Mr. Jain is a commerce graduate born in 1979, trading in financial market since 2004 and a full time trader. He started his career as a subbroker, and has also done arbitrage in stock markets and as well as in commodity markets. He learnt coding skills to backtest the systems. Now, he does option buying and as well as option writing too. He has recently started Algo trading & totally focused on rule defined systems.
IN CONVERSATION WITH
Mr. Vivek Bajaj
The passion for data, analytics and technology is what makes Vivek Bajaj a financial market survivor. The journey as a market participant started in 2002 when the first trade was executed in the options contract of ITC. Life was simpler and easier during that time. Since then technology and Big data have taken over totally. As an early adapter to the complex tools, Kredent was formed to capitalise on the opportunities. He is co-founder of StockEdge and is committed to bring simplicity in the complex world of market data. He is a Chartered Accountant, Company Secretary and an MBA from IIM Indore. He is a part of various committees of exchanges and regulator and he has been an active contributor in the evolution of Indian Derivatives Market.
About this Face2Face:
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 get a new perspective to options derivatives trading and investing. To begin this video, we will start with an introduction to Mr. Jain's life as a trader and investor, and the lessons he has learnt from the stock market.
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.
After this, we will begin our technical discussion. Here we will discuss a system that will be based on Mr. Jain’s teachings - a system he has tested and perfected to make sure that it works in the stock market aptly. After discussing why his system works for all retail traders with a prop desk mindset, we will discuss the basics one must remember before they step into 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 on, and how they work. Following this, we will discuss how some of these strategies work - like 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.