Rajandran R – Option Hydra – June 2020 Edition – Basics
Option Hydra is an online mentorship program for option traders (Beginner level & Intermediate) who you want to explore the world of options with deeper insights and gaining knowledge on properly applying the option strategies properly.
What You’ll Learn In Option Hydra?
Session 1 – Understanding Option & Basic Option Terminologies
- Option Buyer Vs Option Sellers
- Option Terminologies (Strike Price, Open Interest, Lot Size, Option Chain)
- Different Types of Option Contracts
- Understanding How Institution Hedge their Positions
- Debit Strategies Vs Credit Strategies
- Understanding ATM, ITM & OTM Option
- Intrinsic Value Vs Extrinsic Value (Time Value)
- Which Strike Price One should Select – Trading Scenarios
Session 2 – Understanding Payoff Graph, Margin Requirement for Various Trading Strategies
- Introduction to Option Pricing
- Introduction to F&O Margin Components
- How to use the Margin Calculator and Importance of use the Margin Calculator
- New Margin Calculation as per SEBI regulations
- Cash Secured Put Strategy for Investors
- Exercising Options (European Options Vs American Options)
- Cash Delivery Vs Compulsory Physical Delivery
- How to Interpret the Open interest Charts
- How to take a view using Open Interest and Price Structure
- Understanding Theta Decay
- Weekly Options Vs Monthly Options
- Understanding the Payoff Graph of Long Call Options and Long Put Options
- Understanding the Payoff Graph of Short Call Options and Short Put Options
Session 3 – Understanding Top down Approach, Volatility, Implied Volatility
- How to Apply Top down approach to take a objective view in the Market
- How to Understand the Market Structure?
- How to get a Trading Perspective?
- Importance of Measuring the Volatility
- Understanding Implied Volatility
- Realized Volatility Vs Unrealized Volatility
- Introduction to Volatility Skew
- How to retrieve historical option data open interest from NSE india portal
- Importance of reading India VIX
Session 4 – Event Trading, Volatility Skew , IV Percentile and IV Rank
- IV percentile & IV Rank
- Classification of Strategies with IV percentile
- Event Trading and the Options Premium Behavior during Events
- Implied Volatility Crush during Event
- How to trade Options during event
- Simple Price Action Pattern in Trading Events
- How to Trade Post Market Event and How to Trade Ongoing Event
- How to Design your options Strategy and efficiently manage your Margin Requirements
- Different Market Participants and How to read Open Interest data of various Market Players
Session 5 – Option Greeks and Hedging
- Understanding the Option Greeks
- Importance of Option Greeks and Option Premium Behavior (Useful for Option Buyers & Option Sellers)
- Option Price Behavior Vs Underlying Price Behavior
- Impact of Gamma on Options Impact
- Lottery tickets on Expiry and Emotional Trading Sentiment on Expiry Day
- Understanding Nifty IV and IV Percentile Graph
- Call Side Volatility Skew Vs Put Side Volatility Skew
- Speculations of Stock Options and How to benefit from the behavior
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