Two-Step Combination Strategy: Combining Long Puts and Short Puts

Описание: Get 20+ Free Option Trading Tools
Signup here: https://web.quantsapp.com/?s=y
Download App: https://app.quantsapp.com/sr

In this video, we will be discussing how to trade a put spread by understanding higher implied volatility (IV) in put options.
First, we will explain what IV is and how it affects option prices.

IV is a measure of the expected volatility of an underlying asset, and it is one of the key factors that determine the price of an option. When IV is higher, options tend to be more expensive, and when IV is lower, options tend to be cheaper.

The higher IV in put options could increase the premiums received from selling the put option, which could potentially offset some of the cost of buying the put option with a higher strike price.

This creates a lower risk trade with a defined maximum loss and profit.
We will also discuss the importance of risk management and having a plan for exiting the trade if the market moves against us.

This includes setting defined loss orders and monitoring the position regularly. By the end of this video, you will have a better understanding of how to use higher IV in put options to trade a put spread, and how to manage risk in the process.

00.00: Introduction
01:20 Understanding IV through Option Chain
02:20 Market bullish and bearish behaviour
03:20 Why Put IVs are High.
09:40 Strategy and Trade Selection
10:15 Using Optimiser for Trade Selection

Get 20+ Free Option Trading Tools
Signup here: https://web.quantsapp.com/?s=y
Download App: https://app.quantsapp.com/sr


#putspreads #bullishmarket #bearishmarket #optionstrading #nseindia #nse #nifty #niftytrading #nifty50 #futuresandoptions #quantsapp #intraday