Options Spread Trading
Over 14 years of experience in Stock trading with specialization in volatility-based Option trading. He is an expert in non-directional option strategies execution and management. Enabler of the Free Options analysis “OptionsOracle” software, the only premier tool used by option traders widely in Indian Market for designing their strategies, management and tracking. Active Option Strategy Trainer with over 700+ participants trained across India and other parts of the world. He is a globetrotter and adventure enthusiast and has worked in India, UK and USA. His hobbies include swimming, bungee jumping, skydiving, Ice skating, roller skating and is a certified scuba diver.
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 instalment of the Face2Face series, we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, in a conversation with Mr. Santosh Pasi, a trader who will highlight the essentials of options trading, and more importantly, options spread trading.
Mr. Pasi has years of experience in options trading and options technology, and in this video, we will explore how the technology of trading options has evolved over the years, following which we will touch upon the basics of options spreads and how Mr. Pasi trades on them.
Since this discussion was carried out during the live market, we will see the practical justification of Mr. Pasi’s teachings in the stock market.
We will start the video with Mr. Pasi’s background and life, and the events that led him to explore the share market, followed by him finally choosing to work with call and put options extensively, and finally trading on options spreads.
We will next start our conceptual discussion with the kind of approach that Mr. Pasi uses while approaching the options segment in different situations and ho he chooses between being an options buyer or seller in any trade. We will explore the different factors that can affect this decision of choosing the buying or selling side.
Next, we will discuss when we should buy a put options or short a call options, and how factors like volatility and open interest can affect this decision. Mr. Pasi will show us how this works through the OI data on the NSE website and how we can practically apply his theory behind calls and puts in a volatile market to our own trading decisions.
Next, we will discuss two important questions that might arise in the mind of a trader after learning about this concept: when do we exit our trade, and how do we manage our risk to ensure that we can continue trading with as much safety and capital preservation that we need?
Mr. Pasi will discuss the various factors which will affect this decision of his and the multiple data he checks to justify his decisions, like the Greeks, OI data and some technical indicators as well.
Now, since we are holding this discuss in a live market, Mr. Pasi will pick out an example from the market to show how he will enter, exit and execute a trade with his approach to the stock market.