The Straddle is an extremely common Options strategy that is widely used by traders. A straddle can be implemented when the market is expected to make a big move in either direction or remain sideways. The straddle Index in Quantsapp is an indicator that provides all of the important data points that are required to execute a Straddle strategy.
Quantsapp is an online Options trading analytics platform that provides various tools and indicators for options traders. Quantsapp provides many features such as Trap Indicator, Open Interest Analysis, Options Chain, etc. One of its unique features is the Straddle Index.
Before looking at what is the Straddle Index Quantsapp, let's first find out what is a Straddle.
A straddle is an Options strategy that involves buying or selling both, a Call option as well as a Put Option of the same Strike price, at the same time and of the same underlying asset. A straddle can be implemented in two different ways, 1. Long Straddle, 2, Short Straddle.
Both these strategies are executed in different situations. A long straddle is used when the underlying asset is expected to make a big move in either direction. On the other hand, Short straddles are used when the underlying is not expected to make a big move. This is employed when the general sentiments are neutral or within a range.
The Straddle Index in Quantsapp is an indicator that shows many factors of a Straddle on a particular stock or index. For example, Nifty, ITC, Reliance Industries, etc. The dashboard of the straddle index is shown below.
As the above image suggests, The Straddle Index by Quantsapp has a total of 6 parts that makes up the overall indicator. While implementing a Straddle strategy, an options trader needs to look at some important data points. Quantsapp has integrated all the necessary features in one place. Some of the important data points include:
The Straddle Index is a good tool for options traders as it provides various parameters of Straddles within one window. By following the above methods one can denote the approx margin money and the total Profit & Loss by analyzing the IV and change in the Straddle price.
Quantsapp is an online Analytics platform that provides various tools for Options and Derivatives traders. Quantsapp proprietarily provides various solutions to option traders in order to increase their profitability. One of its unique indictors is the "Trap Indicator" which helps traders identify opportunities based on the trap situations created in the markets. Discover how it can be utilized.
Options Trading as a trend is on the rise these days and is gathering more Retail attention. Due to this, the Option Trading platforms which provide tools for options traders are equally in high demand. Quantsapp and Sensibull are two of the prominent players in this field. Identify what are the differences, similarities, and which one to choose among the two.
Quantsapp is an online Options analytics platform that provides many tools and features to option traders. It is free to use, but not completely. There are two price models that it offers at present. Both of them provide access to different features and tools. This gives an individual to choose anyone according to their preferences.
As more and more people try their hand in Options trading, the demand for good Options trading and analytics platforms is on the rise. There are many online options trading platforms out there. Know if Quantsapp is a good online Options Analytics platform.
Open Interest is a parameter used by technical analysts and options traders to judge the mood of the market. Open Interest is the total number of outstanding option contracts in a particular strike price of an underlying asset. The OI is an important factor as it defines liquidity and the total number of contracts that are traded at a particular point in time.
Options trading involves two aspects. One is options buying and the other is options selling. To buy an ATM option you will require around Rs 10,000 to Rs 25,000 per lot for an Index or stock option. On the other hand, you will require close to Rs 95,000 to Rs 1,50,000 for selling 1 lot of index option. These amounts change with respect to the time remaining to expiry and other market conditions.
Options trading offers many options to traders, investors as well as hedgers. There are some common mistakes that option traders commit. Five of the most common mistakes are, taking too much leverage, not having a pre-defined stop loss and target, acting on tips on social media, adhering to buying options, and taking unhedged trades.
Options trading involves many factors such as Options Greeks. Options Greeks like Delta, Theta, and Gamma have the most impact on Option prices towards the end of the expiry. The option premiums are impacted highly by Gamma and Delta on the day of expiry. Learn more about Options greeks and how they impact option premiums.
If you forget to square off your option contract at the end of the day, the contract will automatically be settled if it's an in-the-money option. The contract would be settled on the expiry date and will be sold at the market price.
Options Premiums are primarily made up of two values. Intrinsic Value and Time Value. Whereas the change in the price of the Option premiums is dependent on five factors called Option Greeks. These are Delta, Gamma, Theta, Vega, and Rho. Know more about options greeks and which Greeks should a trader keep an eye on while trading Options.