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Options - Next Gen Volume Maker

FinIdeas Management Solutions Pvt. Ltd.
FinIdeas Management Solutions Pvt. Ltd.

This document discusses the importance of educating trading teams on options. It notes that educating teams is like planting trees that will bear fruit during boom periods by boosting business. Education provides insurance during bear markets by helping traders perform well when others face troubles. Better knowledge of teams increases customer faith and guidance. The document advocates accepting changes to remain a market leader for years to come. It outlines objectives like client satisfaction and consistent revenue. The psychology and preferred markets of dealers is discussed. Different risk scenarios, views, strategies and investor risk profiles are presented. The growth of options trading volumes over futures is highlighted. Having options products and knowledge is positioned as attracting more clients and opportunities. The benefits of FinIdeas options courses

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Today's Planting = Tomorrow's fruits Educating Team is like Planting Trees. It will gives you fruits of boosting your business in Boom Period 3
Education is Insurance for bearish period Education insures your future against bearish time in the market. It will help you to stand in market when others are facing troubles. 4
Knowledge of team increase customer's faith Customer has always put their faith on people who have given better guidance Better guidance comes from better knowledge. Hence we have to train our team to face any situation of the market. 5
Accept the change and lead the market for years to come People who dont accept the changes, normally phase out in new era. Hence list of top 10 ten brokers change every 10 years. Amitabh Bachan is leading in film industry from past many years because he has accepted the changes in his roles. 6
What are the Brokers Objective Client Satisfaction Run a Scalable Business Model Consistent Revenue Month on Month In-depth Knowledge for Perfect Advisory Optimum Utilization of Clients Fund and Stocks 7
What is your Dealers' psychology? Normally dealer trades or advise in the market/scrip where he is having good command. 8
9
Risk Scenario 10
Different type of views attract clients Bullish Bearish Volatile Range bound Slightly Bullish or Bearish Heavily Bullish or Bearish 11
Different Strategies attract Clients Bull Call Spread / Bear Put Spread Straddle / Strangle / Strip / Strap Butterfly / Condor Price Ratio / Delta Ratio / Theta Ratio Short Gamma / Long Gamma Low Delta short Vega Book Building Volatility Spread Expiry Day strategy Long Term Options Strategy Synthetic Options Strategy 12
Investors Risk Return Profile Investors are also safe when they trade in Options He can choose limited loss or low risk strategies suitable to his risk profile Options are the best tools to earn Time Value 13
More Traders are Moving to the Options Margins are shrinking in Cash to Future and Future to Future Segment And more players are shifting to Options trading Hence the scope is larger for informed participants 14
Market Share in last 12 Years Future Market Options Year Share Market Share Here you can see that 2001-02 71% 29% Options market share 2002-03 76% 24% 2003-04 87% 13% has grown drastically 2004-05 89% 11% in last five years. 2005-06 88% 12% 2006-07 86% 14% 2007-08 85% 15% 2008-09 66% 34% 2009-10 48% 52% 2010-11 34% 66% 2011-12 25% 75% 2012-13 23% 77% 15
Market Volume Equity Vs. Derivatives Month Equity Market Turnover Derivatives Market Turnover (Rs. In Cr.) (Rs. In Cr.) May 2012 2,16,755 27,19,843 April 2012 1,98,324 22,07,316 16
Market Volume Equity Vs. Options Equity Market Turnover Option Market Turnover Day (Rs. In Cr.) (Rs. In Cr.) 3rd July 2012 10,363 62,987 17
Market Volume Who will get more fishes ? A person who is fishing at lake ? Or a person who is fishing at sea ? 18
The Bigger Cake.. The Bigger Bite Where is more opportunity of earning? In lake or in sea ? In 2,00,000 Cr. Market or in 27,00,000 Cr. Market ? Which cakes bite is bigger ? 19
Research and Options Products Only 1% or 2% of your clients are trading as per members research but because of this research, equity traders are getting attracted to that member Same as.. If we have various option strategies then all the option traders will be attracted to us. And automatically we will be in the market with daily volume of Rs. 60,000 Cr The Bigger Cake The Ocean 20
Please Note In this dull market scenario Options Volume are generated only by Arbitrageurs and FII's mostly as DII's are restricted. 21
What FIIs needs ? FIIs also needs the smart people in derivatives market If you have Options strategies then you can also attract the FIIs to work with you. 22
