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BANK NIFTY BUDGET DAY ANALYSIS 23/07/2024BUY ABOVE - 52400 SL - 52200 TARGETS - 52620,52800,53000 SELL BELOW - 52200 SL - 52400 TARGETS - 52000,51740,51510 NO TRADE ZONE - 52200 to 52400 Previous Day High - 52400 Previous Day Low - 52000 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
2
NIFTY BUDGET DAY ANALYSIS 23/07/2024BUY ABOVE - 24530 SL - 24480 TARGETS - 24590,24660,24730 SELL BELOW - 24480 SL - 24530 TARGETS - 24440,24400,24350 NO TRADE ZONE - 24480 to 24530 Previous Day High - 24590 Previous Day Low - 24350 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP
Options Blueprint Series: Tailoring Yen Futures Delta ExposureIntroduction In options trading, a Bull Call Spread is a popular strategy used to capitalize on price increases in the underlying asset. This strategy involves buying a call option at a lower strike price while simultaneously selling another call option at a higher strike price. The net effect is a debit trade, meaning the trader pays for the spread, but the risk is limited to this initial cost, and the profit potential is capped by the sold call option's strike price. For traders interested in Japanese Yen Futures, the Bull Call Spread offers a way to potentially profit from expected upward movements while managing risk effectively. Delta exposure, which measures the sensitivity of an option's price to changes in the price of the underlying asset, is a crucial aspect of this strategy. By carefully selecting the strike prices of the options involved, traders can tailor their delta exposure to match their market outlook and risk tolerance. In this article, we will delve into the mechanics of Bull Call Spreads, explore how varying the sold unit's strike price impacts delta exposure, and present a practical case study using Japanese Yen Futures to illustrate these concepts. Mechanics of Bull Call Spreads A Bull Call Spread is typically constructed by purchasing an at-the-money (ATM) call option and selling an out-of-the-money (OTM) call option. This strategy is designed to take advantage of a moderate rise in the price of the underlying asset, in this case, Japanese Yen Futures. Components of a Bull Call Spread: Buying the ATM Call Option: This option is purchased at a strike price close to the current price of the underlying asset. The ATM call option has a higher delta, meaning its price is more sensitive to changes in the price of the underlying asset. Selling the OTM Call Option: This option is sold at a higher strike price. The OTM call option has a lower delta, reducing the overall cost of the spread but also capping the profit potential. Delta in Options Trading: Delta represents the rate of change in an option's price concerning a one-unit change in the price of the underlying asset. For call options, delta ranges from 0 to 1: ATM Call Option: Typically has a delta around 0.5, meaning if the underlying asset's price increases by one unit, the call option's price is expected to increase by 0.5 units. OTM Call Option: Has a lower delta, typically less than 0.5, indicating less sensitivity to changes in the price of the underlying asset. By combining these two options, traders can create a position with a desired delta exposure, managing both risk and potential reward. The selection of strike prices is crucial as it determines the overall delta exposure of the Bull Call Spread. Impact of Strike Price on Delta Exposure Delta exposure in a Bull Call Spread is a crucial factor in determining the overall sensitivity of the position to changes in the price of the underlying asset. By adjusting the strike price of the sold call option, traders can fine-tune their delta exposure to align with their market expectations and risk management preferences. How Delta Exposure Works: Higher Strike Price for the Sold Call Option: When the strike price of the sold call option is higher, the overall delta exposure of the Bull Call Spread increases. This is because the sold option has a lower delta, contributing less to offsetting the delta of the purchased call option. Lower Strike Price for the Sold Call Option: Conversely, a lower strike price for the sold call option decreases the overall delta exposure. The sold option's higher delta offsets more of the delta from the purchased option, resulting in a lower net delta for the spread. Examples of Delta Exposure: Example 1: Buying a call option with a strike price of 0.0064 and selling a call option with a strike price of 0.0065. Purchased call option delta: 0.51 Sold call option delta: 0.34 Net delta: 0.51 - 0.34 = 0.17 Example 2: Buying a call option with a strike price of 0.0064 and selling a call option with a strike price of 0.0066. Purchased call option delta: 0.51 Sold call option delta: 0.21 Net delta: 0.51 - 0.21 = 0.29 As illustrated, the higher the strike price of the sold call option, the greater the net delta exposure. This increased delta indicates that the position is more sensitive to changes in the price of Japanese Yen Futures, allowing