derivatives trading in options
Post on 20-Jan-2015
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Derivatives Trading in “Options”
Prof. Manoj Kumar
Email: profkumar@hotmail.com
Ph: +91 - 8826716123
Did you know?
There are ONLY FOUR BASIC types of Options Trading Strategies, and
Many other strategies can be developed based upon those FOUR BASIC STRATEGIES
Development of advanced options trading strategies
Would surely depend upon…
1. Your Proficiency Strategies are divided into following
categories of TRADERS, of course, based upon proficiency:
→ For NOVICE TRADERS
→ For INTERMEDIATE TRADERS
→ For ADVANCED TRADERS
→ For EXPERT TRADERS
1. Your Proficiency Strategies for NOVICE TRADERS:
→ Long Call
→ Long Put
→ Covered Call
→ Synthetic Call
→ Synthetic Put
1. Your Proficiency Example Strategies (out of some sixteen
appropriate) for INTERMEDIATE TRADERS:
→ Bear Call Spread…
→ Bull Put Spread….
→ Calendar Call…
→ Collar…
→ Diagonal Call…
→ Short Call Butterfly…
→ and more…
1. Your Proficiency Example Strategies (out of some twenty
appropriate) for ADVANCED TRADERS:
→ Bear Call Ladder…
→ Bull Put Ladder…
→ Calendar Put…
→ Call Ratio Backspread…
→ Long Call Condor…
→ Put Ratio Backspread…
→ Short Iron Butterfly…
→ and more…
1. Your Proficiency Example Strategies (out of some seventeen
appropriate) for EXPERT TRADERS:
→ Guts…
→ Long Put Synthetic Straddle…
→ Short Call Synthetic Straddle…
→ Strap…
→ Strip…
→ Modified Put Butterfly…
→ and more…
Important !!
All these strategies developed based upon
proficiency can be grouped together to
form further classifications…
2. Your Direction Second classification for development of
options strategies is DIRECTIONAL
based and are grouped accordingly
Bullish Strategies
Bearish Strategies
Direction Neutral Strategies
3. Volatility Third classification for development of
options strategies is VOLATILITY based
and are grouped accordingly
High Volatility Strategies
Low Volatility Strategies
4. Risk / Reward Fourth classification for development of
options strategies is RISK/REWARD
based and are grouped accordingly
Capped Risk Profile
Uncapped Risk Profile
Capped Reward Profile
Uncapped Reward Potential
4. Type Finally, some of the options strategies
are based on the types of benefits
traders are looking for:
Strategies that enable them to
“Capture A Regular Income”
Or, the strategies that are for
“Capital Gains”
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