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Technical Analysis Use करके Options में कैसे Trade करे ? | Options Trading - 8

In the 40th episode of this series, Mr. Vivek Bajaj shows how to use technical analysis for option trading to identify market patterns. In addition to guiding viewers through the process of creating an effective watchlist, the video offers insights into selecting suitable stocks for options trading through the NSE website. The focus is on making it easier to use technical analysis to identify a stock's trend and then create options trading strategies. This valuable session caters to those starting their options trading journey, offering essential insights into options trading technical analysis.

What You Will Learn

With an emphasis on advanced strategies, Vivek Bajaj continues his discussion on options trading. He talks about a number of advanced options trading strategies, including the Ratio Spread, Butterfly, Condor, Iron-Butterfly, Iron-Condor, Strip, and Strap. These strategies give traders a variety of approaches to the options market by utilizing numerous strike prices and combinations.

Vivek underlines the significance of learning the fundamentals of options trading before exploring more complex strategies. In order to lower margin needs, he advises viewers to think about spread trading, which is taking one position and selling another.

In this particular session, he will not delve into the intricate details of advanced strategies. For this, he mentions a course on Advanced Options Strategies by Chetan Panchamia, where the viewers can gain an in-depth understanding. He also highlights the free resources available on the eLearnOptions platform, where one can explore various aspects of options trading.

After that, he moves into a hands-on demonstration of how to use the NSE's daily market report (Bhav Copy) to find stocks with active options. Using volume and value as criteria, he outlines how to create a watchlist of the top 30 stocks with active options.

Vivek then went on to demonstrate how to analyze a stock's two-hourly chart in order to identify its trend. He uses the example of Reliance Industries to demonstrate this process and suggests bullish strategies, including purchasing call options, selling put options, or using call bull spreads.

Using examples from other stocks, including Aisha Motors, he continues the conversation by demonstrating how to implement bullish strategies based on technical analysis and market outlook. He discusses the idea of credit put spreads and emphasizes how crucial it is to take into account variables like delta, theta, vega, and gamma when developing option strategies.

Vivek also discusses how option strategies are affected by Greeks (delta, theta, vega, and gamma). Theta stands for time decay, vega measures sensitivity to changes in implied volatility, and gamma shows the rate of change of delta. Delta reflects how sensitive an option's price is to changes in the underlying asset.

Vivek uses the example of Tata Motors to demonstrate a bearish strategy, highlighting the flexibility of options in applying both bullish and bearish views on a stock. In order to protect oneself against market swings, he emphasizes the value of maintaining a diversified portfolio that includes positions in both bullish and bearish strategies.

To sum up, this session covers a wide range of advanced options trading strategies, including hands-on examples of how to form market views, and offers advice on how to create a watchlist of active stock options. He advises viewers to progressively improve their options trading abilities by exploring intricate concepts with the use of materials and courses available on the website Elearnmarkets.com.

All things considered, this 40th episode of the Learn2Trade series is an invaluable guide for traders who want to deepen their understanding of the intricate yet fascinating world of options trading. With Vivek's focus on real-world application and ongoing education, viewers will be better equipped to understand the options market.

Frequently Asked Questions (FAQs)

Q1. What is the significance of technical analysis for options trading?

When trading options, technical analysis involves analyzing historical price charts and market trends to help traders make well-informed choices. It helps traders in determining entry/exit points, potential reversals, and trends.

Q2. How to learn option trading step by step?

Understanding technical analysis and options fundamentals is the first step towards learning option trading step by step. Discover materials that are appropriate for beginners and learn about topics such as Greeks (delta, theta, vega, gamma). Consider taking online options trading classes for an in-depth understanding. Create a watchlist using technical analysis to identify patterns for profitable trading methods. To handle market fluctuations, place an emphasis on lifelong learning and maintain a balanced portfolio that includes both bullish and bearish positions. This video offers insightful advice for anybody stepping into the complex realm of options trading.

About Mr. Vivek Bajaj

Vivek bajaj image

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.

