How to use OptionsOracle NSE (India)

This is basic guide on using OptionsOracle with example. I'll not go in-depth with other trading aspect. While initiating options trade lots of other things needs to be considered like volatility, direction, maximum risk, profit potential, days to expiry, etc.

Let's start with NIFTY chart analysis.

Based on chart, immediate range is in between 8670 and 7920. Let's try Iron Butterfly strategy for NIFTY. I have selected Iron Butterfly based on some other technical parameters.

Let's find out strikes:

1. Lower stop loss is 7920, let's consider nearest strike as 7900

2. Middle of range is 8270, let's consider nearest strike as 8300.

3. Upper stop loss is 8670, let's consider nearest strike as 8700

So we will short 8300 Call and 8300 Put, and will go long on Call 8600 and Put 7900.

1. Let's run OptionsOracle, you will see below screen.

2. In Symbol field, let's type "NIFTY" and click "Update".

3. After update, it will show below screen.

4. I'm interested in September series, so I need only September series data.
Click on "Sep 15" button to see only September data as shown below.

5. Let's build strategy by moving first leg of strategy. First I'll select PUT 7900 and drag it to "Strategy Positions".

6. Now I will drag Put 8300. After dragging it to "Strategy Position" I have to change it from Long to Short.

Click on drop down and select Short PUT.

7. Similarly I'll drag other strikes and will update complete strategy. Finally we will see as below:

8. Let's change quantity from 1 to 25 (minimum lot size in NIFTY).
Select on 1 in Quantity field and type 25 as shown below:

   
   Similarly, you can change price using Column "Price". 

9. After all changes it will look as below.

Maximum Loss Risk is Rs. 3965 (Not based on Stop Loss)
Maximum profit potential is Rs. 6035

Break even are at 8058 and 8541. So if NIFTY remains in-between these break evens, we will be in profit.

10. Let's analysis Strategy Graph. Click on Graph and you will get "Strategy Graph".

11. Let's find out our loss, if stop loss hits today. Click on "T" at Top Right. "T" stands for Today. Move cursor near to 8620 (our lower end stop loss), we can see our loss will be around Rs. 1040.

12. If market hits higher side stop loss today, our loss will be Rs. 1400.

So our maximum risk based on stop loss is Rs. 1400, maximum profit potential is Rs. 6035. Here risk reward ratio 1:4 roughly.

Hope this guide helps on how to use OptionsOracle.

For Advanced Options Strategy Trading Course (NIFTY, BankNIFTY, NSE Stocks), check Training->Option Trading. It's 2 days workshop.

Don't forget to post comments!!!

Disclaimer: This is only for educational purpose and not advisory to enter into trade. I'll not be responsible for any loss or risk. Options trading has large potential rewards, but also large potential risk.