Options trading is becoming insanely popular with traders since it allows them to earn a good income while hedging risk. Additionally, options trading provides many traders with the opportunity to hedge risks, speculate on high yield stocks, and earn income.
It is more complex to trade stock options than to trade stocks. In addition, it takes more steps to open an options trading account than a typical investment account because options trading requires understanding advanced strategies.
Basics to know, before you start options trading:
Open a Trading Account with our Broking and Advisory Partner:
How traders usually research an option contract before trading?
Choose the Liquidity Factor
Choosing a liquid pool of stocks is essential when developing an options trading strategy.
Look at Historical Data and Charts to Identify Trends
Charting and other historical data are beneficial to help traders find the right underlying stocks to invest in.
Monitor Implied Volatility
As long as the underlying stock moves significantly, volatile options trading strategies can return a profit whatever the direction of the underlying stock movement.
Identify Upcoming Events that Might Impact Stock Prices
Stock-specific events are significant for options traders. Several factors can influence stock prices, including economic data releases, federal reserve announcements, election results, earnings reports, and product launches.
Our Suggestion :
We suggest that you have Rs. 1 lakh to Rs. 3 lakhs in cash balance for trading in options, because if you do a credit spread you will not have much funds left in account to trade a debit spread.
If market volatility is extreme high, you are at a high risk. Hence, avoid forced trading in options.
Keep a minimum of 1:2 as a risk reward ratio before you trade a particular options contract.
Why Choose Us?
Cost-Effective
The first and foremost benefit that you will get by choosing EquitySeeds Consultants as your advisor is cost-effective. Our team of experts provides you with accurate options trading research in a cost-effective range.
Save your Time
With us, you can save time which you would have to sit and give for researching or learning on demo accounts. Hence, making it suitable for working class professionals as well.
Great Returns
Over the last 15 years, we have been helping our clients get decent returns from options trading by managing their Portfolio’s risk-reward ratio. We advice trading in futures only if the risk to reward ratio is 1:2 at any given point of time.
Avoid Forced trades
We do not encourage forced trading.
If market volatility is extremely high, you are at a high risk while trading in Futures. Hence, we advice not to speculate by trading in Futures.
EquitySeeds Consultants makes sure each and every aspect of a trade is studied well before we advice our clients to trade on our advice. Also, we have a great track record of offering decent returns to our clients in options trading.
Choose the right option, choose us.
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