Business & Finance

The Ultimate Analysis of Options Chain Data Techniques for Maximising Trading Success

Published

5 months ago

February 23, 2024

Options trading is a lot more than merely buying or selling calls or putting options based on how you expect the market to move. While it may seem like a speculative market segment at first glance, true trading success in the F&O section relies on in-depth data analysis. You need to assess various data points like the strike price of the option, its nature and type, its last traded price (LTP), open interest, and more.

Unfortunately, a vast majority of traders only consider options trading as a speculative game. Recent data from the markets revealed that the average individual trader in this segment held an option contract for less than 30 minutes — indicating that not a lot of thought goes into options trading.

To empower traders and ensure they do not fall into this trap, we decided to upgrade the Samco trading platform and include the analytical tools required to make informed trading decisions. This led us down a path of discovery — where we found that one of the key issues plaguing options traders is the lack of access to real-time market data.

This is where Samco’s integrated options chain can make a world of difference. Equipped with extensive real-time data points that affect your strategy choice, this feature in the Samco trading app makes option chain analysis quick and efficient for traders using the Samco trading platform.

What to Look for in Options Chain Analysis?

Before you discover our integrated options chain, you need to have a clear understanding of what to look for in any option chain analysis. The sheer volume of data can be daunting for traders initially, but the pointers outlined below can help you make sense of the data in a typical options chain.

Strike Price

This is the price at which the option buyer can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset. Options are categorized as in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM) based on how their strike price compares to the current price of the underlying asset. You can use this classification to assess how profitable or not an option is.

Type of Options

Options can be classified as calls and puts. A call option gives the option holder the right to purchase the underlying asset at the strike price. A put option, on the other hand, gives the option holder the right to sell the underlying asset at the strike price. You need to understand the type of option as a part of your option chain analysis to identify a suitable trading strategy.

Last Traded Price (LTP)

Represents the last price at which an option was traded, the LTP indicates the market value of an option. You can use it to gauge the current demand and supply dynamics for a specific scrip, identify trends, and make informed decisions about when to enter and exit a trade.

Open Interest (OI) and % Change in OI

The OI represents the total number of outstanding option contracts that have not yet been settled. In other words, it measures the liquidity of a particular option. Increasing OI means new money is coming into the market, and decreasing OI signals that positions are being closed.

Change in Open Interest

This shows the day-over-day percentage change in open interest. In other words, you can use it to understand how new trading activity is affecting the market. A significant increase in OI may indicate that a trend is likely to continue, while a decrease might suggest a weakening trend or a potential reversal.

Samco’s Integration Options Chains: Not Your Average Data Set

While the data points outlined above can be found in standard option chains, we’ve gone the extra mile at Samco Securities and included a lot more than just strike prices, LTP, open interest, and the like. In the integrated options chain available in the Samco trading app, you can also find up-to-date information about options Greeks and implied volatility.

Using options Greeks in option chain analysis helps you understand how an option’s price is expected to change in response to different market variables — like the underlying asset’s price, the time left till expiration, and the implied volatility of the underlying asset. Understanding these Greeks allows traders to anticipate how their options might perform under various market conditions, enabling them to adjust their positions for optimal outcomes.

The implied volatility (IV), on the other hand, measures how much the market expects the price of the underlying asset to move over the life of the option. High IV values suggest that the market expects significant price volatility, which could lead to higher option premiums. In option chain analysis, this metric is crucial for strategies that capitalize on volatility rather than price direction.

By combining insights from the Greeks with IV, you can navigate and exploit market uncertainty, adjust your strategies to hedge against potential risks, or even leverage expected market movements for substantial gains.

Techniques for Maximising Trading Success with Samco’s Integrated Option Chain

To maximize trading success using option chains, you need to understand how to use the data gathered from option chain analysis to gain a practical advantage in the markets. Here are some techniques that can help achieve this goal.

Leverage High Volume and Open Interest

Identify options with high volume and open interest. These options are more liquid, so they’re easier to trade. High liquidity means you can enter and exit positions at competitive prices and reduce cost slippage.

Use Implied Volatility to Your Advantage

Implied volatility (IV) can suggest critical future price movements. Options with high IV are priced higher due to the anticipated volatility. So, use the IV data to gauge market sentiment and choose options trading strategies accordingly.

Choose the Right Expiration Date

Selecting an appropriate expiration date is crucial. Short-term options are less expensive and can provide significant returns if the stock moves in your favor quickly. However, they are also riskier due to the limited time for the stock to move.

Conversely, options with a longer term to expiry may be more expensive, but they give the stock more time to reach your target price. To improve your trading success rate, you need to balance the cost of the option with the time you believe the stock will take to move as desired.

