Low VIX & low premium. Movement is like 20 VIX now.
Now skilled trader will earn.

I found two cash stocks which are near 52 weeks high in this correction.
JK paper and GHCL.
Both MCAP under 5000 cr.
Annual Profit more than 500 cr.
@Atulsingh_asan
He can further guide.
I have not invested yet.

How to avoid blowing up your account trading OPTIONS
(A thread)

1. Becoming consistently profitable trading OPTIONS takes practice and discipline.

2. Trading Options is similar to trading stock, YOU are in control of your profits per movement (up or down) in the underlying.

3. Buying a CALL- You pay a Premium price based on the STRIKE price you choose. With a call you get paid when the stock moves up

4. Buying a PUT- You pay a premium price based on the STRIKE price you chose. With PUTS you get paid when the underlying stock price goes down

5. Premium price goes up when the trade moves in your favor (call betting upside, put betting downside movement)
6. The goal is to buy a premium and resell it for a higher premium when the trade works
7. Like basic stock trading, you want to scale in and out of your position

9. People see cheap premium and tend to pick those, not knowing in reality they are risking more!
10. Don’t let the premium price dictate which strike you chose.. the higher the premium, the less risk/ volatility that trade will see!

11. When day trading options, you are essentially trading DELTA
12. Delta is what your premium will pay per dollar movement in underlying.
Ex. Delta .5 pays 50c per dollar movement in underlying
So if original cost =50$ premium,
1$ move up in underlying pays .50 or 100% trade

**Options Strategies Broaden Your Range of Trades**

1/n

Going Long Calls/Puts are the plays most retail traders use (equity trader strategies, higher leverage/lower margin)

The beauty of options is there are many more ways to profit, beyond pure directional bias.

#MomoTwit

2/n *Quick Review of Options*

Options are a derivative contract which allows the holder to buy/sell the underlying at a determined price by a certain expiration date.

Options Greeks (delta, gamma, vega, theta) affect contract P/L based on changes in volatility, time, & price.

3/n -Covered Calls-

If you have 100 shares of XYZ stock, you could short a call contract, w/ your shares as collateral. Strategy allows you to collect premium.

Either your call expires worthless or it closes ITM. If ITM you sell the shares at the strike price of ur short call

4/n Generally, you employ a covered call strategy when you have a near/short term neutral/bearish view on your position. Thus this allows you to collect money/premium or hedge when the stock is not rallying.

5/n -Straddle-

This is where the trader buys a call & put at the same strike price and expiration date. You would do this when u expect a large move outside the expected range in *either* direction

You will lose on this trade if the stock does not move/stays within a range.

@niki_poojary @buzz_chronicles save

@buzz_chronicles @buzz_chronicles save as options

I keep getting asked about what books to read to learn about Options. My compilation

Beginners Options Books:

1) The Bible of Options Strategies - Guy Cohen
2) The Financial Times Guide to Options - Lenny Jordan
3) Simple Options Trading Formulas - Billy Williams

Books on Options Greeks:

1) Trading Options Greeks - Dan Passarelli
2) How to Calculate Options Prices & their Greeks - Pierino Ursone

Books on Options Volatility Trading:

1) Option Volatility & Pricing - Sheldon Natenberg
2) Option Trading: Pricing & Volatility Strategies & Techniques - Euan Sinclair
3) The Volatility Smile - Derman & Miller

Books on Options Trading:

1) Trading Options At Expiration - Jeff Augen
2) Options as a Strategic Investment - Lawrence Williams
3) Positional Options Trading - Euan Sinclair
4) Options Spread Strategies - Tony Saliba
5) Options Strategies for Directionless Markets - Tony Saliba

Other important Options Books:

1) Options, Futures & other Derivatives - John Hull
2) Options Trading Strategies - Scott Danes
3) Covered Call for Beginners - Freeman Publications