Hey,
Great Thread. Reading through it.
New-ish to Options in Indian market.
This strategy sounds decent
This seems like an active discussion on the subject so here goes:
I have gone through the small live trade, a few books route.
Just my take away from them:
Credit Spreads:
Better have a strong view with extensive knowledge of possible events/scenarios along with a technical and fundamental analysis background.
Going into this without a strategy with regard to management of position in all imaginable scenarios is too big a risk.
Debit Spreads:
The risk here is limited(in my view), however chances of making money become low/er. Position management is a nightmare.
Final View:
Options are like a friend who can hustle, you never think it will hustle you but a hustler hustles.
If you have a strong case for the underlying movement and know the markets(this is key for all trading) i.e. international news events and local then getting into a position makes sense.
If you don't have an understanding of options:
1- Just play it safe
2- Pay the premium and relax
3- Use them to hedge your portfolio.
4- DON'T EVER SELL A CALL OR PUT OPTION. Leave this for the Pro's.
Advice I give my Dad(market understanding moderate):
If someone makes money from you buying and selling something, DON'T EVER WORK ON THEIR ADVICE.
Cheers
Hope to learn more from the thread.
Great Thread. Reading through it.
New-ish to Options in Indian market.
This strategy sounds decent
This seems like an active discussion on the subject so here goes:
I have gone through the small live trade, a few books route.
Just my take away from them:
Credit Spreads:
Better have a strong view with extensive knowledge of possible events/scenarios along with a technical and fundamental analysis background.
Going into this without a strategy with regard to management of position in all imaginable scenarios is too big a risk.
Debit Spreads:
The risk here is limited(in my view), however chances of making money become low/er. Position management is a nightmare.
Final View:
Options are like a friend who can hustle, you never think it will hustle you but a hustler hustles.
If you have a strong case for the underlying movement and know the markets(this is key for all trading) i.e. international news events and local then getting into a position makes sense.
If you don't have an understanding of options:
1- Just play it safe
2- Pay the premium and relax
3- Use them to hedge your portfolio.
4- DON'T EVER SELL A CALL OR PUT OPTION. Leave this for the Pro's.
Advice I give my Dad(market understanding moderate):
If someone makes money from you buying and selling something, DON'T EVER WORK ON THEIR ADVICE.
Cheers
Hope to learn more from the thread.