In options trading, you can implement strategies based on different market outlooks be it bearish, bullish, or neutral. Though it might get difficult to curate all the strategies by yourself, you can instead use the readymade strategies.
Let’s understand the benefits of readymade options and how they can make your options trading journey simple.
Benefits of Using Pre-built Option Trading Strategies
Option trading strategies come up with various benefits and they are combinations of calls and puts wherein you have to buy or sell ATM (at-the-money), ITM (in-the-money), or OTM (out-of-the-money) calls and puts as per the market outlook. These strategies will help you limit the loss or increase the profit potential.
Here are some of the advantages of using readymade options:
- Access to Popular Strategies
You can get many pre-built option strategies such as bull call spread, bear put spread, put ratio spread, short straddle, short strangle, iron condor, etc. You can also combine two or more as per your choice.
These curated will help you save time in options trading and you can focus more on choosing the profitable option contracts. Also, you can access all the for free which means it helps in saving money as well.
- Covered in All Contracts
You can get ready-to-use option strategies for different calls and put option contracts for underlying assets such as Nifty 50, Nifty Bank, etc. You can even make internal changes in the strategies as per your market analysis trendytarzen.
You can filter out the for each scrip based on bullish, bearish, any direction, and non-directional market outlooks.
- Analyze Real-Time Performance
You can see the real-time P&L (Profit and Loss) table and graph to know how much gains or losses you can make from each strategy. Along with the potential profit or loss, you can check the days to expiry for each contract which helps you in decision-making.
In order to select the best scrip, you can check out the breakeven point or potential payoff of all the on a real-time basis. This will also help you select the ideal position size according to your risk appetite.
- Multiple Order Execution
You can execute two or more pre-built selected option strategies at the same time by adding them to a basket. This is a real-time feature and you can add scrips in the basket and know how much total margin is required to execute them.
You can see how much funds you already have in your account and what more is required to be added to fulfill the margin requirement. You can add or delete the scrips from the basket in the manage basket tab.
Conclusion
Readymade option can make your trading simple and hassle-free as you can get more than ten popular for free. These strategies are available for all the options contracts and you can analyze the payoffs of each strategy on a real-time basis. You can also add multiple scrips in the basket and execute them in a single click. All these functionalities are offered in the Dhan Options Trading App which is a fully safe and best app for options trading.
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