Today's Planting = Tomorrow's fruits. Educating Team is like Planting Trees. It will gives you fruits of boosting your business in Boom Period

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3 Today's Planting = Tomorrow's fruits Educating Team is like Planting Trees. It will gives you fruits of boosting your business in Boom Period 3

4 Education is Insurance for bearish period Education insures your future against bearish time in the market. It will help you to stand in market when others are facing troubles. 4

5 Knowledge of team increases customer's faith Customer has always put their faith on people who have given better guidance Better guidance comes from better knowledge. Hence we should train our team to face any situation of the market. 5

6 Accept the change and lead the market for years to come People who don t accept the changes, normally phase out in new era. Hence list of top 10 brokers changes every 10 years. Amitabh Bachchan is leading in film industry from past many years because he has accepted the changes in his roles. 6

7 What are the Broker s Objective Client Satisfaction Run a Scalable Business Model Consistent Revenue Month on Month In-depth Knowledge for Perfect Advisory Optimum Utilization of Clients Fund and Stocks 7

8 What is your Dealers' psychology? Normally dealer trades or advise in the market/scrip where he is having good command. 8

9 9

10 Risk Scenario 10

11 Different type of views attract clients Bullish Bearish Volatile Range bound Slightly Bullish or Bearish Heavily Bullish or Bearish 11

12 Different Strategies attract Clients Bull Call Spread / Bear Put Spread Straddle / Strangle / Strip / Strap Butterfly / Condor Price Ratio / Delta Ratio / Theta Ratio Short Gamma / Long Gamma Low Delta short Vega Book Building Volatility Spread Expiry Day strategy Long Term Options Strategy Synthetic Options Strategy 12

13 Investors Risk Return Profile Investors are also safe when they trade in Options They can choose limited loss or low risk strategies suitable to their risk profile Options are the best tools to earn Time Value 13

14 More Traders are Moving to the Options Margins are shrinking in Cash to Future and Future to Future Segment And more players are shifting to Options trading Hence the scope is larger for informed participants 14

15 Market Share in last 12 Years Year Future Market Share Options Market Share % 29% % 24% % 13% % 11% % 12% % 14% % 15% % 34% % 52% % 66% % 75% % 77% Here you can see that Options market share has grown drastically in last five years. 15

16 Market Volume Equity Vs. Derivatives Month Equity Market Turnover (Rs. In Cr.) Derivatives Market Turnover (Rs. In Cr.) January ,95,415 29,50,975 December ,40,325 26,40,392 Source: 16

17 Market Volume Equity Vs. Options Day Equity Market Turnover (Rs. In Cr.) Option Market Turnover (Rs. In Cr.) 31 st January ,028 1,69,027 Source: 17

18 Market Volume Who will get more fishes? A person fishing at Lake? Or a person fishing at Ocean? 18

19 The Bigger Cake.. The Bigger Bite Where is more opportunity of earning? In lake or in sea? In 2,00,000 Cr. Market or in 27,00,000 Cr. Market? Which cake s bite is bigger? 19

20 Research and Options Products Only 1% or 2% of your clients are trading as per member s research but because of this research, equity traders are getting attracted to that member Same as.. If we have various option strategies then all the option traders will be attracted to us. And automatically we will be in the market with daily volume of Rs. 60,000 Cr The Bigger Cake The Ocean 20

21 Please Note In this dull market scenario Options Volume are generated only by Arbitrageurs and FII's mostly as DII's are restricted. 21

22 What FIIs needs? FIIs also needs the smart people in derivatives market If you have Options strategies then you can also attract the FIIs to work with you. 22

23 The New Era of Options Every Bull Market Brings new things to market Next Bull Market will be very much dedicated to Options Options are going to get introduced in Commodity section too very soon NSE will introduce VIX Future and VIX Options very soon Again Knowledge about this section will be required Brokers with advanced knowledge will be winner in next bull market 23

24 The Next Generations of Options Currently, We are trading in plain vanilla options The Next Generations are binary options or barrier options So, first we have to understand plain vanilla options in depth Then only we can move forward 24

25 Do you know how price of an Option changes??? Spot Changes Rate of Interest Changes Option Price Changes Strike Changes Volatility Changes Time to Maturity Changes It requires knowledge of Option Greeks to evaluate the impact on Option Price 25

26 26

27 Actually Risk is only for 127 shares. Position is only 127 shares Long. 27

28 Option Greeks are like a Thermometer It shows degree of risk in your portfolio 28

29 Option Greeks measures the risk of Option Portfolio Vega Delta Theta Gamma Rho 29

30 A trader, who knows Option Greeks can identify the Opportunity in Option Markets very easily 30

31 Volatility Option Price changes due to change in Spot or Change in Volatility or both We should be in a position to judge the Spot Price impact of change in Spot or Vol 31

32 Option behaviour is completely different at starting of month, middle of month and end of month 32

33 Option behaviour is completely different for ATM, OTM and ITM 33

34 Boom 34

35 How do we serve you in knowing Options? Provide you Basic and Advanced Option Greeks Knowledge Standard and FinIdeas Strategies Practical Orientation of Option Course Question Bank Simple Language to Learn Complex Option Discussion on Present Trading Methodology FinIdeas Options Tool-kit 35

36 How FinIdeas helps you? We will train your team in Option Greeks We will give them revisionary webinar batches so that people will be live after training also Trading platform that should also be equipped with all the strategies / Greeks / Option chain etc. Complex Options. Simple Solutions. 36

