SBI Options trading Important Tips
State Bank of India is the largest bank of India. Most of the Indian have account in this bank. It is public sector bank and is part of Nifty as well as Bank Nifty.
The huge network of branches and well known brand makes it popular company.Most of us know it. In fact I have few friends who after opening Demat account searched for it and bought shares of it.
Banking stocks are always favorite of Traders. State Bank of India is leader of the pack so the options volume on this counter is very good and next only after Reliance.
Below are some important tips you should follow if you want to do options trading in State bank of India. Note these tips you should club together with the information presented by the Excel sheet to create your trading plan.
- The RBI policies have impact on banking stocks and this is no exception. The behavior of stock is unpredictable on policy days so better avoid trading it on those days.
- Rupee depreciation against dollar is negative for Banking stocks and State bank of India as well. If Rupee falls then banking stocks will take a dive.
- The NPA resolution related news and Government boost to Publi sector banks is huge news and is considered as positive push to these stocks. The stocks will react positively on these news.
- Like all stocks Results days are pretty much unpredictable so better to avoid trading those days. You should watch out for NPA component in results if you want to trade on result days.
- Except on event days stock does not show very large movements to try not to trade in too far OTM. Problem is near OTM are costly affair. So you should take a call intelligently.
Options Open Interest Sheet download
Below is download link for State Bank of India options open interest analysis excel sheet. The sheet downloads and refreshes options open interest data and creates Long and Short position information based on Call and Put data.
In case you want to trade in Options of other popular stocks like Reliance or Tata Motors then you can also download excel sheets for them as well. Below article provides options OI excel sheet for all top stocks for options trading.
Some people do not prefer to trade Options in stocks for them I have prepared OI sheets for Nifty and bank nifty. You can also download them for free using below links.
I have also provided useful tips to trade in Nifty as well as Bank nifty which you can use in your trade plan as well.