Masterclass on Profitable Options Trading Strategies - TMP

You may be drawn to options trading because of the higher rewards it provides. But if you enter the world of options trading without having a solid grasp of how the derivatives market operates, you might lose a lot of money.

Conversely, you may avoid options trading because you find it too complicated and risky. You might hesitate to dive into this market because you're worried about losing your capital, thus missing out on higher returns.

Given the circumstances described above, we designed this course to assist you in becoming an independent options trader.

In this course, you will learn about 7 profitable options trading strategies. This course on options trading focuses on laying the groundwork from the fundamentals to provide you with an advantage in becoming a profitable options trader. 

The expert will provide you with guidance on how to determine the stock's entry and exit levels, various options trading strategies, and their practical implementation through backtesting, risk management, and position size.

Here, you will receive practical experience in executing trades in a live market using proper rule-based strategies. 

Please find below the topics covered under this course - Advanced Profitable Strategies in Options Trading:

Topic 1: Introduction to Derivatives

• In-depth understanding of Derivatives: 

Moving on, you will understand derivatives and how the equity market differs from the derivatives market. 

Here, you will also explore different types of derivative instruments, such as Forwards, Futures, Options, and Swaps. 

• Basic concept of Futures: 

In this live session, you will learn more about the futures market and the basic terminologies of futures, such as standardized contracts, settlement dates, open interest, etc. 

Then, you will learn how to calculate and interpret open interest and how it relates to the price and volume of futures contracts, touching upon market trends.

• Index F&O v/s Stock F&O: 

Further, you will explore the difference between index and stock futures and options while learning how to extract and interpret various data using the NSE website and StockEdge App to get valuable information about market sentiment. 

Lastly, you will understand the future pricing methods and the concept of contango and backwardation.

Topic 2: Introduction to Options 

• Gain a comprehensive knowledge of Options: 

After understanding the workings of the derivatives market and everything about futures, you will understand the basics of options and its types, such as call and put with an example. 

You will then move on to decode various terminologies such as underlying asset, strike price, expiration date, option writer, volume, open interest and option chain.

You will also understand how to read and analyze the option chain on the NSE website. 

• Understand the Risk-Reward Payoff & Moneyness: 

Further, you will understand the risk-reward payoff of call & put and build the strategy using Opstra Options. 

Next, you will look at the essential concept of option trading, i.e., the option's intrinsic value and time value, which lays the foundation for moneyness (ITM, OTM and ATM). 

You will also learn how to leverage open interest analysis using the NSE website to make informed decisions. 

• Identify the Entry and Exit Levels: 

As we progress, you must understand the support and resistance to know the entry and exit from trades. So, you will learn how to spot resistance from the option buyer and seller perspective. 

Additionally, you will understand how to analyze the option contracts by using chart patterns & open interest. 

Topic 3: Option Greeks 

• Analyze the Derivative Contract: 

Now that you thoroughly understand the basics, risk-reward payoff, and moneyness, let us dive deep. You will now understand the difference between American and European options and the concept of cash settlement and delivery settlement. 

You will then learn how to analyze the derivatives contract with practical implications and go through various tools such as open interest and put call ratio that predict the market trends and sentiment. 

• Pricing of Option Premium: 

Further, you will gain insights into the pricing of option premiums and understand the factors that affect the pricing, such as underlying price, strike price, expiration date, implied volatility, and interest rates. 

• Concept of Option Greeks: 

You will now explore why option Greeks act as a sword and shield in option trading. So, we'll then discuss the concept of option Greeks and illustrate the intricate roles that delta, gamma, vega, theta, and rho play in determining premium by analyzing these Greeks.

• Understand Volatility & Options Trading Strategies: 

In this option trading course online, you will also understand the calculation of historical volatility, the distributive curve of vega, implied volatility, and their relationship with the Volatility Index (VIX) and explore the setup of the golden bank nifty, delta neutral strategy, gamma hulk, strangle using Opstra and Stock Mock. 

Next, you will understand the delta and gamma with time, theta, and the contract's volatility and analyse the IV percentile.  

Topic 4: Advanced Options Strategies

• Strategy 1: Finnifty Expiry Iron Fly Strategy.  

This session will help you to take advantage of quick intraday theta decay due to expiry in the market. This strategy basically ensures that the option sellers are up in the race and enjoying profits from the start of the day so that we can also participate on their side. Here, you will learn how to implement this strategy, know the entry and exit levels, and when to avoid trading it.

• Strategy 2:  Diamond Bank Nifty Weekly Expiry Positional Fly Condor 

This session will help you to use the time decay to capitalize on the dynamics of Bank Nifty's weekly options. Here, you will gain insights into effective range-bound trading skills. Here, you will learn how to leverage the time decay of weekly options by creating a position that profits from theta decay, capitalize on the expected range-bound movement of Bank Nifty during the specific weekly timeframe and limits potential losses through a predefined stop loss, ensuring disciplined risk management.

• Strategy 3: Multibagger buying Long Bank Nifty call buying

This session will give you perspective on capturing multibagger gains through buying long Bank Nifty Call options. The strategy leverages specific conditions, including gap-up openings and the highest high range of premium, to optimize entry points and aims to secure substantial profits. Here, you will learn how to build this strategy, determine entry and exit strategies and manage risk & position sizing.

• Strategy 4: Buying Gamma Hulk

The aim of this strategy is to catch significant market movements on the expiry day by buying options. Here, you will learn how to spot strong momentum using price action, understand when to enter & when to exit and set stoploss & target to maximize profits. This strategy is usually preferable for monthly expiry options.

• Strategy 5: Monthly Expiry Trading Setup: Bull Call Spread/Bear Put Spread 

The aim of this monthly expiry trading setup is to capitalize on both bullish and bearish market views using Bull Call Spreads and Bear Put Spreads. Here, you will understand and execute Bull Call Spreads and Bear Put Spreads based on market views. You will also learn how to identify the trends, spot entry and exit levels and determine stop loss and target.

• Strategy 6: Range Bound Monthly Expiry Trading Setup: Iron Condor

The aim of this strategy is to take benefit from a range-bound market by selling call and put options to maximize profits. Here, you will learn how to identify the sideway market and how to implement an iron condor strategy, which involves selling both call and put options. Furthermore, you will know how to hedge your positions to limit potential losses.

• Strategy 7: Event Trading Setup: Long Straddle 

The Long Straddle strategy in event trading intends to make money from significant price movements caused by expected volatility during events. Here, you will learn how to trade in events day using a long straddle. You will also know how to determine the entry and exit levels and set stop loss and target to limit potential losses. Furthermore, you will also understand how to manage risk management and position sizing. 

To learn more, speak to our program advisor at +91 9748222555.