Loss Aversion in Trading: Why We Hold Losers and Sell Winners
How loss aversion and the disposition effect shape trading decisions, how they show up in options and futures, and practical rules that reduce the damage.
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Risk Reversal: A Bullish Options Structure, Explained
How a risk reversal combines a sold put and a bought call option, a worked near-zero-cost example, how it compares with futures, the role of skew, and the risks.
Gamma Risk: Why Options Swing So Hard Near Expiry
What gamma is, why it spikes for at-the-money options near expiry, worked figures for buyers and sellers, and practical ways to manage gamma risk in India.
Expected Move: Reading the Market's Range From Option Prices
How to estimate the expected move from implied volatility or the at-the-money straddle, worked figures, what the range means, and how traders use it with care.
Theta Decay: How Time Erodes Option Premium
How theta decay works, why it accelerates near expiry, how it differs for ATM and OTM options, worked figures, and what it means for option buyers and sellers.
Cash and Carry Arbitrage: Shares Against Futures
How cash and carry arbitrage between shares and futures works, a worked example, why the spread is small, the costs and risks, and how arbitrage funds use it.
Bid-Ask Spread in Options: The Cost You Don't See on the Contract Note
What the bid-ask spread is, how to read market depth, worked costs on liquid and thin options, where spreads widen, and how limit orders reduce what you pay.
Broken Wing Butterfly: How It Works, With a Worked Example
How a broken wing butterfly shifts risk to one side, a worked example with strikes and breakevens, comparison with a regular butterfly, and when to use it.
Put-Call Ratio (PCR) Explained
How the put-call ratio is calculated from open interest and volume, how traders read high and low values, why it often misleads, and how to use it with care.
How to Choose an Options Strategy for Your Market View
A practical way to choose an options strategy: start from direction, size and timing, check implied volatility, pick defined or open risk, then size the position.
Long-Dated Options in India
What long-dated options are, which contracts tend to offer them, how they differ from weekly options, their uses for hedging and long views, and the costs.
Support and Resistance Explained
What support and resistance are, how traders identify them, why they sometimes hold, role reversal and false breakouts, and how to use levels for strikes and stops.