Crude Brent LCOc1 Volatility Momentum Values

Below Volatility and Momentum Values for Crude Brent for Reference.

LCOc1's lower time frame Volatility Values are bit skewed as evident, lets see if this holds.

Crude Brent, after being unable to hold towards its highs has started correcting, there are numerous ways to look at these prices and one way is to

a. Stay away safely,

b. Tackle through Futures,

c. Tackle through the Options,

Options market, when utilized for its intended purpose, can significantly benefit businesses. Options will effectively enhance your position holding capacity, potentially yielding superior returns compared to concentrated risky bets, as long as your market outlook proves okay. If your analysis proves incorrect, losses are limited, presenting you the opportunity to calmly reassess and strategize for subsequent trades. And guess what, if you have right talent pool these risks might be treated as well as Prices unfolds.

Review below trade and you might punch in your numbers and this might help you enormously when you believe prices are overbought and MIGHT correct lower. If it does you surely make money, if your view is wrong you lose in a controlled manner.

E,g, If you deploy a strategy like this your risks and rewards both are limited. (This strategy was dated 08.07.2024 (For demonstration purpose )

a. Sell CE choose a strike around CMP,

b. Sell CE (At least 1 strike higher than a),

c. Buy CE (At least 1 strike higher than b),

d. Buy CE (Strike same as C).

Here Risk would be about 2 times of reward, but if your volatility values are skewed, you have Bearish Divergences in place and you have positive reversals being broken. These are safe.

Consider reviewing the following trade scenario and analyzing its potential impact on your financial strategy. This approach could prove highly advantageous when you perceive that prices are potentially overextended and may correct downwards (not basis hunch and experience).

If your analysis proves correct, it can lead to profitable outcomes. Conversely, if your assessment is incorrect, any losses incurred are limited and manageable. This method allows for a disciplined approach to trading, enabling you to calmly reassess and plan future strategies accordingly.

Lets connect to explore it together .

Sincerely

Primant Kumar

1. Above information is only for Educational Purposes only, These are not a trade recommendation,