At Dhan, we’ve been regularly speaking to our users from our early days. Every conversation tells us more about every user’s trading behaviour, preferences, and needs. Do you know what we noticed? A recurring theme - our users prefer Options Trading.
That’s why we wanted to make sure that we at Dhan should work towards providing everything an Options Trader needs to build, analyse, and execute options trading strategies. Over a time, we have built our own ecosystem of Dhan products, features and offerings for Option Traders, just to ensure they get all the products, features and tools that they want, for free. All integrated, seamlessly in the Dhan ecosystem of products.
We came up with Options Trader App, Pledge Benefit for Options Buying, and most recently our very own Options Trader Web with Custom Strategy Builder precisely for that reason and it is good to see that traders are loving it. Like we always say - Dhan gets better everyday! And we already have another cool new feature for our Options Traders - Flash Trader for Option Buyers.
Almost all the traders track market indices, particularly the tradable ones like NIFTY, BANKNIFTY & FINNIFTY. You may form an opinion and view of the movement when you track an index. As Indices are not tradable directly, you replicate your view either in Futures or Options. And as Futures Trading requires relatively higher capital, Options Buying becomes a natural go to trade.
For options, there are numerous contracts with different strike prices. Each one will have a different correlation with their underlying depending on Delta and time decay based on Theta. That’s why it may be a challenging task to identify & choose the correct options contract for replicating the view of the underlying.
This is where Flash Trade on Dhan Mobile App will be a game changer.
This feature is made specially for Options Buyers. Based on your view- Bullish or Bearish, this tool will help you choose the correct options contract to trade. Users will have three criteria to choose from:
- ATM Option
- Highest Open Interest (OI)
- Most Traded
Traders often keep any one among these factors to choose the strike for naked options trading. There is the liberty to choose another strike as well, based on the same criteria.
How to navigate to Flash Trade?
You can find this on the Index page. Simply, search the name of any F&O Indices or Stock options. Click to open the Index / Company page. You can find the “Flash Trade” in the top slider menu and also in the button below the charts/depth.
How to trade with Flash Trade?
Once you open Flash Trade, first you select your view - Bullish or Bearish. If you are Bullish you will get a list of CALL options to buy. If you are Bearish, you will have a list of PUT options to buy. In any case, you will be buying an option. Select the appropriate options contract based on your trading style and instantly place the order.
Whichever trade option you choose, based on the ATM option, Most Traded or Highest Open Interest - you will be able to make quick adjustments based on your selected criteria and instantly place the order.
This feature is made for Options Traders to help them make quick decisions while trading. We hope you like this new feature, do try out and let us know what you think!