traders to capitalize on more significant price movements. Conversely, a lower strike price reduces delta exposure, making the position less sensitive to price changes but also limiting potential gains. Case Study: Japanese Yen Futures Market Scenario: Recently, a downtrend in Japanese Yen Futures appears to have potentially reversed, presenting an opportunity to capitalize on a new potential upward movement. To take advantage of this potential uptrend, we will construct a Bull Call Spread with specific entry, stop loss, and target prices based on Yen Futures prices (underlying). Underlying Trade Setup Entry Price: 0.0064 Stop Loss Price: 0.00633 Target Price: 0.00674 Point Values and Margin Requirements Point Values: For Japanese Yen Futures, each tick (0.0000005) equals $6.25. Therefore, a movement from 0.0064 to 0.0065 represents a 200-tick change, which equals $1,250 per contract. Margin Requirements: Margin requirements for Japanese Yen Futures vary but are currently set at $2,800 per contract on the CME Group website. This amount represents the minimum amount of funds required to maintain the futures position. Valid Bull Call Spread Setup Given the current market scenario, the following setup is selected: 1. Purchased Call Option Strike Price: 0.0064 (ATM) Delta: 0.51 2. Sold Call Option Variations Strike Price 0.0068: Delta: 0.08 3. Net Delta: 0.42 Reward-to-Risk Ratio Calculation Due to the limited risk profile of Debit Spreads, where the maximum potential loss is confined to the initial debit paid, stop loss orders will not be factored into this reward-to-risk ratio calculation. Debit Paid: 0.000085 (call purchased) - 0.000015 (call sold) = 0.00007 Potential Gain: Sold Strike - Strike Bought - Debit Paid = 0.0068 - 0.0064 - 0.00007 = 0.00033 Potential Loss: Debit Paid = 0.00007 Reward-to-Risk Ratio: 0.00033 / 0.00007 ≈ 4.71 This ratio indicates a favorable risk-reward setup, as the potential reward is significantly higher than the risk. Conclusion In this article, we have explored the intricacies of using Bull Call Spreads to tailor delta exposure in Japanese Yen Futures trading. By strategically selecting the strike prices for the options involved, traders can effectively manage their delta exposure, aligning their positions with their market outlook and risk tolerance. Key Points Recapped: Bull Call Spreads: This strategy involves buying an at-the-money (ATM) call option and selling an out-of-the-money (OTM) call option to capitalize on moderate upward price movements. Delta Exposure: The delta of the options involved plays a crucial role in determining the overall sensitivity of the spread to price changes in the underlying asset. Strike Price Variations: Adjusting the strike price of the sold call option can significantly impact the net delta exposure, offering traders the flexibility to fine-tune their positions. Case Study: A practical example using Japanese Yen Futures illustrated how varying the sold unit's strike price changes the delta exposure, providing concrete insights into the strategy. Risk Management: We always emphasize the importance of stop loss orders, hedging techniques, avoiding undefined risk exposure, and precise entries and exits ensures that trades are structured with proper risk controls. By understanding and applying these principles, traders can enhance their ability to navigate the complexities of options trading, making informed decisions that align with their trading objectives. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME:6JU2024Education
by traddictiv
2
BANK NIFTY INTRADAY LEVELS FOR 22/07/2024BUY ABOVE - 52480 SL - 52360 TARGETS - 52620,52800,53000 SELL BELOW - 52200 SL - 52360 TARGETS - 52000,51740,51510 NO TRADE ZONE - 52200 to 52480 Previous Day High - 52620 Previous Day Low - 52200 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
NIFTY INTRADAY LEVELS FOR 22/07/2024BUY ABOVE - 24590 SL - 24530 TARGETS - 24660,24730,24780 SELL BELOW - 24490 SL - 24530 TARGETS - 24440,24400,24350 NO TRADE ZONE - 24490 to 24590 Previous Day High - 24830 Previous Day Low - 24490 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP
BANK NIFTY INTRADAY LEVELS FOR 19 JULY 2024BUY ABOVE - 52620 SL - 52480 TARGETS - 52800,53000,53230 SELL BELOW - 52360 SL - 52480 TARGETS - 52200,52000,51740 NO TRADE ZONE - 52360 to 52620 Previous Day High - 52800 Previous Day Low - 52200 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
2
NIFTY INTRADAY LEVELS FOR 19 JULY 2024BUY ABOVE - 24830 SL - 24780 TARGETS - 24900,24960,25030 SELL BELOW - 24730 SL - 24780 TARGETS - 24660,24580,24530 NO TRADE ZONE - 24730 to 24830 Previous Day High - 24830 Previous Day Low - 24530 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP
BANK NIFTY INTRADAY LEVELS FOR 18 JULY 2024BUY ABOVE - 52620 SL - 52400 TARGETS - 52800,53000,53230 SELL BELOW - 52400 SL - 52620 TARGETS - 52200,52000,51740 NO TRADE ZONE - 52400 to 52620 Previous Day High - 52620 Previous Day Low - 52400 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
2
