I am confused about Options IV. I would really appreciate if you guys help me to clear the confusion.
What I read is,
IV is a variable in option pricing formulas that shows how much an underlying asset can fluctuate between now and the option's expiration.
Also, other definition...
But any specific reason that IV (ATM) for PNB is always more than 50? Why it is so high even there is not much price volatility?
Also, what should be the approach when price is high and IV is also high and price is low and IV is also low?
I am studying Price and IV relationship. I am studying PNB and trying to compare price with its IV. I read that, whenever price is high, IV will be low and vice versa.
General Trading setup:
If Price is high and IV is low then CE and PE will be cheap. In such scenario buy PUT.
I am learning fundamental analysis. Want to invest monthly in midcap stock. I was using screener.in for fundamental data. Apart from normal criteria like pe ratio, book value, face value how can I use balance sheet, total asset, liabilities and past cash flow to select stock.
I started this thread when I was trading intraday on nifty option. But after continueous losses and after traderji members valueable suggestion started delivering them. Now my losses are reduced and slowly recovering them.
I tried to find out the answer of "Impact of dividend on stock Call Option" by searching in google. But didn't understand properly. So, best place is ask to experienced traders in traderji, to get answer in simple words.'
I have bought one lot of TATASTEEL AUG 280CE at price 3.70rs...
How you decide which stock to buy? I bought Union Bank 230CE at 2.30rs and exited at 1.20 in panic in first 30mins. I read all the moneycontrol and econimictimes.com news that sell union bank, so thought to book minimum loss but after that it went to 2.40. Lost 2300rs per lot. Need to learn many...
Ok, After searching whole day and reading different articles, I understood below. Hope it will help to newbie in options like me and expert can correct me if anything is wrong,
Below description is for CALLs, for PUT consider vice versa true.
Delta - It is important factor to decide/increase...
Thanks a lot sir. I was going through this forum and also searched on google about greek and time decay. I got few links where they were talking about Delta, Theta..... But I am not getting clear article that mentions what is the perfect time to buy options at particular premium. And also, due...
Well said Nilesh. I started Options positional trading and result is much better than intraday options trading. But, I have few things that needs to be cleared, like greek, time decay. I am not understanding how premium (strike price) is reduced as time approached contract last date.
Zerodha's brokerage structure is very good. But seems they still need to work hard on infrastructure. There softwares are not stable. I am also facing issue every day while trading from PI or even kite. Every time they just answer that it is your network issue but today I tried on another laptop...
Not sure if you also facing this issue or not. I am facing lot of connectivity issue with Zerodha's PI software. Below are main issues,
PI gets disconnected frequently. Right bottom's two symbols turns red. After that, has to close PI and start new session.
Most of the times, PI...