Some
practical futures and options tips/lessons
·
When implied volatility (IV) of
deep-out-of-the-money PUT is very high, it indicates hedged positions.
·
Read newspaper options ticker as
below,
5900
(25, 25, 2.5, 14.15)
Strike
price (open, high, low close)
[42k,
832, 2454.4,] 3L, Feb 28
[traded
quantity, no.of contracts, notional value] open interest, date.
Traded
quantity= no.of contracts x lot size=832 x 50=41600 (42k)
3L=3
lakh=open...