Learn2Trade Series: Episode 40

In the 40th episode of this series, Mr. Vivek Bajaj shows how to use technical analysis for option trading to identify market patterns. In addition to guiding viewers through the process of creating an effective watchlist, the video offers insights into selecting suitable stocks for options trading through the NSE website. The focus is on making it easier to use technical analysis to identify a stock's trend and then create options trading strategies. This valuable session caters to those starting their options trading journey, offering essential insights into options trading technical analysis.

What You Will Learn

With an emphasis on advanced strategies, Vivek Bajaj continues his discussion on options trading. He talks about a number of advanced options trading strategies, including the Ratio Spread, Butterfly, Condor, Iron-Butterfly, Iron-Condor, Strip, and Strap. These strategies give traders a variety of approaches to the options market by utilizing numerous strike prices and combinations.

Vivek underlines the significance of learning the fundamentals of options trading before exploring more complex strategies. In order to lower margin needs, he advises viewers to think about spread trading, which is taking one position and selling another.

In this particular session, he will not delve into the intricate details of advanced strategies. For this, he mentions a course on Advanced Options Strategies by Chetan Panchamia, where the viewers can gain an in-depth understanding. He also highlights the free resources available on the eLearnOptions platform, where one can explore various aspects of options trading.

After that, he moves into a hands-on demonstration of how to use the NSE's daily market report (Bhav Copy) to find stocks with active options. Using volume and value as criteria, he outlines how to create a watchlist of the top 30 stocks with active options.

Vivek then went on to demonstrate how to analyze a stock's two-hourly chart in order to identify its trend. He uses the example of Reliance Industries to demonstrate this process and suggests bullish strategies, including purchasing call options, selling put options, or using call bull spreads.

Using examples from other stocks, including Aisha Motors, he continues the conversation by demonstrating how to implement bullish strategies based on technical analysis and market outlook. He discusses the idea of credit put spreads and emphasizes how crucial it is to take into account variables like delta, theta, vega, and gamma when developing option strategies.

Vivek also discusses how option strategies are affected by Greeks (delta, theta, vega, and gamma). Theta stands for time decay, vega measures sensitivity to changes in implied volatility, and gamma shows the rate of change of delta. Delta reflects how sensitive an option's price is to changes in the underlying asset.

Vivek uses the example of Tata Motors to demonstrate a bearish strategy, highlighting the flexibility of options in applying both bullish and bearish views on a stock. In order to protect oneself against market swings, he emphasizes the value of maintaining a diversified portfolio that includes positions in both bullish and bearish strategies.

To sum up, this session covers a wide range of advanced options trading strategies, including hands-on examples of how to form market views, and offers advice on how to create a watchlist of active stock options. He advises viewers to progressively improve their options trading abilities by exploring intricate concepts with the use of materials and courses available on the website Elearnmarkets.com.

All things considered, this 40th episode of the Learn2Trade series is an invaluable guide for traders who want to deepen their understanding of the intricate yet fascinating world of options trading. With Vivek's focus on real-world application and ongoing education, viewers will be better equipped to understand the options market.

Frequently Asked Questions (FAQs)

Q1. What is the significance of technical analysis for options trading?

When trading options, technical analysis involves analyzing historical price charts and market trends to help traders make well-informed choices. It helps traders in determining entry/exit points, potential reversals, and trends.

Q2. How to learn option trading step by step?

Understanding technical analysis and options fundamentals is the first step towards learning option trading step by step. Discover materials that are appropriate for beginners and learn about topics such as Greeks (delta, theta, vega, gamma). Consider taking online options trading classes for an in-depth understanding. Create a watchlist using technical analysis to identify patterns for profitable trading methods. To handle market fluctuations, place an emphasis on lifelong learning and maintain a balanced portfolio that includes both bullish and bearish positions. This video offers insightful advice for anybody stepping into the complex realm of options trading.

About Mr. Vivek Bajaj

Vivek bajaj image

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.

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