In this article, we will discuss:
- The Significance of Different Market Events for Options Traders
- Never Miss a Trading Opportunity with Samco’s Updated Events Calendar
- Beyond Events Tracking: Personalise Your Feed in the Samco Trading App
Trading in options is much more nuanced than trading in the equity market. This is because an option’s price is influenced by a vast array of factors — including the underlying asset’s price, the time to expiration, the implied volatility of the underlying asset, general market sentiment, economic events, earnings announcements and more.
In the span of a few seconds between deciding which option to trade in and executing the trade, you may not have the capacity to manually factor in all of these important data points. As a result, you may resort to suboptimal options trading strategies that may not deliver the profits you expect. In fact, most traders suffer from these limitations, which is why the rate of losses in this segment is significantly high among retail traders. As a recent study by SEBI revealed, 9 out of 10 individual F&O traders suffer losses — with the average loss size being ₹1.1 lakh!
But what if you did have access to tools that made it easier to track all key market events in one place? Wouldn’t that make it easier to choose optimal and profitable options strategies for different market scenarios? At Samco Securities, we understand this, which is why we’ve integrated all crucial market events into the Samco trading app.
All you need to do is customise your feed to reflect the news for the options and stocks you’re interested in. Wondering why such market events matter? Let’s take a closer look at how they impact your choice of profitable options strategies.
The Significance of Different Market Events for Options Traders
Market events can be expected or unexpected. Some, like regular earnings announcements or RBI interest rate revisions, can be anticipated and planned for. Others, like market crashes, recessions and emergency government policies cannot be predicted accurately. Nevertheless, each of these events affects the market — and consequently, they create options trading opportunities for you.
To leverage such opportunities as and when they arise, you need to curate your trading strategies accordingly. Depending on the event in question, you may have to choose between option strategy for sideways markets or volatile markets, bullish or bearish strategies and even options income strategies.
Let’s explore the significance of different market events for options traders today.
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Economic Events
Economic events like Monetary Policy Committee (MPC) meetings, inflation reports and economic data releases in the US and India play a huge role in shaping market sentiment. When the US economy shows signs of growth or recession, it often impacts the Indian market too.
For options traders, these events can signal opportunities to use profitable options strategies. For example, positive economic news might suggest a bullish options strategy, while negative news could lean towards a bearish stance or an option strategy for a sideways market. Tracking these events may even help you capture opportunities for an options income strategy if you are writing options.
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Earnings Reports
Quarterly earnings reports are critical events for options traders. These reports can lead to significant price movements in the underlying stocks, thereby presenting opportunities for earning improved returns if the market moves as expected. By analysing expected outcomes and market sentiment, you can tailor your options strategy to capitalise on these movements.
Whether a company outperforms or underperforms, there's always a way to find a profitable options strategy. You can either predict market volatility or expect steady prices, which presents the perfect scenario for an options strategy for sideways markets.
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Corporate Actions
Corporate actions such as mergers, acquisitions, stock splits and dividend announcements can also drastically affect a company's stock price. For options traders, these events offer unique opportunities to execute profitable options strategies.
For instance, a merger announcement may lead to a bullish outlook, while a dividend cut might signal bearish times ahead. By staying informed about these events, you can adjust your options income strategy accordingly and ensure that you're always positioned to capitalise on market movements — no matter the direction or the volatility.
While trading holidays might seem uneventful, they can have subtle impacts on market volatility. Before and after holidays, markets can experience increased unpredictability. Some securities may become highly liquid, while others may become illiquid if traders hold on to existing positions with an iron grip.
You can use this to your advantage by adopting strategies that benefit from volatility, such as straddles or strangles. Furthermore, the anticipation of a holiday can affect market sentiment too. So, you may find chances to employ both bullish and bearish options strategies.
Never Miss a Trading Opportunity with Samco’s Updated Events Calendar
Since the opportunities stemming from market events are highly time-sensitive, it can be tricky to take advantage of them as and when they arise. Here’s where the events calendar in the Samco trading app can be a game-changing tool for you. Check out the advantages of the events calendar on the Samco trading platform.
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Compartmentalised Events Segments
Once you complete the Samco account opening procedure and log into the Samco trading app, you’ll find compartmentalised segments for economic events, earnings, corporate actions and holidays. This segmentation makes it easier to track different types of events and prepare for the unique opportunities they may create.
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Unique Tab for Your Events
In addition to the general economic and company-specific events that many platforms offer, Samco’s trading platform goes the extra mile with a section specifically for the events that matter to you. Here, you will be notified about events that are relevant to the securities in your watchlist and the securities in which you hold open positions.
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All Insights Available Free of Cost
Another aspect that sets our events calendar apart from the other similar tools in the market is that we offer this feature free of cost in the Samco trading app and web platform. Elsewhere, these details are typically available only at a premium. But at Samco, we are committed to democratising data access to all the traders in our community.
Beyond Events Tracking: Personalise Your Feed in the Samco Trading App
In addition to the events calendar, you can also find personalised Stocknote Feeds in the Samco trading platform. You can customise the feed based on several parameters, such as:
- Asset class (mutual funds, equity and equity derivatives, currency and currency derivatives, commodities and more)
- Event (shareholder meetings, board meetings, updates, financial results, listings and more)
- Segment (equity, equity derivative, currency derivative, commodity derivative, index and IPO)
- Sentiment (neutral, bullish or bearish)
- Source (Samco, CNN, Moneycontrol, NSE, BSE, Forbes, Livemint and more)
- Media (with or without media sources)
These extensive filters ensure that you can customise your feed in the Samco trading app and remain updated about the latest developments in the market without any delays. These features are available at no extra charge — but only to traders with a Samco demat and trading account. So, even if you already have an account elsewhere, you can complete the Samco account opening process in a few easy steps to access all these features and more — and identify profitable option strategies for any kind of market scenario.
Disclaimer: INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. The asset classes and securities quoted in the film are exemplary and are not recommendatory. SAMCO Securities Limited (Formerly known as Samruddhi Stock Brokers Limited): BSE: 935 | NSE: 12135 | MSEI- 31600 | SEBI Reg. No.: INZ000002535 | AMFI Reg. No. 120121 | Depository Participant: CDSL: IN-DP-CDSL-443-2008 CIN No.: U67120MH2004PLC146183 | SAMCO Commodities Limited (Formerly known as Samruddhi Tradecom India Limited) | MCX- 55190 | SEBI Reg. No.: INZ000013932 Registered Address: Samco Securities Limited, 1004 - A, 10th Floor, Naman Midtown - A Wing, Senapati Bapat Marg, Prabhadevi, Mumbai - 400 013, Maharashtra, India. For any complaints Email - grievances@samco.in Research Analysts -SEBI Reg.No.-INHO0O0005847
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