Option Trade: Know when the Put option catches the speed of the rocket, the trader earns a bumper
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Option trading: For Bank Nifty option trading, just like hammer pattern is considered very strong for upward movement, similarly shooting star pattern is very important candle for downtrend. If a shooting star pattern is formed in Bank Nifty in a particular situation, then it gives a lot of correction to Bank Nifty. Due to which the option trader gets huge profit. The shooting star candle is a negative candle pattern, which is used to buy puts.
Shooting Star is a negative candle: Like the Hammer, the Shooting Star candle would also be a favorite candle for Bank Nifty option traders. If a shooting star candle is formed in a particular position after a significant rise in the graph of Bank Nifty, then investors buy puts after seeing this and they also get a huge profit from the market. The shooting star candle is a very important pattern for those trading the Bank Nifty or Nifty 50 options.
When does the shooting star candle give profits: Not every shooting star candle formed in the chart of Bank Nifty or Nifty 50 gives profits. It gives even bumper returns, so it is made in a special pattern. At that time the premium of the option also increases significantly, due to which the trader gets huge profits. According to expert Shiv Poojan Singh, it gives the maximum profit when the market is in a down trend and after rising 300 to 400 points, a shooting star candle is formed at the top. Such a pattern gives huge profits in option trading.
What is option trading: Let us tell you, option trade is such a contract under which the buying and selling of security takes place. Option trades are for a fixed period of time, which can range from a week to months. It has to be sold before expiry. Otherwise, the entire premium will automatically melt to zero. This can be a better source of instant earning. There are many people who earn crores in a single trade. However, there is also a possibility of loss in this.
Note: Option trading carries a high degree of risk. The option can become zero as soon as the premium is down. In such a situation, there can be a huge loss. Therefore, buy or sell the option only after the advice of an expert. If you trade after reading the news, Prabhat Khabar.com will not be responsible for your profit or loss.
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