The New Era of Options Every Bull Market Brings new things to market Next Bull Market will be very much dedicated to Options Options are going to get introduced in Commodity section too very soon NSE will introduce VIX Future and VIX Options very soon Again Knowledge about this section will be required Brokers with advanced knowledge will be winner in next bull market 23
The Next Generations of Options Currently, We are trading in plain vanilla options The Next Generations are binary options or barrier options So, first we have to understand plain vanilla options in depth Then only we can move forward 24
Do you know how price of an option Changes ??? Spot Changes Rate of Strike Interest Option Changes Changes Price Changes Time to Volatility Maturity Changes Changes It requires knowledge of Option Greeks to evaluate the impact on Option Price 25
26
Actually Risk is only for 127 shares. Position is only 127 shares Long. 27
Option Greeks are like a Thermometer It shows degree of risk in your portfolio 28
Option Greeks measures the risk of Option Portfolio Vega Delta Theta Gamma Rho 29
A trader, who knows Option Greeks can identify the Opportunity in Option Markets very easily 30
Option Price changes due to change in Spot or Change in Volatility or both We should be in a position to judge the Volatility Spot Price impact of change in Spot or Vol 31
Option behaviour is completely different at starting of month, middle of month and end of month 32
Option behaviour is completely different for ATM, OTM and ITM 33
Boom 34
How do we serve you in knowing Options ? Provide you Basic and Advanced Option Greeks Knowledge Standard and FinIdeas Strategies Practical Orientation of Option Course Question Bank Simple Language to Learn Complex Option Discussion on Present Trading Methodology FinIdeas Options Tool-kit 35
How FinIdeas helps you ? We will train your team in Option Greeks We will give them revisionary webinar batches so that people will be live after training also Trading platform that should also be equipped with all the strategies / Greeks / Option chain etc. Complex Options. Simple Solutions. 36
Complex Options. Simple Solutions. 37
About FinIdeas FinIdeas was founded with a goal to educate people in the field of Equity & Derivative markets and provide them software which would give them an edge in trading. We achieve this by focusing on constant enhancement of our knowledge base and technological edge. We are a team of young and committed individuals having diverse educational and experience. We are committed to an ambitious and forward-thinking culture and are always on a look out for the next big opportunity. 38
About us Team working together since 2008 Team of Individuals having diverse Education and Experience We deliver world class software and quality education to Stock Markets traders and investors. Focused on constant enhancement of knowledge and technology base. Ambitious and forward thinking culture. 39
Vision Software Segment We intend to equip the Industry with the best real-time softwares to analyse and trade in the stock markets. Our vision is to develop software befitting the requirements of all types of market participants like speculators, arbitrageurs, hedgers and investors. Education Segment We intend to become the most preferred training Institute in the field of Equity & Derivative markets with a focus towards practical sessions in simulated market environment using innovative technologies. Our goal is to make people aware of risk and return prevailing in different segments and ways to manage it effectively. 40
Mission We intend To become a benchmark product and service provider for Equity & Derivative markets in India To Identify Industry's trading needs, problems and provide solution related to it. Each of our leaders brings in diversified experience from various fields of the above segments. Our infrastructure and processes coupled with our sincerity and passion is what makes us confident of achieving our goals and making our vision a reality. 41
Why FinIdeas ? Experienced Founders Innovative Research Options Expertise Education Edge Dedicated Development Team Online Support One Stop Solution 42
Our Softwares.. VolHedge FinGraph EasyRMS Online Options Greeks Think it, Plot it Manage Risk , the Easier Management Tool way FinExcel FinTester Export to Excel Test your Strategies FIST FinSimulator FinBroadcaster and many more to come.. 43
Our Esteemed Clients Continue. 44
Our Esteemed Clients and many more 45
