Axis Bank Options trading Important Tips
Axis bank is one of the premier Private Sector Banks. It is the third largest private sector bank as of this writing. The other two being ICICI Bank and HDFC Bank. It is also part of Bank Nifty as well.
Axis Bank due to its volatile nature attracts interest of options traders. The stock has good options trading volume for almost every day. You do not face any problems in liquidating your positions on OTM strike price options as well.
Below are some important points you need to take are of while preparing trade plan for this bank. Note most of the points listed below are applicable for majority of Financial Instruments like banks in general.
You can use the information in conjugation with Options Open Interest analysis sheet which downloads OI data and based on Calls and Puts creates useful information about Long and Short positions which you can use to prepare for your trade plan in the instrument.
- RBI Policy has impact on banking stocks. It is better to avoid trading in these stocks on days of the event. The price prediction based on the events is tough so better to avoid trades on those days.
- The rupee depreciation that is if value of Rupee falls in comparison with Dollar then that is negative for Financial Stocks like Banks but a positive for export oriented business like IT and Pharma.
- The news related to NPA and other cases in association with banks make the sentiment negative and in turn will have negative impact on prices of the stock.
- The Financial results are one major trigger as well. The NPA data has become very important for result evaluation along with Profit and other details. It is advised not to trade on results days or one two days before this event as stock will have quick movement in either direction.
Options Open Interest Sheet download
Below is the download link for Axis bank options open interest analysis excel sheet for free. The sheet as mentioned before downloads and refreshes the open interest data periodically.
It also creates Long and Short position information based on the Calls and Puts data. You can use this data to plan your trade. I have shared article above which gives you details on how to use Long and Short information to make trades.
In case you are interested in other Top stocks for Options trading then you can refer below link. It has list of all top stocks for options trading and it also has download links for them as well. So you do not have to leave your favorite stock.
You can also download the sheets for Nifty and Bank Nifty as well. These two are most popular and traded Options Instruments of Indian market so better to start trading with them instead of individual stocks.