SIBASHISH ACHARYA’s Post

trading below 5400 now..👍 #sp500 read the below post by expanding it.

📚 𝐃𝐚𝐲 𝟕: 𝐖𝐡𝐚𝐭 𝐈 𝐋𝐞𝐚𝐫𝐧𝐞𝐝 𝐓𝐨𝐝𝐚𝐲 𝐟𝐫𝐨𝐦 "𝐎𝐩𝐭𝐢𝐨𝐧 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲 & 𝐏𝐫𝐢𝐜𝐢𝐧𝐠" 𝐛𝐲 𝐒𝐡𝐞𝐥𝐝𝐨𝐧 𝐍𝐚𝐭𝐞𝐧𝐛𝐞𝐫𝐠 📚 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐒𝐩𝐞𝐜𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐎𝐩𝐭𝐢𝐨𝐧 𝐓𝐞𝐫𝐦𝐢𝐧𝐨𝐥𝐨𝐠𝐲 🔍 Contract Specifications: 𝐓𝐲𝐩𝐞: • Call Option: The right to buy an asset at a specified price before a certain date. • Put Option: The right to sell an asset at a specified price before a certain date. • Futures Contract: An agreement to buy or sell an asset at a fixed price on a future date. Both parties have clear obligations. 𝐔𝐧𝐝𝐞𝐫𝐥𝐲𝐢𝐧𝐠: • The underlying asset is the security or commodity that is being bought or sold under the terms of the option contract. • For stock options, the underlying is typically 100 shares of stock. • For futures options, the underlying is uniformly one futures contract. • Example: Understanding Underlying in Options 𝐒𝐭𝐨𝐜𝐤 𝐎𝐩𝐭𝐢𝐨𝐧𝐬: • Call Option Example: If you have a call option with an underlying of 100 shares of XYZ stock, you have the right to buy 100 shares of XYZ at the strike price. • Put Option Example: If you have a put option with the same underlying, you have the right to sell 100 shares of XYZ at the strike price. 𝐅𝐮𝐭𝐮𝐫𝐞𝐬 𝐎𝐩𝐭𝐢𝐨𝐧𝐬: The underlying for futures options is usually the futures contract itself. For example, if you have an option on a March futures contract, your underlying is the March futures contract. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞: 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐅𝐮𝐭𝐮𝐫𝐞𝐬 • Financial futures often trade on a quarterly cycle (March, June, September, December). Here’s how the underlying works: • January or February Option: Underlying is March futures contract. • April or May Option: Underlying is June futures contract. • July or August Option: Underlying is September futures contract. • October or November Option: Underlying is December futures contract. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: • Call and Put Options: Provide the right to buy or sell an asset at a specified price within a specified time. • Futures Contracts: Agreements to buy or sell an asset at a future date with specified terms. • Underlying Asset: The specific asset (e.g., stock, futures contract) that an option or futures contract is based on. • Financial Futures: Often follow a quarterly cycle, determining the underlying contract for options.  #OptionsTrading #FuturesContracts #FinancialMarkets #Investing #TradingBasics #Options #Futures #Investing #Stocks #Stockmarket #BusinessStrategy #FinancialPlanning #ForwardContracts #OptionContracts #RiskManagement #Entrepreneurship #OptionsTrading #FinancialMarkets #InvestmentStrategies #Volatility #TradingEducation #MarketAnalysis #TradingStrategies #FinancialLiteracy #ContinuousLearning #OptionsPricing #Finance #StockMarket #TradingTips #Investing #Derivatives #HedgeFunds #TradingCommunity #FinancialPlanning #EconomicTrends

