Nifty 18 August 24,300 Put May Go to ₹150 If It Stays Above ₹20 — A Trader’s Scenario, Risk Management, Market Psychology and the Importance of ConfirmationIntroductionThe stock market is a place where possibilities, uncertainty, expectations, fear, greed, liquidity, volatility and changing market psychology continuously interact. In the derivatives market, the price of an option does not depend only on whether the underlying index rises or falls. Time remaining until expiry, implied volatility, option Greeks, liquidity, market sentiment and the relationship between the strike price and Nifty all influence the option
Writing Nifty 18 August 24,300 Put May Go to ₹150 If It Stays Above ₹20 — A Trader’s Scenario, Risk Management, Market Psychology and the Importance of Confirmation Introduction The stock market is a place where possibilities, uncertainty, expectations, fear, greed, liquidity, volatility and changing market psychology continuously interact. In the derivatives market, the price of an option does not depend only on whether the underlying index rises or falls. Time remaining until expiry, implied volatility, option Greeks, liquidity, market sentiment and the relationship between the strike price and Nifty all influence the option premium. Against this background, a trader may express the following scenario: “Nifty 18 August 24,300 Put may go to ₹150 if it stays above ₹20.” یہ جملہ کسی یقینی پیش گوئی کے طور پر نہیں سمجھنا چاہیے۔ یہ ایک conditional trading scenario ہے، یعنی مخصوص حالات پورے ہونے کی صورت میں ایک ممکنہ market outcome کا تصور۔ The basic idea is that if the Nifty 24...