- Revolutionizing Options Trading to help retailers trade like professionals
- 97.8% of traders venturing into options without hedging strategies ended up losing money, finds SAMCO Securities research
MUMBAI: SAMCO Securities, a leading investment-tech company, introduces Options B.R.O., a groundbreaking solution designed to empower traders where they can build their strategies, analyze & optimize them basis their requirements, leading to calculated decision-making. This innovative offering addresses a concerning trend observed in derivative markets, where an overwhelming 97.8% of traders have incurred significant losses due to the absence of hedging strategies.
SAMCO known for building industry-first features, continues its legacy by providing insights for strategic decision-making, enabling traders to consistently outperform the markets. Options B.R.O. empowers option traders with a comprehensive tool to craft personalized strategies from over 1000+ strategy combinations, analyze humanly impossible complex data effortlessly and optimize based on individual needs. With Options B.R.O., traders can make calculative decisions, enhancing their options trading experience.
Options B.R.O. brings manifold benefits, allowing traders to focus solely on identifying stocks and their respective trends. Free from the complexities of calculating intricate option metrics such as probability, delta, and theta, traders can seamlessly evaluate each trade before execution. Additionally, SAMCO provides comprehensive strategy details, enabling traders to make holistic assessments and informed decisions, further enhancing their trading experience.
The nomenclature “Options B.R.O.– Build, Research, Optimize” encapsulates the core functionalities and objectives of the platform, aligning with its mission to empower traders with comprehensive tools for informed decision-making and strategic optimization.
- Build: The term ‘Build’ signifies the platform’s capability to enable customers to construct their own tailored strategies.
- Research: The inclusion of ‘Research’ highlights the platform’s commitment to facilitating thorough analysis and exploration of trading strategies.
- Optimize: ‘Optimize’ underscores the platform’s emphasis on maximizing efficiency and effectiveness in trading activities.
Traders can delve into comprehensive data points, including Option Greeks, Implied Volatility (IV), Expected Value, etc. to inform their decisions. With a plethora of strategies catering to every risk appetite, traders can explore numerous combinations and filter options based on available funds or maximum acceptable loss per trade. The tool simplifies options trading by harnessing data-driven insights to generate bespoke strategies aligned with traders’ preferences.
Jimeet Modi, Founder, of SAMCO Group, commented, “Options B.R.O. represents a significant advancement in our commitment to providing traders with the tools necessary for precise market navigation. The prevalence of losses emphasizes the importance of a solution like Options B.R.O., allowing traders to take calculated risks by analyzing complex data points. We are confident that Options B.R.O. enables traders to approach options trading with strategic foresight.”
Key Findings from the SAMCO research:
- Hedging Strategies:
- A mere 2.2% of traders utilized hedging strategies, while the majority (97.8%) traded options without protection.
- Traders employing hedging strategies averaged a profit of INR 196,300, whereas those without incurred losses averaged INR 66,768.
- Type of Option Traded:
- Traders who exclusively bought options (long call and long put) experienced average losses.
- Conversely, option sellers, on average, recorded profits, underscoring the importance of understanding option Greeks and implied volatility.
- Strike Rate Analysis:
- Traders exhibited a higher strike rate in futures trading compared to long options.
- Despite often predicting market direction correctly, traders frequently lost money in long options due to a limited understanding of option Greeks and implied volatility.
Pratik Adani, CTO, of SAMCO Securities, commented, “Options B.R.O. directly addresses the foremost challenges in the current options trading scene, equipping users with the critical insights needed for informed decision-making. We innovated at the technological forefront to break through the barriers of executing complex mathematical and computational analyses in moments, facilitating almost instantaneous decision-making for our users. This capability to perform over 1.5 lakh mathematical computations, evaluate more than 2000 option contracts, and analyze over 1000 strategies in just one second is transforming options trading. The extraordinary speed and accuracy of Options B.R.O. enhance traders’ ability to act swiftly using the SAMCO trading app.”
Key Features of Options B.R.O.
The feature not only filters strategies based on the user’s perspective but also enables users to analyze their strategies across various parameters. To enhance users’ strategy analysis experience, it provides the capability to analyze all the following data points, facilitating the determination of the optimal option strategy.
- IV
- Option Greeks such as delta, theta, gamma, vega
- Upcoming events
- Technical indicators
- Expected Value
- Risk Reward
- Return on Investment