Derivatives Demystified: Bull Put Spread Strategy in Options Trading 📉💵 The bull put spread, also known as a short put spread, is an options trading strategy used when a trader expects a moderate increase or stability in the price of an underlying asset. This strategy involves selling a put option at a higher strike price and simultaneously buying another put option at a lower strike price, both with the same expiration date. Key Components of the Bull Put Spread Structure:Sell 1 ITM Put Option: This is the short leg of the spread, sold at a higher strike price (In-The-Money). Buy 1 OTM Put Option: This is the long leg of the spread, purchased at a lower strike price (Out-Of-The-Money). Cost and Profitability:The trade is initiated for a net credit, meaning the premium received from selling the higher strike put is greater than the premium paid for buying the lower strike put. The maximum profit is equal to the net credit received when entering the trade, while the maximum loss is capped. Calculating Maximum Loss, Maximum Profit, and Breakeven Maximum Profit: This occurs if the stock price stays above the higher strike price at expiration. For example, if you sell a ₹50 put option and buy a ₹45 put option for a net credit of ₹5, your maximum profit would be ₹500 (since ₹5 x 100 shares = ₹500) 🎉. Maximum Loss: The maximum loss can be calculated as:Max Loss=(Higher Strike−Lower Strike)−Net Credit Max Loss=(Higher Strike−Lower Strike)−Net Credit In our example, if the stock closes below ₹45 at expiration, your maximum loss would be:(₹50−₹45)−₹5=₹5 (₹50−₹45)−₹5=₹5 Thus, your maximum loss would be ₹500 (since ₹5 x 100 shares = ₹500) 💔. Breakeven Point: The breakeven point can be calculated using:Breakeven=Higher Strike−Net Credit Breakeven=Higher Strike−Net Credit Continuing with our example, your breakeven would be:₹50−₹5=₹45 ₹50−₹5=₹45 Advantages of the Bull Put Spread Limited Risk: The maximum loss is known and limited to the difference between strikes minus the net credit received 🔒. Income Generation: This strategy allows traders to collect premium income upfront while managing risk effectively 💰. Defined Risk-Reward Profile: Traders can clearly understand potential profits and losses before entering the trade 📋. When to Use a Bull Put Spread? This strategy is best employed when traders have a moderately bullish outlook on an underlying asset or expect it to remain stable. It benefits from slight upward movements or sideways trends in stock prices 🌅.In summary, the bull put spread is an effective strategy for traders looking to capitalize on moderate bullish trends while managing risk through defined parameters 🚀. #OptionsTrading #BullPutSpread #TradingStrategies #Investing #Finance #Derivatives #StockMarket #OptionsStrategy #RiskManagement Sarthak Nautiyal The Wall Street Skinny Wall Street Oasis

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐃𝐞𝐫𝐢𝐯𝐚𝐭𝐢𝐯𝐞𝐬 𝐚𝐧𝐝 𝐰𝐡𝐚𝐭 𝐚𝐫𝐞 𝐅𝐮𝐭𝐮𝐫𝐞𝐬 𝐚𝐧𝐝 𝐎𝐩𝐭𝐢𝐨𝐧𝐬. Derivatives is a contract that derives its value from the performance of an underlying asset. Derivatives can be used for: 𝐇𝐞𝐝𝐠𝐢𝐧𝐠: To reduce risk 𝐒𝐩𝐞𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧: To make profit from price movements 𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐠𝐞: Taking advantage of price difference in different markets 𝐅𝐮𝐭𝐮𝐫𝐞𝐬: Futures contract is a legal agreement to buy and sell an asset at predetermined price at specified future date. Future contract are an obligation to fulfill the contract at expiration. For Example: Suppose you buy a future contract for 100 shares of a stock at ₹200 each, expiring in 3 months. Regardless of the stock’s price at expiration, you must buy those 100 shares for ₹200 each when the contract expires. 𝐎𝐩𝐭𝐢𝐨𝐧𝐬: Options contract gives buyer the right but not the obligation to buy or sell an asset at a specified price before expiration date. There are two types of Options: 𝐂𝐚𝐥𝐥 𝐎𝐩𝐭𝐢𝐨𝐧𝐬: Gives the the holder the right to buy the underlying asset, when the holder thinks the market is bullish and sell it when the market is bearish. 𝐏𝐮𝐭 𝐎𝐩𝐭𝐢𝐨𝐧𝐬: Gives the holder the right to sell the underlying asset. When the holder thinks the market is bearish he will buy the underlying asset and sell it when the market is bullish. For Example: Suppose you buy a call option for ₹100 with a strike price of ₹1,000 expiring in one month. If the price of the stock rises above ₹1,000 before expiration you can exercise the option and buy the stock at ₹1,000, potentially profiting. If the stock price does not rise, you let the option expire and lose only premium which is ₹100.

