Database Trading

Introduction to Database Option Trading
Database Option Trading is an advanced strategy where traders use massive historical and real-time market data stored in structured databases to identify profitable option trades. Unlike conventional trading, this approach focuses on data-driven decision-making—leveraging algorithms, statistics, and pattern recognition rather than pure technical/fundamental analysis.

2. The Role of Data in Option Trading

Types of Data Used:
Option Chain Data: Strike prices, premiums, LTP, OI, IV, volume.

Historical Data: Past price action, volatility, Greeks, PCR.

Sentiment Data: FII/DII positions, news sentiment.

Real-Time Market Feeds: Tick-by-tick updates.

Macroeconomic Data: Interest rates, inflation, events.