Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and ForgetTraditional brokers charge a lot for brokerage; however, this broker does not charge anything for stock buying and selling. Also, you can set GTT (Good Till Triggered) order after buying a stock, so that the system can sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Also, you get a lifetime free account in Sensibull (virtual trading app & strategy builder) which charges Rs.800/-+GST a month. Learn option hedging strategy if you open an account today. It takes 5 minutes to open an account online. Click here and Open Free Account with Them Today >>
This post was written on 01-Feb-21 at 11.46 am.
Today, Monday, 01-Feb-21, is Union Budget 2021 day. Its live now in the Indian Parliament. Finance minister Nirmala Sitharaman is announcing the budget in the parliament now.
Whenever there is a major financial event, as a trader you should keep a track on India VIX:
As on 11.46 am it has already crashed more than 3.9% because the announced has started – the fall will be much swift from tomorrow. With time and very fast it will keep crashing irrespective of the movement of Nifty/stock markets.
What Will Happen?
Options buyers will suffer as the premiums will erode like ice melting, today and tomorrow especially.
If you have bought options and if in loss in such times, I suggest take a stop loss save as much as possible.
Option sellers have luck on their side on these melting India VIX days after the major event ends. Even if wrong up to some extent option sellers will benefit.
Update on 03-Feb-21 – see this graph of India VIX:
Note: India VIX was the highest one day before the budget 21 which was Friday, 29-Jan-21. It started to fall from the Budget day – 01-Feb-21. It will keep falling in future too.
Update on 04-Feb-2021 – India VIX dropped to 23.02 which is 3.07% less than previous closing:
For option traders India VIX is a very important factor to decide the future action. Its always good to buy options when India VIX is low and increasing. Which means you can buy options 3 to 4 days before a major financial event like union budget, RBI policy, state or general elections etc. And sell them just before the event day.
Once the event day is over you can start selling options.
Hope this article will help you to take a decision on when to buy and when to sell an option.
If you do my course you will be able to trade whenever you want and without too much risk as all trades are hedged. And most importantly you will not have to continuously watch the markets.
Click to Share this website with your friends on WhatsApp
COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading 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 stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.
Find 200+ testimonials of my course on these pages too posted year-wise:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020
Testimonials Year 2021
Testimonials Year 2022
Testimonials Year 2023
Testimonial of one of my client making 25k per week
Emotional Testimonial by a Young Woman Trader and Her Mother
Difference Between other Courses and Mine
What others charge for online courses
What People Say Just After Doing My Course
Bank Nifty Course Testimonials