Why sell options when the implied volatility (IV) is higher and buy when the IV is lower❓
A Thread 🧵
(01/17)
#stockmarket #trading
What is IV?
Implied volatility (IV) is a metric used in the stock market that reflects the market's expectations of future volatility of a stock's price. (02/17)
Selling options when implied volatility (IV) is higher and buying options when IV is lower is a common strategy in options trading because it leverages the pricing dynamics influenced by volatility.
Here's a detailed explanation of why this strategy is used: (03/17)
We traders, always make our trading so complicated & in live market that results into losses.
Simple range breakout strategy to catch Index trades.
A Thread 🧵
(1/14)
#StockMarket #trading
@kuttrapali26
✨What is range bound market?
When the stock prices generally flow back and forth near the old highs and then fall back to the recent lows.
When we mark such highs and lows, we find a range, and when the price move between that range, it can be termed as range bound. (2/14)
✨What is Range breakout?
When the price breaks the range which we marked earlier, it means now the price is no more trading in thein congestion area, then it can be termed as range breakout.
After such range breakout, we can see good price movement in that particular direction. (3/14)
An ETF where we can park our cash – As an alternative to keeping funds in your trading account. (2/15)
This Exchange Traded Fund exclusively invests in the overnight money market, providing a high level of safety and liquidity.
It is monitored by the RBI to ensure there are no challenges in terms of repayment or liquidity. (3/15)
There are various ways of investing, and two of the most popular are mutual funds and Exchange-Traded Funds (ETFs).
Both are pooled funds that allow investors to access professionally managed funds that offer diversification in a wide variety of asset classes and industries. 2/20
MFs includes stocks, bonds, and money market funds that are bundled together in a single mutual fund. They offer investors a way to own a diversified portfolio of investments at a lower price which is not possible if they own each instrument separately. (3/20)
Step 1:
Identify the stocks which are in short term downtrend phase.
Let’s understand it with the chart of Wipro.
Date: Feb 2021
Here we can see, stock is in short term Correction/ Downtrend. (2/13)
Step 2:
Draw a trendline by connecting all swing highs & wait for the price to break the trendline.
The Trend Line Breakout technique helps you time your entry in a trending market. (3/13)