Skip to content

Category: F&O

In financial markets, futures and options (F&O) are derivative products that derive their values from an underlying asset, be it a stock or commodity. Through the stock exchange, two investors enter into a contract to buy or sell an underlying at an agreed price on a fixed date.

How to Use Implied Volatility in Options Trading: Strategies

Ratio Put Write-Neutral Strategy

Explanation Taking base assumption on implementing this strategy is of little/no volatility, the trader capitalizes on the limited profit that is in the form of premium received. Ratio put write
Read More
How to Use Implied Volatility in Options Trading: Strategies

Ratio Put Spread-Neutral Strategy

Explanation Put ratio spread is a multi-leg, neutral strategy with undefined risk and limited profit potential that involves buying in-the-money put options and selling more out-of-the-money put options of the
Read More
Short-Call-Option-trading-strategy

Diagonal Bear Put Spread-Bearish Strategy

Explanation A trader implements this strategy when he holds a neutral to somewhat bearish stance on the near-month expiry of the underlying but bearish on the long term, he will
Read More
Short-Call-Option-trading-strategy

Put Backspread Option Trading Strategy Nifty-Bearish Strategy

Explanation Put backspread options strategy also known as reverse put ratio spread is a bearish options strategy that is executed when a trader holds a bearish outlook on the underlying
Read More
Short-Call-Option-trading-strategy

Bear Put Spread Option Strategy-Bearish Strategy

Explanation A bear put spread strategy is executed when a trader is moderately bearish on the market. Execution of a strategy entails 1 long position in a higher strike price
Read More
Short-Call-Option-trading-strategy

Bear Call Spread Option Strategy-Bearish Strategy

Explanation Bear call spread strategy is used when an options trader expects a fall in the price of the underlying security. Executing a Bear Call Spread entails selling an equal
Read More
Short-Call-Option-trading-strategy

Covered Put Trading Strategy-Bearish Strategy

Explanation The covered put strategy is a bearish options strategy. The strategy involves shorting underlying stock in the expectation that the price of the security to fall and simultaneously selling
Read More
Short-Call-Option-trading-strategy

Protective Call Option Strategy-Bearish Strategy

Explanation Protective Call is a hybrid option strategy that involves trade in futures and options. This strategy is implemented by a trader to protect the short position in case of
Read More
Short-Call-Option-trading-strategy

Long Put Option Trading Strategy-Bearish Strategy

Explanation A long put option trading strategy is a single-leg option strategy used by a trader/dealer when he perceives market volatility with a bias towards the downside. To execute this
Read More
Short-Call-Option-trading-strategy

Short Call Option trading strategy-Bearish Strategy

Explanation A short call is a single-leg options trading strategy for traders who believe the market will trade bearish in the short term. Market players who use this strategy go
Read More