The options market may seem like a market segment that can help you turn quick profits. However, it is far from merely speculative trading. Most traders do not understand this, which is why options trading is often misinterpreted and considered similar to gambling or winning the lottery. This attitude explains why many FnO traders only hold an option for less than 30 minutes on average!
They do not have any strategy in place. They often rely on naked options trading. And needless to say, they end up with massive losses. A recent study conducted by the Securities and Exchange Board of India (SEBI) quantifies this accurately; 9 out of 10 F&O traders (or 90% of them) endure losses in the market. The average loss size is also significant — coming in at ₹1.1 lakhs!
In case you too have been unsuccessful in options trading, you’re not alone. Many traders have trouble finding the right options trading strategy for success. It is also nearly impossible to analyse multiple metrics in a fast-paced market. But do you want to overcome these limitations and improve your options trading profits?
If you answered yes to that, we at Samco Securities have just the solution you’re looking for. Say hello to Options BRO — our proprietary and pioneering options strategy builder.
A Closer Look at Options BRO: Build, Research and Optimise
Options BRO, a flagship feature in the Samco trading app, revolutionises options trading by addressing three fundamental aspects of participating in the F&O market — Build, Research and Optimise. Each aspect of our options strategy builder is designed to empower traders in the options market, so they can navigate the complexities of this segment more easily and efficiently.
Here’s how Options BRO helps you build, research and optimise every trading strategy that you may execute in the derivatives segment.
- Build: The First Step to Options Trading Success
Building a strategy is foundational to improving your trading performance. Instead of blindly opting for naked positions, you can use Options BRO to create a well-hedged strategy that aligns with your specific market outlook — whether you anticipate volatility or expect a bullish, bearish or neutral market.
For instance, say you anticipate a significant uptick in the price of a particular stock due to a positive earnings report. Using Options BRO, you can build a bullish strategy like a bull call spread and select the suitable call options that align with the price movement you forecast.
With Options BRO in the Samco trading platform, you can factor in the strike price and expiration dates of the options you’re interested in. You can also visualise the potential outcomes and profitability when you are building a strategy. What’s more, the Samco trading app also gives you an intuitive interface laden with real-time data — thus simplifying the complex process of formulating an options strategy. You can use our strategy builder to experiment with various combinations and scenarios without needing extensive background knowledge in options trading.
- Research: To Analyse Your Options Strategy
Once you have chosen and built a strategy using Options BRO in the Samco trading app, you need to research the strategy you’ve curated. You can use the extensive repository of research metrics in Options BRO to compare different options strategies. This research is pivotal for understanding the nuances and potential outcomes of each strategy under various market conditions.
For example, say you have built a bear put spread. You can use Samco’s Options BRO to explore various aspects of that position, assess historical performance data, look into payoff diagrams and analyse multiple scenarios with different target dates. This helps you fine-tune the approach based on thorough research.
Researching your strategy on the Samco trading platform is crucial because you can refine your trade based on empirical evidence and projections. With Options BRO, it is easier to thoroughly analyse your potential market position because we have integrated the options Greeks in this flagship feature. Once you gain a deeper understanding of options trading dynamics, you can navigate the market more effectively and improve your trading success.
- Optimise: To Find the Ideal Risk-Reward Balance
Every option strategy has two sides — the risks and the rewards. Once you’ve built and researched your strategy, you need to optimise it to strike the optimal risk-reward balance. Then, and only then, is your strategy fit to be executed in the market. Without a strategy builder like Options BRO, you may end up trading naked options, where the risks far outweigh any potential rewards — especially if you are the option seller.
In the Samco trading app, you get strategy recommendations for each risk profile: be it aggressive, moderate or conservative. By accounting for varying risk appetites among traders, Options BRO revolutionises F&O trading in a never-before-seen manner.
The strategy builder analyses various parameters like the probability of profit, maximum loss and maximum gain to recommend strategies that best fit your outlook and risk tolerance. For instance, if you want to minimise the risk while seeking a decent profit margin, you can use Options BRO to filter out strategies that offer a favourable balance between the two. You can also adjust the strike prices or expiry dates as needed to find the optimal outcomes.
How to Use Options BRO to Build, Research and Optimise Your F&O Trades?
To use this new, groundbreaking feature in the Samco trading app, you only need to submit three key details:
- The scrip or option that you want to trade in
- The expiration date for that scrip
- Your market outlook, which may be bullish, bearish, neutral or volatile
Once you’ve submitted these details, simply sit back and relax. Samco’s Options BRO then performs over 1.5 lakh mathematical computations, evaluates more than 2,000 option contracts and analyses over 1,000 option trading strategies — all in just a few seconds. Thereafter, once the complex analysis is complete, Options BRO gives you the top 3 trading strategies that align with your inputs.
Why three, you ask? That’s because we’ve designed this flagship feature in the Samco trading app to offer one top strategy for each risk profile — so aggressive, moderate and conservative traders can all trade in the right strategy at the right time and take calculated risks for better returns.
If you want to explore more strategies that fit in with your market outlook, Options BRO doesn’t disappoint. Beyond the top 3 strategies, you can also explore, research and optimise hundreds of other strategies that may be suitable for the market view you hold.
Become a Better Options Trader with Options BRO
True to its name, this industry-first tool helps you build, research and optimise your options trades seamlessly. If you’re wondering how much you’ll have to set aside each month to access this revolutionary feature, we have some great news for you. Samco Securities offers Options BRO to traders free of cost.
All you need to do is join the Samco community and download the Samco trading app to explore Options BRO at zero cost!
