Learning Group -VIJAYWADA

[niftyoption]

AMBUJA CEMENT

 

[niftyoption]

CAIRN

 

[niftyoption]

ZEEL

 

[XRAY27]

 

[XRAY27]

"No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation." - Robert Rhea

 

[niftyoption]

EICHER MOTOR

 

[anilnegi]

Nifty option

thanks for all your charts, but in your chart you have not emphasize on price action rather you trade based upon trendlines, support /resistance, but for higher probability setup is it good idea to wait some price action near these lines???, your comment pls

anil negi

 

[praveen taneja]

NASA Satellite view of DIWALI ........

 

[niftyoption]

Nifty option

thanks for all your charts, but in your chart you have not emphasize on price action rather you trade based upon trendlines, support /resistance, but for higher probability setup is it good idea to wait some price action near these lines???, your comment pls

anil negi

Dear anilnegi ,

Please go through all my previous posts you understand my trading system ..

i am using price action in trading trend lines , support resistance lines are also part of price action trading , i also mention candle sticks for trading , again i have given my MM & Risk management Rules also, Based on individual risk apatite your position size change. in my back test in day trading it is failed , but positional you never trapped in a bear market .... i am totally against averaging in falling market ...

 

[Somatung]

Hi

Time for the weekly option lesson.

Until now we have seen a way from dear AW10 how to start with option trading. We also have seen a simple concept from our friend Healthry how to use any script and combine that with the option data we have to that specific script. Now if it comes to option trading, basic knowledge about the option Greeks are needed. Why? We can be right in our assuption about where the market could go, we even would have the right option like a call for a possible up move, but we still can lose our invested money when market not moves in the right time enough in our direction. Many got confused about that as there seems to be no logic behind it. But there is and what happens, happens because of the option Greeks. The most important option Greeks you have to have an idea about are: Theta, Delta, Gamma, Vega and Rho. All of them play a specific rule when it comes to option pricing. Dear Pratapvb has done some simple posts about those Option Greeks:

Over view about Option Greeks: http://www.traderji.com/options/92743-options-my-way-looking.html#post942004

Theta: http://www.traderji.com/options/92743-options-my-way-looking.html#post942026

Delta: http://www.traderji.com/options/92743-options-my-way-looking.html#post942045

Delta and OTM options: http://www.traderji.com/options/92743-options-my-way-looking.html#post942108

Gammma: http://www.traderji.com/options/92743-options-my-way-looking-2.html#post942111

Vega: http://www.traderji.com/options/92743-options-my-way-looking-2.html#post942376

Rho: http://www.traderji.com/options/92743-options-my-way-looking-2.html#post942377


I posted all those links, so in the future you can use them separately in case you forgot which one of those option Greeks does represent what or stand for.

As we now already have a basic Idea about how option can be traded, I recommend the beginners in option trading to try to write down a little trading plan for there own purposes with the information given until now in this thread. This exercise is needed, as you will need any way a trading plan when you want to start with real money in option trading. Later you can add or remove parts from this basic trading plan. As all noise is filtered out in the post from me about option trading, it should be quit easy for you to make such a little trading plan. For possible TA tools you use the information given from dear XRAY27 and dear Niftyoptions. Keep the trading plan as simple as you can = Only a few TA tools and only a few tools from the option side. If you do not have any idea about what a trading plan should be, kindly read the following template from Tim Wilcox http://www.trade2win.com/media/knowledge/tim-wilcox/T2W_Trading_Plan_Template_2005.pdf (You must have Adobe reader or Foxit reader installed on your system, other wise the link will not work)

Here some links about option pricing:

Understanding Option Pricing: http://www.investopedia.com/articles/optioninvestor/07/options_beat_market.asp

Black and Scholes Model: http://www.optiontradingtips.com/pricing/black-and-scholes.html

Binomial Model: http://www.optiontradingtips.com/pricing/binomial-model.html

Thats it for this time. Take care and enjoy the weekend / Dan