The Indian stock market is full of earning opportunities. If a particular trader has an outstanding plan and strategy, he can surely succeed in the Stock Market Trading. In this article, we are going to discuss a strategy to trade efficiently in the Stock market. This strategy is known as strange strategy for the options segment.
If you don’t know much about the Options segment trading, you can do get the assistance from advisory firms in the form of Stock futures Tips and Stock Option Tips.
This strategy of Strangle is a very important strategy and is widely used by the traders across the world. In this strategy the call and put of the same stock is bought at the same time. This strategy is applied when it is anticipated that the price will increase or decrease in one particular direction.
Thus, if any big news or event is anticipated, one can buy the call and put of that option. The strangle strategy should be followed at the right time. The strangle strategy is usually executed before a big movement. Thus, if the market misses a big movement, the strangle strategy will turn into a loss.
Similar to buying the put and call in the strangle strategy one can also sell the put and call of the option. In this case the strategy is known as reverse strangle strategy. If one is anticipating the market to move sideways or move in a range bound fashion, one can execute the reverse strangle strategy.
The reverse strangle strategy will work only when the market is range bound. This strategy will incur a loss, in case the market is trending. Thus the success of the Strangle as well as reverse strangle strategy is dependent on the market conditions.
There are many other strategies for the Options market. Similar to the Options segment there are different strategies for the futures traders. For some traders the Options segment is the best segment to trade. The reason for this is there is limited loss in the Options segment and there are chances of unlimited profits while trading in the futures segment. For some traders, trading in the Futures segment is the best way to make profits.
The good think about the futures segment is that one can trade in the futures segment with minimum investments. One can buy or sell the futures lot by making a limited investment. The other good thing about the futures segment is that one can sell the lots and take the sell position in delivery mode. That is one can sell the futures lot and hold the position for many days.
One can trade in the futures segment as well as options segment based on the Stock Futures Tips and Stock Option Tips from expert advisors.