Options trading is tough. It requires not only watching the markets but also monitoring the finer details of the Calls and Puts you’re trading. I learned this the hard way! I had time-tested strategies that worked great in equities. Signals to buy, signals to sell.... the works! These strategies generated consistent returns in equities. But when I started applying them to options, the profits just weren’t adding up. Same strategies—way different results. I learnt that options aren’t straightforward. They have peculiar characteristics like implied volatility (IV) and time decay, among others. They depend on many different factors. Simply put, these factors often balloon up the price of an option (call/put) in the short term. If you catch a ballooned-up option on the wrong side, you’re likely not going to see much success. While this is a tough problem to simplify for traders, we’ve got some exciting new tools lined up in June on INDstocks by INDmoney that we hope will help traders bridge this gap!
It's true that options trading presents unique challenges that aren't immediately apparent when transitioning from equities. The impact of implied volatility (IV) and time decay (theta) on option pricing can be quite significant and often counterintuitive. Could you share a bit more about how these tools will address the peculiarities of options trading and what features we can look forward to?
Jasvir singh
6mo
Love this
Drishti Pandita
7mo
looking forward!
Options Trader | IITR | CFA-L1 | Ex-Nobroker
7moNikhil Behl I will be keenly waiting for the tools as to how you incorporate different factors affecting options pricing. Especially the role of IV and trades based on short vega and long vega. Here are some things I am excited about. 1. Are you making a different app altogether for it ? Similar to dhan ? For options trading or you are going to incorporate another third party softwares just for strategies like sensibull? Opstra or stockmock 2. Will it be more like guiding the user to which options are expensive and planning a short trade and vice versa, similar to the way univest has done for equity futures mainly. 3. Will it be educational ? Like Zerodha Varsity ? Making the user educated about the options, it's Greek and their interdependence, helping the user to be educated and making a informed decision 4. Or there will be a different toolkit altogether like quantsapp or sensibull with some ready made strategies by taking the bare minimum input from the user. Also what is the user segment you are targetting ? In anycase, I am really looking forward to seeing INDmoney in a different perspective.