This product is about holding a multiday trading position in Equity and Index using options strategies where all the trades recommended would have a holding period of 10-20 days.
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 currency pair there are 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.
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, trend cycle in terms of Long-Long un-winding or Short-Short Covering, momentum, open Interest, Volatility, PCR 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 6 open positions. And therefore the ideal Margin required to participate in this product shall be Rs12-15lakh 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 Squad?
Option Squad is the product of Option Strategy which has 2,4 or 6 leg strategy. These products mainly have the hedging objective.
- From which universe option is selected?
We look for the suitable risk-reward criteria, check classical technical analysis, Dow theory, PCR, Open interest data, Institutional data, Option Greeks and other technical aspects. Stock must be out of Ban period.
- What is the maximum number of open trades?
- What is Risk-Reward criteria?
Risk –Reward for stock is 1:1.5 and 1:2.
- What is Margin Requirement?
Margin requirement for the product is 12-15 lakh.
- Is it necessary to trade in all recommendation?
Yes to match with our P&L one has to trade in all recommendation