Market Crash Got You Down? Try These Three Bearish Option Trades
With the market taking a turn for the worse yesterday, we’re going to look at how to find bearish options trade ideas using the Bear Put Spread Screener.
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With the market taking a turn for the worse yesterday, we’re going to look at how to find bearish options trade ideas using the Bear Put Spread Screener.
Option traders would do well to note that VIX usually rises in the fortnight ahead of Budget, with last year seeing a 66% rise during the same period, only to see a steep fall in VIX, post Budget, Anand James of Geojit said.
In a Bull Call Spread strategy, a trader simultaneously buys a call option while selling another call option with a higher strike price. This strategy is ideal when a moderate upside in the price of MCX Gold or Silver is anticipated. The goal is to capitalize on the potential price increase while offsetting the cost by selling a higher-strike call option.
Since it's an interim budget, major reforms are not expected. Global developments may provide directional triggers.
Rupak De, Senior Technical analyst at LKP Securities expects bearish trend to continue in the markets going ahead till the time Nifty stays below 19,500, with initial support likely around 19,330. A fall below this level could take the Nifty towards 19,250-19,200, he opines.