Strike Price Selection

At-the-money (ATM) options balance the cost and potential return but come with higher premiums. On the other hand, out-of-the-money (OTM) options are cheaper and offer higher potential returns — but only if the stock makes a significant move. Naturally, they are also riskier. As a part of your option chain analysis in the Samco trading app, you need to assess your risk tolerance and market outlook before choosing from ATM, OTM, or even in-the-money options based on your goals.

Maximise Trading Success with Samco’s Integrated Options Chain

By integrating these techniques into your trading strategy, you can effectively complete your option chain analysis and navigate the options market more effectively. What’s more, with the integrated options chain in the Samco trading app, you can perform an in-depth evaluation of the market and its impact on your chosen scrip before executing a trade.

By integrating advanced metrics like options Greeks and more in the chain, we have redefined the scope of options chain analysis. To make the most of these insights and maximise trading success in the options segment, switch to Samco today, complete the Samco account opening process, and access comprehensive data points in our integrated options chain right away. The best part? You need not pay any additional fee whatsoever to use up-to-date insights and analytical data on our trading platform

Business & Finance

How to Use Online Loans to Finance Your Dream Home in the Philippines

Published

1 day ago

July 25, 2024

Anna Naomi

Owning a home is a dream for many Filipinos. It represents stability, security, and a solid investment for the future. However, the reality is that purchasing a property often requires a significant amount of money, which can be a daunting challenge. This is where loans online come into play, offering a convenient and accessible solution to help turn your dream of homeownership into a reality.

Understanding Online Loans for Home Financing

Online loans, also known as personal loans or cash loans, are a type of financing that allows you to borrow a lump sum of money from a lender. These loans are typically unsecured, meaning you don’t need to provide any collateral, such as a house or a car. Instead, lenders like Cash Express assess your creditworthiness based on factors like your income, employment status, and credit history.

One of the significant advantages of online loans is their convenience. You can apply for a loan from the comfort of your own home, without the need for lengthy paperwork or multiple branch visits. Online lenders leverage technology to streamline the application process, making it faster and more efficient.

Benefits of Using Online Loans for Home Financing

Quick Access to Funds: The approval process for online loans is generally quicker than traditional bank loans. This means you can access the funds you need for your home purchase more rapidly, allowing you to act quickly in a competitive real estate market.
Flexible Repayment Terms: Online lenders often offer flexible repayment terms, allowing you to choose a schedule that fits your budget and financial situation. This can make it easier to manage your monthly expenses while paying off your loan.
No Collateral Required: Since online loans are typically unsecured, you don’t need to put up any collateral, such as your home or car. This can be especially beneficial if you’re a first-time homebuyer or have limited assets.
Competitive Interest Rates: Many online lenders offer low interest rates, which can help you save money eventually compared to other financing options.

How to Use Online Loans for Home Financing

Determine Your Financing Needs: Start by calculating the total cost of your dream home, including the purchase price, closing costs, and any necessary renovations or repairs. This will help you determine the amount you need to borrow.
Check Your Credit Score: Lenders will review your credit score to assess your creditworthiness. Check your credit report and address any errors or issues that could negatively impact your score.
Shop Around for Lenders: Research different online lenders and compare their interest rates, fees, and repayment terms. Look for lenders with positive reviews and a reputation for transparency and excellent customer service.
Apply for the Loan: Once you’ve chosen a lender, complete the online application process. Be prepared to provide information about your income, employment, and any outstanding debts.
Use the Loan for Your Home Purchase: Upon approval and disbursement of the loan, use the funds to finance your dream home purchase. You can use the loan to cover the down payment, closing costs, or any other expenses related to the transaction.
Manage Your Repayments: Develop a budget and stick to your repayment schedule to avoid late fees and potential credit score damage. Consider setting up automatic payments to ensure you never miss a payment.

Tips for Successfully Using Online Loans for Home Financing

Improve Your Credit Score: A higher credit score can qualify you for better interest rates and loan terms. Pay your bills on time, reduce your debt-to-income ratio, and avoid opening new credit accounts before applying for a loan.
Consider a Co-Borrower: If your income or credit score is not strong enough, consider applying for the loan with a co-borrower, such as a family member or a spouse, to increase your chances of approval and potentially qualify for better terms.
Explore Additional Financing Options: Online loans can be a great solution, but you may also want to explore other financing options, such as government-backed loans or traditional mortgage loans, to find the best fit for your situation.
Understand the Terms and Conditions: Before signing any loan agreement, carefully read and understand the terms and conditions, including interest rates, fees, and repayment schedules. Don’t hesitate to ask questions or seek clarification from the lender.

Owning a home is a significant investment, and online loans can provide the financial support you need to make your dream a reality. By following these tips and working with a reputable online lender like Cash Express, you can navigate the home financing process with confidence and achieve the goal of homeownership in the Philippines.

