This product is suitable for traders who want to participate in the derivative market strategically for making larger gains and who are well capable to handling trading mechanism related to it. Use of option strategies has various advantages as it helps a trader to customize his risk and reward parameter and strategies for each and every trade. For every view about the commodity pair there is many possible ways to trade using options strategies. And this is where our experts with in-depth knowledge of derivatives and market trends come to provide you with a best strategy that reduces your risk without hampering the profitability.
This product is about holding a multiday trading position in commodity pairs using options strategies where all the trades recommended would have a holding period of 10-20 days. All the recommendations given at any point of time shall be closed 3 days before the staggered delivery date.
Trades would be given in majorly in Gold, Silver and Crude. The trades would include simultaneous buying and selling of options across different strike prices and shall have a pre-defined profit pay-off. The exits may or may not involve coming out from all strikes at a time. Also timely modifications may be done in the strategy if opportunity exists to increase the profitability without compromising on the risk.
The Trades would be generated from in-depth Technical and Derivative analysis of the price, trend-structure, commodity cycle in terms of Long-Long un-winding or Short-Short Covering, momentum, open Interest, Volatility etc.
Risk:Reward is another major criteria which is taken into consideration and we strive to make traders comfortable and at ease by providing low risk high reward trade. The risk:reward for this product shall be 1:1.5 at the minimum.
With respect to number of open trading positions, at any point of time we shall have a maximum of 3 open positions. And therefore the ideal Margin required to participate in this product shall be Rs 5lakh since we also have selling of options which require margins. Traders can take trades in multiple lots based on the their capital size but for reference calculation purpose we shall show Profit and Loss based on ten lots of trade.
- What is Option Delight?
This is a Multi-leg option strategy and which is mainly used for hedging objectives.
- Which are the technical parameters used to Select Commodity?
We look for the suitable risk-reward criteria, check classical technical analysis, Dow theory, PCR, Open interest data, Option Greeks and other technical aspects.
- What are the maximum numbers of open trade?
The maximum numbers of open trade are 3.
- What is Risk-Reward criteria?
Risk –Reward for Option Delight Recommendation is 1:1.5 for 1st Target and 1:2 for 2nd Target..
- What is Margin Requirement?
Margin requirement for the product is 5 lakh.
- Is it necessary to trade in all recommendations?
Yes to match with our P&L one has to trade in all recommendations.