NIFTY INTRADAY ANALYSIS FOR 18 JULY 2024BUY ABOVE - 24660 SL - 24580 TARGETS - 24730,24800,24860 SELL BELOW - 24580 SL - 24660 TARGETS - 24530,24490,24440 NO TRADE ZONE - 24580 to 24660 Previous Day High - 24660 Previous Day Low - 24580 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP
2
WAL Western Alliance Bancorporation Options Ahead of EarningsIf you haven`t bought the start of the reversal on WAL: Now analyzing the options chain and the chart patterns of WAL Western Alliance Bancorporation prior to the earnings report this week, I would consider purchasing the 65usd strike price Puts with an expiration date of 2024-9-20, for a premium of approximately $1.60. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NYSE:WALShort
by TopgOptions
Opening (IRA): SPY August 16th 498 Monied Covered Call... for a 493.42 debit. Comments: As with my QQQ monied, re-upping in SPY after having taken profit on my August 16th 493. Here, selling the -84 delta call against, which will mean a lower max and a lower ROC %-age. Just looking to potentially milk a little more out of the August cycle (60 DTE), before moving into Sept. Metrics: Buying Power Effect/Break Even: 493.42 Max Profit: 4.58 ROC at Max: .93% 50% Max: 2.29 ROC at 50% Max: .46%
AMEX:SPYLong
by NaughtyPines
Opening (IRA): QQQ August 16th 425 Monied Covered Call... for a 420.39 debit. Comments: After having taken profit on my August 16th 420 CC, re-upping, but at a slightly higher strike ... . The ROC %-age metrics aren't generally what I like to see out of these, but have already realized some gains in the August cycle, so am fine if the ROC %-age isn't stellar here. I'm also selling the -85 delta call against, as opposed to my usual -75. Metrics: Break Even/BPE: 420.39 Max Profit: 4.61 ROC at Max: 1.10% 50% Max: 2.30 ROC at 50% Max: .55%
NASDAQ:QQQLong
by NaughtyPines
Opened (IRA): IWM August 16th 191 Monied Covered Call... for a 187.46 debit. Comments: (Late Post). Sold the -75 call against a one lot to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 187.46. Max Profit: 3.54 ($354) ROC at Max: 1.89% ROC at 50% Max: .94% Will generally look to take profit at 50% max on the entire setup (stock + short call) as a unit, but won't hesitate to roll out the short call if in profit to keep my break even at or near where the underlying is currently trading.
AMEX:IWMLong
by NaughtyPines
DJT stock: Dead cat rebound or wave of support?Trump Media & Technology Group Corp's stock surged following news of an attempted assassination on major shareholder Donald Trump at a political rally on Sunday. Given the fervent nature of Trump's supporters, it's plausible that voters could turn to their wallets before casting ballots in November as the presidential race heats up. Drawing parallels to the recent activity surrounding the GameStop stock, a meme rally cannot be entirely ruled out, potentially presenting a lucrative opportunity for speculators. For this scenario to materialize, high trading volumes in the stock need to persist. The average trading volume over the past two weeks is around 10 million shares. If today's activity surpasses this figure, it could indicate sustained interest in the stock following yesterday's massive gap up and record trading volume. Although DJT stock closed $6 lower than its opening price, it currently hovers around the crucial $40 level. If the bulls can maintain the price above this level before today's close, it could signal a further bullish trend. Conversely, if the price were to fall below the $40 mark, we might see the stock trading at its early July levels of $30. This trade is highly speculative, and while the current political climate could easily add more fuel to the fire, it's crucial to monitor the fundamentals. DJT reported a loss for Q1, but with Q2 earnings around the corner, investors should stay vigilant. Call spreads with 30-40 DTE (shortly before Q2 earnings report) might be an interesting play here regardless of the direction you're betting on.
NASDAQ:DJT
by WHSelfInvest
BANK NIFTY INTRADAY LEVELS FOR 16/07/2024BUY ABOVE - 52620 SL - 52400 TARGETS - 52800,53000,53230 SELL BELOW - 52400 SL - 52620 TARGETS - 52200,52000,51740 NO TRADE ZONE - 52400 to 52620 Previous Day High - 52620 Previous Day Low - 52200 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
NIFTY INTRADAY ANALYSIS FOR 16/07/2024BUY ABOVE - 24630 SL - 24580 TARGETS - 24700,24760,24830 SELL BELOW - 24530 SL - 24580 TARGETS - 24490,24440,24400 NO TRADE ZONE - 24530 to 24630 Previous Day High - 24630 Previous Day Low - 24530 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP
4
Opened (IRA): XLE August 16th 85 Monied Covered Call... for an 83.77 debit. Comments: Some of the only red on my ETF board ... . Here, selling the -75 delta call against a one lot to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. There is also a divvy to be had some time in June, with the last distribution being .73. Metrics: Buying Power Effect/Break Even: 83.77 Max Profit: 1.23 ($123) ROC at Max: 1.47% 50% Max: .62 ($62) ROC at 50% Max: .74%
AMEX:XLELong
by NaughtyPines