What are Options?
Options are a Derivative instrument which is also termed Option Contracts. These contracts have 2 parties,
- An Option Buyer
- An Option Seller
An option contract is a contract between these two parties to buy and sell the underlying security on a specific date (Expiry Date).
What is Options Trading?
Options trading is done by speculators who are also known as traders who buy and sell options with the intention of making a profit and not holding it till the expiry. Options traders don’t intend to exercise the options contract and just benefit from the price movement/volatility of the contract.
How to trade in Option?
To trade in options, one has to have a Demat account through which they can buy & sell these options. After opening a Demat account, one also needs to submit certain documents in order to active the Derivatives segment in their account. Apart from a Demat account an Options trader also uses Option Analyzing tools and Strategy Building tools.
Some Option Analysis Tools are
- Opstra Definedge
- Sensibull
Both of these platforms are unique in their own way. Let’s look at each of them in detail.
1. Opstra Definedge
Opstra Definedge is an Options analytics platform that provides many tools to create and backtest various types of option trading strategies. Some important features of Optra are-
- Options Algorithm- Options algorithm is a tool that finds and provides important options trading opportunities for any underlying security as per your desire.
- Options Simulator & backtesting- Opstra provides an advanced platform for traders to create and backtest their own option trading strategies. This can be implemented on the live market with virtual money.
- Open Interest Analysis- Opstra provides an important Open Interest analysis tool that covers all the important data points that a trader required such as PCR (Put Call Ratio), Open interest charts, IV (Implied Volatility) charts, Max Pain analysis, and many more.
- Options Dashboard- This platform provides a dedicated dashboard for option data where one can get a Bird’s eye view on all the important option data for all the F&O (Futures & Options) contracts available for trading on the NSE (National Stock Exchange).
2. Sensibull
Sensibull is certified to be India’s largest Options Trading platform that offers many features. Some of them are-
- Options Strategy Builder- Sensibull allows users to create, backtest and deploy the option strategies onto live markets.
- Algo Trading- Sensibull provides Algo trading (Strategies Wizard) where one can enter the parameters such as Target, Stop loss, and entry after which the app will execute the orders on its own.
- Expert Trades- Sensibull lets its users copy the trades of some expert SEBI registered traders and earn from their knowledge. This is a unique feature that allows many new traders to learn and earn at the same time.
- Option Analysis tools- Sensibull provides all the necessary tools for options trading such as OI (Open Interest), Option Chain, FII & DII data, Screeners, IV (Implied Volatility) Chart, Event alerts, and much more.
Comparison (Sensibull vs Opstra Definedge)
Both Sensibull and Opstra are good platforms that provide a ton of features to the users but there are some differences in them, lets compare them into 3 main categories which are
- User Interface
- Features
- Pricing-
1. User Interface
Sensibull provides a Simple yet informative User Interface that looks futuristic and advanced, on the other hand, the UI of Opstra is good but looks backdated and old. One might find it difficult to spot few advanced features as the platform is very basic. Hence in the term of UI, Sensibull offers a better package.
2. Features
In the terms of Features both the platform provides more than enough features to their users but Opstra Definedge lacks an important feature which Sensibull provides. It is ALGO trading, Algo trading is the latest trend as more and more retail traders want to trade using algo that makes their work a bit easier. Sensibull also offers the feature of directly trading through their platform and from its mobile app which is a great feature to have. Another added feature in Sensibull is that it provides trading tips or calls from SEBI registered traders that can be beneficial to beginner traders.
Apart from algo trading both of the platforms provide the necessary features such as IV chart, OI analysis, PCR, Options data analysis, Virtual Trading, etc.
So Sensibull can be held the clear winner when it comes to features such as ALGO trading, Trading calls, dedicated Mobile App for trading, etc.
3. Pricing
Pricing plays an important role when it comes to a product. A good product with terrible pricing can make it a worse product for consumers. Let’s check the pricing on both platforms.
Opstra has only 2, price models. One is the FREE Plan and the other is the Paid plan which is for Rs 1300 per month excluding GST of 18%, and if one opts for 6 months then the price is Rs 1000 per month excluding GST.
On the other hand, Sensibull offers a much broader price package of 3 packages in 2 different models.
In the Monthly price model, there are 3 packages, (FREE, Lite & PRO). The Lite package is for Rs 590 per month and the Pro package is for Rs 800 per month.
Sensibull provides some additional discounts if subscribed for 6 months together. The Lite pack costs Rs 480 per month and the Pro Pack costs only Rs 640 per month. The Lite pack provides the basic features but the Pro package provides a trader with every possible tool that is necessary.
To sum up, Opstra and Sensibull are two of the most popular options trading platforms in India. While Sensibull has the most number of rookies and professionals, Opstra has experienced traders on it.
Here are some of the features of Sensibull:
- Options Chain data
- Open Interest Data
- FII DII Data
- Live Options Charts
- Screeners
- Technical Indicators
- IV Charts
Sensibull will also allow you to trade directly through a terminal. It also has a virtual trading platform for beginners to understand trading and making strategies.
Opstra is also not behind. Here is what it offers:
- Pre-designed option strategies
- Custom-build option strategies
Opstra vs. Sensibull
To conclude, it can be said that Sensibull is a clear winner as it offers a Futuristic UI, more features, and better pricing than Opstra. Sensibull clearly is a more “value for money” proposition as it is cheaper than Opstra and is priced at almost half the price of that of Opstra. As more and more retail traders are shifting towards ALGO trading, Sensibull is one of the top choices of traders for Algo trading.
The advance mobile application of Sensibull also lets you connect your broker to the app without and deploy Options strategies on the go. All the mentioned features make Sensibull a better platform than Opstra.