Benefits from FinIdeas Courses Application of Options Knowledge to Stock Options, Currency Options & Commodity Options FinIdeas Study Material FinIdeas Option Calculator FinIdeas Option Excel Sheet FinIdeas Greek Option Excel Sheet FinIdeas Live OI/PCR Sheet Virtual Class for solving Auto Generated Questions Course Certification Free software usage for One Month on completion of Training 46
Dharmesh Mr. Shailesh B. Shah: +91 93749 85600 Shailesh.Shah@finideas.com Web site: www.finideas.com || E-mail: info@finideas.com 47

More Related Content

Options - Next Gen Volume Maker

  • 1. 1
  • 2. 2
  • 3. Today's Planting = Tomorrow's fruits Educating Team is like Planting Trees. It will gives you fruits of boosting your business in Boom Period 3
  • 4. Education is Insurance for bearish period Education insures your future against bearish time in the market. It will help you to stand in market when others are facing troubles. 4
  • 5. Knowledge of team increase customer's faith Customer has always put their faith on people who have given better guidance Better guidance comes from better knowledge. Hence we have to train our team to face any situation of the market. 5
  • 6. Accept the change and lead the market for years to come People who dont accept the changes, normally phase out in new era. Hence list of top 10 ten brokers change every 10 years. Amitabh Bachan is leading in film industry from past many years because he has accepted the changes in his roles. 6
  • 7. What are the Brokers Objective Client Satisfaction Run a Scalable Business Model Consistent Revenue Month on Month In-depth Knowledge for Perfect Advisory Optimum Utilization of Clients Fund and Stocks 7
  • 8. What is your Dealers' psychology? Normally dealer trades or advise in the market/scrip where he is having good command. 8
  • 9. 9
  • 11. Different type of views attract clients Bullish Bearish Volatile Range bound Slightly Bullish or Bearish Heavily Bullish or Bearish 11
  • 12. Different Strategies attract Clients Bull Call Spread / Bear Put Spread Straddle / Strangle / Strip / Strap Butterfly / Condor Price Ratio / Delta Ratio / Theta Ratio Short Gamma / Long Gamma Low Delta short Vega Book Building Volatility Spread Expiry Day strategy Long Term Options Strategy Synthetic Options Strategy 12
  • 13. Investors Risk Return Profile Investors are also safe when they trade in Options He can choose limited loss or low risk strategies suitable to his risk profile Options are the best tools to earn Time Value 13
  • 14. More Traders are Moving to the Options Margins are shrinking in Cash to Future and Future to Future Segment And more players are shifting to Options trading Hence the scope is larger for informed participants 14
  • 15. Market Share in last 12 Years Future Market Options Year Share Market Share Here you can see that 2001-02 71% 29% Options market share 2002-03 76% 24% 2003-04 87% 13% has grown drastically 2004-05 89% 11% in last five years. 2005-06 88% 12% 2006-07 86% 14% 2007-08 85% 15% 2008-09 66% 34% 2009-10 48% 52% 2010-11 34% 66% 2011-12 25% 75% 2012-13 23% 77% 15
  • 16. Market Volume Equity Vs. Derivatives Month Equity Market Turnover Derivatives Market Turnover (Rs. In Cr.) (Rs. In Cr.) May 2012 2,16,755 27,19,843 April 2012 1,98,324 22,07,316 16
  • 17. Market Volume Equity Vs. Options Equity Market Turnover Option Market Turnover Day (Rs. In Cr.) (Rs. In Cr.) 3rd July 2012 10,363 62,987 17
  • 18. Market Volume Who will get more fishes ? A person who is fishing at lake ? Or a person who is fishing at sea ? 18
  • 19. The Bigger Cake.. The Bigger Bite Where is more opportunity of earning? In lake or in sea ? In 2,00,000 Cr. Market or in 27,00,000 Cr. Market ? Which cakes bite is bigger ? 19
  • 20. Research and Options Products Only 1% or 2% of your clients are trading as per members research but because of this research, equity traders are getting attracted to that member Same as.. If we have various option strategies then all the option traders will be attracted to us. And automatically we will be in the market with daily volume of Rs. 60,000 Cr The Bigger Cake The Ocean 20
  • 21. Please Note In this dull market scenario Options Volume are generated only by Arbitrageurs and FII's mostly as DII's are restricted. 21
  • 22. What FIIs needs ? FIIs also needs the smart people in derivatives market If you have Options strategies then you can also attract the FIIs to work with you. 22
  • 23. The New Era of Options Every Bull Market Brings new things to market Next Bull Market will be very much dedicated to Options Options are going to get introduced in Commodity section too very soon NSE will introduce VIX Future and VIX Options very soon Again Knowledge about this section will be required Brokers with advanced knowledge will be winner in next bull market 23
