Preface

Introduction
     Why I Started Trading
     What this Book Contains

1. Basics of Derivatives
   What Derivatives Are
   Futures Contracts
   Option Contracts
   Settlement of Options
   Trading Cycle
   Expiry Day
   Margin Money
   Futures and Options Contracts in a Nutshell

2. Option Terminology, the Option Chain and Open Interest
   Two Types of Options
   Options Terminology
   Option Chain
   Expiry of Derivatives
   Enter Weekly Expiry
   Breakeven Point
   Risk Reward Ratio
   Option Premium or Option Price
   Option Sellers versus Option Buyers
   Why Option Selling is More Profitable than Buying Options
   Summary

3. Understanding Option Greeks
   Delta
   Gamma
   Theta
   Vega
   How to Determine an Option's Premium Using Greeks
   Option Greeks in a Nut Shell
   Additional Resources
   Summary

4. Where is the Market Headed?
   Market View
   Put to Call Ratio (PCR)
   Max Pain
   Bollinger Bands
   India VIX
   Summary

5. Naked Trading Strategies for Option Sellers
   Understanding Margin Money
   Popular and Important Naked Options Strategies
   Naked Selling of Call Options (CE)
   Naked Selling of Put (PE) Option
   Short Strangle
   Short Straddle
   Revisiting the Greeks -- Briefly
   Summary

6. Hedged Trading Strategies for Option Sellers
   Bear Call Spread
   Bull Put Spread
   Iron Condor Strategy
   Iron Fly Strategy
   Differences between Naked and Hedged Option Strategies
   Summary

7. Selecting Strikes for the Iron Condor
   Understanding Standard Deviation
   Calculating 1SD of NIFTY
   Calculating 1SD of SBI
   Calculating 1SD of ITC
   Summary

8. Managing Ongoing Iron Condor Trades
   Thumb Rules for Managing Iron Condor Trades
   Adjustment Techniques
   Adjustment-1: Rolling Up or Rolling Down Existing Positions
   Adjustment-2: Doubling Your Non-Threatened Position
   Adjustment-3: Putting Additional Capital in the Same Expiry Cycle on the Threatened Side
   Adjustment-4: Putting Additional Capital in the Next Expiry Cycle on the Threatened Side
   Adjustment-5: Putting Additional Capital on Both Legs in the Next Expiry Cycle on the Threatened Side
   Adjustment-6: Close Existing Positions and Create a Fresh Delta Neutral Position
   When to Exit a Trade Instead of Making Adjustments
   Summary

9. My Real-Life Trades
   Start Your Trading Journey with Paper Trading
   The Trading System
   Trade-1: July 2020 Expiry
   Trade-2: August 2020 Expiry
   Trade-3: September 2020 Expiry
   Key Takeaways from My Real-Life Trades
   Summary

10. Roadmap to Earning Monthly Income from Options
    Entering a Trade
    Managing Your Positions
    Capital Required to Earn a Monthly Income from Options Trading
    Summary

11. Final Word