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The StockViz mission is to make modern investment practices and systems affordable to the average Indian investor to help people trade and invest better.People
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Invest Without Emotions
Volatility surfaces is an important trading tool for option traders. Here’s a vol chart of RELIANCE OCT25 options. Note the spike in IV around earnings announcement, the fall-off in IV above and below the ATM strike (800), the spike in vol and the dramatic drop in lambda due the “fat finger” trade on the 5th. [stockquote]RELIANCE[/stockquote]
Our option strategy model, however, is not flashing any profitable trades in this scrip right now, owing to the uncertainty around the trend of the underlying and the high IV around earnings season.
The NIFTY ended on a negative tone, drifting down -0.64% for the week.
Biggest losers were DLF (-9.57%), SIEMENS (-7.74%) and BHEL (-7.01%).
And the biggest winners were SUNPHARMA (+4.50%), JPASSOCIAT (+4.45%) and ULTRACEMCO (+3.73%).
Decliners eclipsed advancers 32 vs 18Gold: +0.46%, Banks: -1.14%. Infrastructure: -1.50%
Net FII flows for the week: $1,345.00 mm (Equity) and -$20.21 mm (Debt)
Daily news summaries are here.
You can now get a live snapshot of the biggest movers within an index. Head over to the “Indices” page and click on “Movers.” The page is automatically refreshed every minute.
You an also track the top gainers and losers while you are at it 🙂
Using a Trailing Stop Loss (TSL) is one of the best ways to limit your downside and protect your winning trades. Instead of relying on your gut, here’s a straight-forward way to derive the appropriate TSL percentage for your trades.
ATR stands for Average True Range. It provides a measure of volatility that incorporates gap/limit moves. The range of a day’s trading is simply high – low. The true range extends it to yesterday’s closing price if it was outside of today’s range.1
To set a TSL percentage, just multiply the latest daily ATR value by 2 and divide by the previous close.
What you are doing here is simply attaching a risk tolerance level (2) based on the stock’s intra-day moves averaged over a period of time.
For example, if you were trading [stockquote]COLPAL[/stockquote] today, you would set the TSL to
2 * 30.5/1,250.65 = 4.88%
You can use StockViz to set a TSL alerts for your trades. Read this to see how.