  • 24. The Next Generations of Options Currently, We are trading in plain vanilla options The Next Generations are binary options or barrier options So, first we have to understand plain vanilla options in depth Then only we can move forward 24
  • 25. Do you know how price of an option Changes ??? Spot Changes Rate of Strike Interest Option Changes Changes Price Changes Time to Volatility Maturity Changes Changes It requires knowledge of Option Greeks to evaluate the impact on Option Price 25
  • 26. 26
  • 27. Actually Risk is only for 127 shares. Position is only 127 shares Long. 27
  • 28. Option Greeks are like a Thermometer It shows degree of risk in your portfolio 28
  • 29. Option Greeks measures the risk of Option Portfolio Vega Delta Theta Gamma Rho 29
  • 30. A trader, who knows Option Greeks can identify the Opportunity in Option Markets very easily 30
  • 31. Option Price changes due to change in Spot or Change in Volatility or both We should be in a position to judge the Volatility Spot Price impact of change in Spot or Vol 31
  • 32. Option behaviour is completely different at starting of month, middle of month and end of month 32
  • 33. Option behaviour is completely different for ATM, OTM and ITM 33
  • 34. Boom 34
  • 35. How do we serve you in knowing Options ? Provide you Basic and Advanced Option Greeks Knowledge Standard and FinIdeas Strategies Practical Orientation of Option Course Question Bank Simple Language to Learn Complex Option Discussion on Present Trading Methodology FinIdeas Options Tool-kit 35
  • 36. How FinIdeas helps you ? We will train your team in Option Greeks We will give them revisionary webinar batches so that people will be live after training also Trading platform that should also be equipped with all the strategies / Greeks / Option chain etc. Complex Options. Simple Solutions. 36
  • 37. Complex Options. Simple Solutions. 37
  • 38. About FinIdeas FinIdeas was founded with a goal to educate people in the field of Equity & Derivative markets and provide them software which would give them an edge in trading. We achieve this by focusing on constant enhancement of our knowledge base and technological edge. We are a team of young and committed individuals having diverse educational and experience. We are committed to an ambitious and forward-thinking culture and are always on a look out for the next big opportunity. 38
  • 39. About us Team working together since 2008 Team of Individuals having diverse Education and Experience We deliver world class software and quality education to Stock Markets traders and investors. Focused on constant enhancement of knowledge and technology base. Ambitious and forward thinking culture. 39
  • 40. Vision Software Segment We intend to equip the Industry with the best real-time softwares to analyse and trade in the stock markets. Our vision is to develop software befitting the requirements of all types of market participants like speculators, arbitrageurs, hedgers and investors. Education Segment We intend to become the most preferred training Institute in the field of Equity & Derivative markets with a focus towards practical sessions in simulated market environment using innovative technologies. Our goal is to make people aware of risk and return prevailing in different segments and ways to manage it effectively. 40
  • 41. Mission We intend To become a benchmark product and service provider for Equity & Derivative markets in India To Identify Industry's trading needs, problems and provide solution related to it. Each of our leaders brings in diversified experience from various fields of the above segments. Our infrastructure and processes coupled with our sincerity and passion is what makes us confident of achieving our goals and making our vision a reality. 41
  • 42. Why FinIdeas ? Experienced Founders Innovative Research Options Expertise Education Edge Dedicated Development Team Online Support One Stop Solution 42
  • 43. Our Softwares.. VolHedge FinGraph EasyRMS Online Options Greeks Think it, Plot it Manage Risk , the Easier Management Tool way FinExcel FinTester Export to Excel Test your Strategies FIST FinSimulator FinBroadcaster and many more to come.. 43
  • 44. Our Esteemed Clients Continue. 44
  • 45. Our Esteemed Clients and many more 45
  • 46. Benefits from FinIdeas Courses Application of Options Knowledge to Stock Options, Currency Options & Commodity Options FinIdeas Study Material FinIdeas Option Calculator FinIdeas Option Excel Sheet FinIdeas Greek Option Excel Sheet FinIdeas Live OI/PCR Sheet Virtual Class for solving Auto Generated Questions Course Certification Free software usage for One Month on completion of Training 46
  • 47. Dharmesh Mr. Shailesh B. Shah: +91 93749 85600 Shailesh.Shah@finideas.com Web site: www.finideas.com || E-mail: info@finideas.com 47