free trading with the help of Mr. Amit Jain, an experienced trader and investor who is focused on options selling with rule-based systems.
Options selling is considered a very complex topic, however, with rule-based trading, we can gain a new perspective on derivatives trading and investing. From broking in the various segments of the stock market to finally landing up on the basics of using rule-based systems to trade with options, we will look at the various events which affected Mr. Jain's trading journey and the methods he used to become a trading expert with the combination of both algorithmic trading and options trading.
Further, the technical explanation goes in-depth on the method that Mr. Jain tested and perfected to make sure it works effectively on the stock market. We examine why his approach is appropriate for retail traders with a prop desk mentality and talk about the fundamentals that people should be aware of before becoming involved in options and futures trading. With a brief discussion on the various types of option writing strategies, we will follow the hypothesis upon which this system is built and how they work. Following this, we will discuss how some of these strategies work - like a long and short straddle, strangle etc. Next, with a trading platform, we will discuss how Mr. Jain plays out his rule-based system, along with the help of the VIX or the Fear index of the Indian stock market. We will see how trades are executed with this system with some practical examples which cover the various situations we can face while implementing this system.
Watch this video to gain valuable insights into options selling and learn how a rule-based approach can enhance their trading strategies.