Credit Spreads: Bull Put and Bear Call Spreads
How a bull put spread and a bear call spread work, a worked example with breakeven and maximum loss, why the win rate is high and the ratio poor, and when to close.
Practical, expert-written guides on algorithmic trading with Python, Demat accounts, F&O strategies, taxation, and everything else Indian traders care about.
How a bull put spread and a bear call spread work, a worked example with breakeven and maximum loss, why the win rate is high and the ratio poor, and when to close.
Why winning option positions so often turn into losses, and exit rules for bought options, sold options and spreads: profit levels, time exits and trailing rules.
What revenge trading is, why breakeven is the wrong goal after a loss, why options make it worse, and the rules that stop it before it starts.
How a 1x2 ratio spread works, a worked example with breakevens, why being too right can lose money, and how a wing turns it into a defined-risk structure.
How a butterfly spread is built, a worked example with breakevens, why it earns little until near expiry, and the costs of four legs on a small maximum profit.
Averaging down lowers your cost and raises your stake. When it can be defended in shares, why an expiry date turns it against you in options, and what to do instead.
Margin funding, loans against securities, gold loans and cards. What each actually is, why the obligation is fixed while the outcome is not, and when it unwinds.
When a stock crosses its position limit, only reducing positions is allowed. What triggers it, what you can and cannot do, and the penalty for getting it wrong.
Own the shares, buy a put below, sell a call option above. What the collar protects, what it gives up, and the Indian details that change how it works.
The relationship linking a put and a call at the same strike and expiry, what it explains on the option chain, and why it is rarely a free lunch.
Margin tells you what a position blocks, not what it can cost. How to size against a defined worst case, and what to do when one lot is already too large.
In the money, at the money, out of the money - what changes as you move across the chain, and why the cheapest option is rarely the cheapest decision.