A long call butterfly is an options trading strategy that involves three different call options with the same expiration date but different strike prices. Here's how it works.
Futures are a type of derivative contract agreement to buy or sell a specific Stock, Index, commodity asset, or security at a set future date for a set price. Futures contracts, or simply "futures," are traded on futures exchanges like the NSE, BSE, and MCX and require a trading account that’s approved to trade futures.
The difference between Option buyer & option seller, Buyer of an option has limited risk (to the extent premium paid), An Option writer has unlimited risk, An option buyer has a high reward-to-risk ratio, Option writer has a low reward-to-risk ratio, An option buyer has unlimited profit potential, Option writer has to pay margin money (exposure and span margin),
Bull put spread, As the name suggests, Bull means the market is bullish and Put spread that is, has been created by combining put options. In this strategy “At the money” or “In the money” Put option, we have to sell & “Out the money” put option, we have to buy.
Bull Call Spread as the name suggests, is made by combining, Bull i.e., the market is bullish and Call Spread is made by combining two call options, in which the “In the money” call option or “At the money” call option is bought and the “Out the money” call option is sold. Which is called “Bull call spread”
Long Call Option Trading Strategy is a very simple and very basic strategy that is the most used. whenever a trader, If the Nifty or Bank Nifty index is bullish in the market or any stock is bullish, then take call option of that index or call option of that stock for big profits by taking a small risk. The position created in this way is called LONG CALL.
The call option provides buying rights to the buyer, but without any obligation of buying, Put option provides selling rights to the buyer without any obligation to sell, Call option buyers expect that the stock or index prices will increase, Put option buyer is determined that the stock or index prices will decrease
Option trading is a type of financial trading that allows traders to buy or sell the right to buy or sell underlying assets or sell shares at a set price within a specific time frame. A Call option is used when you expect the prices to increase/rise. A Put option is used when you expect the prices to decrease/fall.
A flag is a chart pattern formed during a counter-trend down after a sharp fall in price movement. A bear flag pattern forms during a downtrend. It got its name because it resembles a flag on a flagpole while the price continues to move in a downtrend, attaining lower lows and lower highs.
If you do option trading, then it is very important to know about option Greeks before doing option trading, because there are four factors of option Greeks, Delta, theta, gamma, vega. When there is a change in the index or any stock, there is a change in the calls and puts of that stock or index, which is a very important role of option Greeks.
The ascending triangle pattern is the bullish chart pattern. In this, all the swing highs will be at the same level and each low will be higher than the previous low. With each candle, the price keeps shifting higher but stays under the resistance zone.
The falling wedge is a bullish pattern. Together with the rising wedge formation, these two create a powerful pattern that signals a change in the trend direction. In general, a falling wedge pattern is considered to be a reversal pattern, although there are examples when it facilitates a continuation of the same trend.