Day Trading Stocks & Futures

mohan.sic

Well-Known Member
need help with stock option price calculation.

I have identified a short trade in heromotoco in cash @ 2943 with an sl @ 2958. now the nearby put option is 2950 which I want to buy when the price reaches 2943 in cash. now I place pending orders for my trades.

here is my problem, how should i find in advance the price of PE2950 when it reaches 2943 cash? is there any calculation or something? please help.

Simply no. Such calculation experiments we can do for study purpose, but real time. for trading it wont work.
Sentiment plays a vital role in option pricing which we cannot calculate on calculators. It cannot be on done even on highly liquid index options, so please forget about stock options, where a single market order can make the stock option price move erratic ( of course they adjust back quickly as algos exploit the opportunity)
 

Romeo1998

Well-Known Member
Simply no. Such calculation experiments we can do for study purpose, but real time. for trading it wont work.
Sentiment plays a vital role in option pricing which we cannot calculate on calculators. It cannot be on done even on highly liquid index options, so please forget about stock options, where a single market order can make the stock option price move erratic ( of course they adjust back quickly as algos exploit the opportunity)
yes i also completely agree, expecially on expiry days, sometimes price is theoretically impossible.... for example... if bnf is at 30500, so 30000CE intrinsic value is 500 + timevalue + implied volatility .... so its price has to be more than 500, but many times it is value at 450 , 430 n sometimes even less than 400.... how is that even possible :DD:DD:DD
 

Romeo1998

Well-Known Member
Romeo Bhai,
Always saying, Thinking, writing positive Good for health .
Why giving heartache.
Bhai hum bhi katora le ke khade hai. Banknifty ke pyar me diwane hogaye hai. Is li liye hoosh kho baithe hai. Abhi bhi long hoon. :p
Sir bnf abhi slow slow channel me jaa raha he, sometimes it falls from 38.2 % retracement n sometimes it doesnt :pompus:
abhi 23 % se bounce kiya he, i expect it to go up from here :pompus:
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