Sunday, May 31, 2020

Option trading using Volatility

Now here are the thumb rules for using options

1. if we expect the market to be in an uptrend in near future, and IV is less than HV, we shall BUY a call

2. if we expect the the market to be in an uptrend and IV is more than HV , we shall SELL a put

3 .if we expect the market to be in a downtrend, and IV is less than HV, we shall BUY a put

4. if we expect the market to be in a downtrend, and IV is more than HV, we shall SELL a call

"SELL HIGH VOLATILITY, BUY LOW VOLATILITY"

                    ................. more on option to continue


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