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Greek Referendum Trading Tip Inside

I hope you know that there is a referendum (voting) in Greece this Sunday 5th of July 2015, on whether they want to remain in Euro or exit. If the country rejects the bailout then Greece becomes a defaulter and may have to exit the Euro. If accepts then it gets more into debt.

Both are bad for their economy.

However we cannot control Greece or whatever is happening there. What we can control is our trades.

So lets wait for the outcome and take our trades.

What Can You Trade?

Monday morning it will be clear what will happen to Greece and of course Nifty will also react to the news. If traders think its bad news, Nifty will fall and if they think its good, Nifty may rise. Both good for us. :)

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Making Use of VIX Volatility

Refer my post and email dated June 29, 2015 – Greece Crisis What Should You Trade.

On that day I told you that VIX has increased considerably and it is a great time to sell out of the money options and also hedge them by buying options. People who had done that may be in good profits now.

The VIX has come considerably down and its hovering near 15.41. From 18.18 to 15.41 in 3 days. This is a drop of 15.25%. Excellent for sellers. Both the calls and puts option premiums would have shrunken and the trade can be taken off. As the small profit wherever that may be has been achieved there is no need to stay in the trade.

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Which Strike Price Option To Buy

In my pursuance to educate option traders and stock market investors especially retail trades in India who do not have much information available online here is another article to know when to buy options, when not to buy options and which strike options to buy.

Please remember I am NOT against buying options. Sometimes the results can be stellar and buying options can be used as a great hedge against selling. I am against buying options ONLY when traders start to speculate. For example buying out of the money call option of a stock just because “they think” its going to appreciate and they “start imagining” they will make a lot of money. That seldom happens. Usually these speculators are the ones who actually win their first or second trade and their journey of losing money buying options start.

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Greece Crisis What Should You Trade

I usually refrain from advising my subscribers from taking any trade for short term as I am a firm believer of non-directional trade. But today I am making an exception. In fact sometimes when the markets are showing indications of good day to trade I will give you some advice which I feel is correct.

It is quite reasonable to understand that it will help people who have taken my course more than who have not. Still it will help everyone to some extent.

Greece Crisis is no small news. A big Euro country may or may not default. We do not know. As a trader I do not speculate. My only friend is Volatility and what may happen to Volatility. Its a guess, but I take a calculated guess.

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How To Trade A Reverse Iron Condor

A lot of you might know the Iron Condor trade. However if you do exactly the opposite it becomes a Reverse Iron Condor trade.

Reverse Iron Condor is a slightly risky trade with limited profits and limited loss for the trader. This trade cannot be traded every time as the chances of this trade not making any money is more than the chances of this trade making money. Why? Because time is enemy of the this trade. If what the trade wants does not happen fast, the trade will lose money. We will shortly know why.

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When Should You Buy Options

Since the last few months Nifty is range bound and I am sure traders who have taken my course would have definitely made money. There are many strategies that are made for a range bound markets. Please read and follow your favorite strategy for such times.

Unfortunately last few months were pretty bad for option buyers because there was no clear trend expect once when Nifty fell down almost 600 points. After that the story is range bound and no real clear trend for buyers. Let me tell you that historically Indexes behaves this way only leaving little opportunity for option buyers to make money.

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How To Trade Iron Butterfly

Iron Butterfly is one trade that a lot of traders in India try. So this article may be help to a lot of traders.

When To Trade Iron Butterfly:

This trade can be done when there is a sudden rise in volatility and the trader expects the volatility to drop in a few days and the stock to be range bound. Both volatility drop and passage of time helps the iron butterfly trade.

How To Trade Iron Butterfly:

Four trades are involved:

1) Sell One ATM (at the money) Call Option,
2) Sell One ATM (at the money) Put Option,
3) Buy One OTM (out of the money) Call Option, &
4) Buy One OTM (out of the money) Put Option.

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Double Your Money in 3 Months Is a Myth

Recently I am getting a lot of emails from a certain stock tip providing company that says: “Double Your Money in 3 Months.”

REALLY?

I mean dude start with 1 lakh yourself and end up making more than 31 crores in 5 years. Why are you selling this service when you can become extremely rich in matter of years? Your subscription collection will be paltry in 5 years, compared to what you can make in few months.

That’s the difference between my course and tips providers. They prey on lazy trader’s dream to get rich fast without any work, which never gets fulfilled. How can Gods make a lazy fellow rich? Try to recall one name who made a lot of money from tips providers? You won’t find any, because they do not exist.

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How To Trade Ratio Put Selling

A lot of traders love to trade Futures. Unfortunately most of them play it un-hedged or naked. Futures is highly leveraged derivatives and has a Delta of almost 1. Which means it moves 1 point with every 1 point move in the underlying. Isn’t this trying to take too much of risk? Remember you are leveraging your money.

Whatever, if done well, rewards are amazing. Futures can make you a fortune pretty soon or can take away all your wealth within months. Unlike options where the losers bleed slowly, Futures will bring results pretty fast.

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How To Trade Ratio Put Spread

A lot of times when a stock falls we get an idea that it may not fall further or may remain there for sometime in a range bound region. In such a scenario you can trade a ratio put spread.

How To Trade a Ratio Put Spread?

1. Buy X no of ATM (At the Money) Puts.
2. Sell X*2 (double) number of OTM (Out of the Money) Puts.

See the image below to understand the trade:

ratio put spread profit loss

Note: If you but 1 lot ATM put, you need to sell 2 lots OTM puts. But this can change depending on your view. For example if your view is pretty strong that the stock may not fall further, you may sell more than double number of puts than the number of puts bought. The point is you are taking a credit. You can sell as many puts you want, but the risk also increases.

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www.TheOptionCourse.com Copyright @ 2015 All Rights Reserved
INCOME DISCLAIMER: Any references in this site of income made from the trades by the traders taken the course are 100% correct and genuine.
I will give you their trades as proof.
However every trade depends on the trader and his level of risk taking capability and knowledge.
Moreover stock market investments are subject to market risks.
Therefore there is no guarantee that everyone will achieve the same or similar results.
My aim is to make you a better & disciplined trader with the strategies you get from it. Thank You.