37 Complex Options. Simple Solutions. 37

38 About FinIdeas FinIdeas was founded with a goal to educate people in the field of Equity & Derivative markets and provide them software which would give them an edge in trading. We achieve this by focusing on constant enhancement of our knowledge base and technological edge. We are a team of young and committed individuals having diverse educational and experience. We are committed to an ambitious and forward-thinking culture and are always on a look out for the next big opportunity. 38

39 About us Team working together since 2008 Team of Individuals having diverse Education and Experience We deliver world class software and quality education to Stock Markets traders and investors. Focused on constant enhancement of knowledge and technology base. Ambitious and forward thinking culture. 39

40 Vision Software Segment We intend to equip the Industry with the best real-time softwares to analyse and trade in the stock markets. Our vision is to develop software befitting the requirements of all types of market participants like speculators, arbitrageurs, hedgers and investors. Education Segment We intend to become the most preferred training Institute in the field of Equity & Derivative markets with a focus towards practical sessions in simulated market environment using innovative technologies. Our goal is to make people aware of risk and return prevailing in different segments and ways to manage it effectively. 40

41 Mission We intend To become a benchmark product and service provider for Equity & Derivative markets in India To Identify Industry's trading needs, problems and provide solution related to it. Each of our leaders brings in diversified experience from various fields of the above segments. Our infrastructure and processes coupled with our sincerity and passion is what makes us confident of achieving our goals and making our vision a reality. 41

42 Why FinIdeas? Experienced Founders Innovative Research Options Expertise Education Edge Dedicated Development Team Online Support One Stop Solution 42

43 Our Software Solutions VolHedge Online Options Greeks Management Tool FinExcel Export to Excel FinGraph Think it, Plot it FinTester Test your Strategies EasyRMS Manage Risk, the Easier way FIST FinIdeas System Trader FinSimulator FinMarketwatch FinBroadcaster 43

44 Our Certified Webinar Courses Basic Options Trader Enables you to understand the Options in Depth Greek Options Trader Vol Spread Trader Derivatives Market (for CA Students) Derivatives Market (for MBA Students) Proffessional Excellence in Excel Enables you to understand the Options Volatility and Options Greeks in Depth Enables you to understand the 2nd Line Greeks and Volatility Spread Strategy in depth with Practical Session Enables Professionals to understand the Conceptual and Practical knowledge of Derivatives Market Enables Students to understand the practical depth of Indian Derivatives Market Learn Microsoft Excel's Advanced Formulas and Macro with Pivot Tables at your Door Steps. 44

45 Our Certified Corporate Courses Corporate Training - Retail Desk Advanced Option Greeks for Retail Broking Desk Corporate Training - Arbitrage Desk Advanced Option Greeks for Arbitrage Desk Proffessional Excellence in Excel Learn MS Excel Advanced Formulas and Macro with Pivot Tables 45

46 46

47 What are Derivatives? What are Options? What is Call Option? What is Put Option? Type of Options ITM ATM OTM Formula of Synthetic Synthetic Future Synthetic Call Synthetic Put Strategies Bullish & Bearish Straddle & Strangle Strip & Strap Strategies Ratio & Calendar Spread Condor & Butterfly Put Call Parity Open Interest Other Theories Blunders in Derivatives Market 47

48 Option Pricing Option Greeks Delta Gamma Vega Theta Rho Significance of Volatility Volatility Vol Smile & Skew Greek Based Strategies Delta Long Short Vega Long Short Theta Long Short Greek Based Strategies Price Ratio Spread Delta Ratio Spread Theta / Vega Ratio Spread Greek Based Strategies Short Gamma & Tik Tak Book Building Low Delta and Short Gamma Dispersion Theory Other Theories Volatility Sigma Range 48

49 Overview of Options Greeks Volga 2 nd Line Option Greeks Vanna Volatility Spread Strategy Vol Spread Chain Front Spread Back Spread Vol Spread Hedging Hedging Impact of Open Interest Strategy Testing in Simulated Environment Intraday Vol Graph Past Vol Behavior Greek Effect Risk Management System Fund Management Trading Cost Management Importance of Hedging through OTM Options 49

50 Overview of Indian Financial System Capital Markets / Securities Market Stock Market & its Operations Settlement and Settlement Cycles Clearing Houses Green Shoe Option 100% Book Building Process E-IPO Capital Market Instruments Commodity Derivatives & its Conditions The Indian Scenario Investment in Commodity Derivatives Commodity Market Commodity Futures Commodity Swaps Hedging With Commodity Derivatives Introduction to OTC Derivatives OTC Interest Rate Derivatives Forward Rate Agreements Interest Rate Swaps Swaptions Interest Rate Caps Interest Rate Collars The Indian Scenario 50

51 What are uses of Excel? How can be excel use ad data managment? Inserting Data Filtering and sorting Data Useful Functions Maths Functions Logical Functions Lookup Functions Charts Record Macros Web Query Analysis Tools Macro Other Uses Pivot Tables Creating and Editing Macros Google Doc 51

52 Benefits from FinIdeas Courses Application of Options Knowledge to Stock Options, Currency Options & Commodity Options FinIdeas Study Material FinIdeas Option Calculator FinIdeas Option Excel Sheet FinIdeas Greek Option Excel Sheet FinIdeas Live OI/PCR Sheet Virtual Class for solving Auto Generated Questions Course Certification Free software usage for One Month on completion of Training 52

53 Our Esteemed Clients Continue. 53

54 Our Esteemed Clients and many more 54

55 Mr. Dharmesh: Mr. Shailesh: Web site:

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