Business & Finance

Dubai’s One Za’abeel F&B Scene Unveiled

Published

3 months ago

April 27, 2024

Muhammad Shahid

Photographed with the adept eyes of Alex Jeffries, The Hotels restaurants, have been unveiled and launched to the world, including Street XO, La Dame De Pic, DuangDy, Qabu and Andaliman.

Discover the Link

A futuristic boulevard floating above the city, The Link is home to four signature restaurants from Michelin-lauded chefs, elevated all-day dining, and Arrazuna, a reimagined gourmet food hall.

Design Team

The link is now officially recognised as the world’s Longest Cantilevered Building. One Za’abeel has been awarded a total of four Guinness World Records now, including the one for the iconic 230-meter long cantilevered skybridge – The Link that joins the two towers of the scheme and spans over a major four-lane highway. Both reputable design companies LW and Social F+B have been involved with the design

Location

No stranger to Hospitality and restaurants and bars photography Alex Jeffries Photography Group were thrilled to be asked to photograph the new F&B venues in the Link, located in the well-known uber new luxury hotel, the One & Only, Za’abeel One, Dubai.

Capturing Architectural Harmony – Interior Design Excellence

Interior photography by Alex Jeffries, a firm favourite, was chosen by many of the leading Architecture, Lighting, and Interior Design companies in Dubai to help them build a portfolio and win awards in local and global competitions.

About Alex

Alex Jeffries is a British Photographer, working and photographing around the region for over fifteen years, qualified with the British Institute of Professional Photography, the Federation of European Professional Photographers and the British Master Photographers Association.

Specialty

Alex specialises in Interior Photography, Architecture and Hotels and Hospitality. Regularly shooting for many of the global brand Hotels that have a footprint in the region, Alex specialises in shooting at the pre-opening stage, in helping launch a new hotel to the market.

What can Alex do for you?

Interior photography by Alex Jeffries – What can Alex do for you? He specialises in helping Interior and Architecture clients build their portfolios and win awards. And with his proven solid experience in the region helping launch to market many of the local and global Hotel brands that demand and expect the highest standards his professional experience ensures you will get the return on investment you need.

Business & Finance

Unlocking the Power of Customer Reviews for Your Business

Published

5 months ago

March 10, 2024

Anna Naomi

Welcome to our guide on how to get reviews for your business! In today’s digital age, customer reviews play a crucial role in shaping the reputation and success of businesses. In this article, we’ll explore the importance of customer reviews, effective strategies for obtaining them, and common questions businesses have about soliciting feedback from customers.

Understanding the Impact of Reviews

Customer reviews provide valuable insights into the quality of products or services offered by a business. They serve as social proof, helping potential customers make informed purchasing decisions. Positive reviews can enhance credibility, attract new customers, and improve search engine rankings, while negative reviews can damage reputation and deter potential customers.

Key Strategies for Obtaining Reviews

Provide Excellent Customer Experience: Offer exceptional products and services to ensure customer satisfaction and increase the likelihood of receiving positive reviews.
Ask for Reviews: Actively encourage satisfied customers to leave reviews by including a call-to-action on receipts, invoices, or follow-up emails.
Utilize Review Platforms: Create profiles on popular review platforms such as Google My Business, Yelp, Facebook, and industry-specific sites where customers can easily leave reviews.
Offer Incentives: Offer incentives such as discounts, coupons, or loyalty points in exchange for leaving a review, but ensure compliance with platform guidelines.
Make It Easy: Simplify the review process by providing direct links or instructions on how to leave a review on various platforms.

Steps to Obtain Reviews for Your Business

Identify Review Channels: Determine which review platforms are most relevant to your business and where your target audience is likely to search for reviews.
Develop a Review Request Process: Create a standardized process for requesting reviews from customers, including when and how to ask for feedback.
Train Your Staff: Train your employees on the importance of reviews and how to ask customers for feedback in a polite and non-intrusive manner.
Monitor and Respond: Regularly monitor review platforms for new reviews and respond promptly, whether they are positive or negative, to show that you value customer feedback.
Track Performance: Track the number of reviews received, sentiment, and any changes in customer behavior or sales attributable to reviews.

FAQs (Frequently Asked Questions)

Can I ask customers to leave reviews? Yes, it’s acceptable to ask satisfied customers to leave reviews, but be sure to do so in a respectful and non-coercive manner.
Is it ethical to offer incentives for reviews? Offering incentives for reviews is acceptable as long as it complies with platform guidelines and doesn’t influence the content of the review.

Conclusion

In conclusion, obtaining reviews for your business is essential for building trust, credibility, and reputation among customers. By implementing effective strategies and soliciting feedback from satisfied customers, businesses can harness the power of reviews to attract new customers, retain existing ones, and drive long-term success.