Buy & Sell Signals (BTO) Pivots Trading Plans and Risk Controls: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts

🎯 Master the Call Ratio Spread for Strategic Gains! 🎯 Looking to profit from a moderate stock price increase while managing your risk? The Call Ratio Spread might be your perfect tool. Here’s a breakdown on how to implement this strategy: 🔸 Buy one call option at a lower strike price 🔸 Sell multiple call options at a higher strike price Why you should dive in: 📈 Ideal for moderately bullish markets 💼 Generates income with a potential for reasonable gains ⚖️ Balance your risk with careful strike price selection and favorable ratios Key considerations: ⚠️ Understand the risk of unlimited loss if the stock rises significantly 📊 Monitor underlying stock and market conditions closely 🔍 Adjust positions to manage potential risks effectively Ready to unlock the full potential of the Call Ratio Spread? Analyze your strategy with the free InsiderFinance Options Profit Calculator: https://lnkd.in/eXAJ8DE4 #DayTrading #Trading #Investing #Finance #Markets #SwingTrading #OptionsTrading

TSLA (Tesla). Here's a summary of the key points: Price Action Analysis: The analysis is based on institutional price action, suggesting that the stock's price is approaching the end of a drop to a liquidity zone. Buy Opportunity Zone: A buy opportunity is identified in the range of 150$-130$, contingent on confirmation. Take Profit Levels: The first take profit level is set at 215$-231$. If there's a breakout from the zone, the final take profit target is identified at 299$, which is considered a supply clear zone. Risk Disclaimer: The information provided is emphasized to be for educational purposes and not financial advice. Traders are encouraged to make their own decisions and trade at their own risk. Remember that investing and trading involve risks, and individuals should conduct their own research and analysis before making any trading decisions. Market conditions can change, so it's important to stay informed and adapt strategies accordingly. #forexeducation #goldtrading #stockstotrade #investmentinsights

Buy & Sell Signals (RAIL) Pivots Trading Plans and Risk Controls: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts

𝗢𝗽𝘁𝗶𝗼𝗻𝘀 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗥𝗶𝘀𝗸𝘀: 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗲 𝘁𝗵𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝘄𝗶𝘁𝗵 𝗖𝗮𝘂𝘁𝗶𝗼𝗻 (𝟮𝟬𝟮𝟰 𝗚𝘂𝗶𝗱𝗲) Explore the world of options trading and understand the key risks involved. Learn how to navigate the market cautiously with essential tips and strategies. Link: https://bit.ly/3Tr4TUP #optionstrading #trading #StockMarkets

After the expiry of options contracts, particularly before the market opens, traders must exercise caution due to the heightened potential for price volatility. This period is often characterized by significant movements, as market participants reposition themselves following the expiration of options positions. Whether prices rise or fall, the post-expiry window presents unique challenges and opportunities for traders. When prices increase post-expiry, the market may provide favorable conditions for investors holding long positions. However, if prices decline, the situation becomes more precarious. The decline can signal an unraveling of positions tied to expired options contracts, creating a phase of instability and sharp price swings. This volatility is driven by the "destructuring" of previously held positions as traders and institutional players adjust their portfolios to account for the new market dynamics. One of the key reasons for this increased volatility is the unwinding of hedging strategies. Traders who held options positions often hedge against potential losses by holding offsetting positions in the underlying asset. Upon the expiry of these options, these hedges are no longer necessary, leading to rapid buy or sell orders that can drive significant market moves. This process is known as "gamma unwinding," where dealers and market makers must adjust their exposure, often exacerbating market movements in either direction. Additionally, the liquidity dynamics of the market change in the aftermath of options expiration. As large institutional players exit or restructure their positions, liquidity can become fragmented, leading to sharp price movements even on relatively lower volumes. This liquidity vacuum can contribute to a more erratic and unpredictable market, especially during the early hours of trading. For traders, this period presents both risk and opportunity. A well-constructed strategy should include an understanding of potential price movements and an awareness of liquidity conditions. Traders must be prepared for sudden spikes in volatility and consider adjusting their risk management parameters accordingly. This could involve tightening stop-losses, reducing position sizes, or even waiting for the market to stabilize before entering new trades. Finally we have that, the period following options expiry, particularly before the market opens, can be a critical juncture for traders. The price direction will soon become apparent, but the window of volatility created by the restructuring of positions requires careful attention and strategy. By understanding the forces at play, such as gamma unwinding and liquidity fragmentation, traders can better navigate the risks and opportunities presented by this volatile market phase, unless that's my humble opinion about all of that.