Day Trading Stocks & Futures

[sudoku1]

re: Day trading Nifty & Banknifty Futures

APP to videshi dactor nikle:annoyed:

n paidaishi 2 !:-D

 

[arcus]

re: Day trading Nifty & Banknifty Futures

That spike can cause problems even with buying options, right ?

Anyway, today was just a test case. I guess that when one has determined the possible direction of the index, then on rangebound days like today, it was better to sell a call than buy a put.

I guess I will be scalping till I am more confident.

Deep in the money european puts do not undergo time decay. They tend to have negative time value. They increase in value as time passes.

 

[AFORASTRO]

re: Day trading Nifty & Banknifty Futures

i think for day trading ATM CALL or PUT trading will give same result as future but with less capital.

 

[arcus]

re: Day trading Nifty & Banknifty Futures

i think for day trading ATM CALL or PUT trading will give same result as future but with less capital.

Nope, the delta would be 0.5, they so will give half of the value if IV were to remain the same.

But taking into consideration time decay, they will give less than half the value of futures.

If IV were to also fall, then it would give much less than 0.5

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

i think for day trading ATM CALL or PUT trading will give same result as future but with less capital.

No ,ATM call/put will have a delta of 0.5 where as Futures have a delta of 1...so a 5 points move in futures will give 2.5 points in ATM options. So you have to go for double quantity ...so double margin...

Smart_trade

 

[AFORASTRO]

re: Day trading Nifty & Banknifty Futures

i feel like prickng dat black poped eye wid a screw driver !

 

[TradeJoker]

re: Day trading Nifty & Banknifty Futures

i think for day trading ATM CALL or PUT trading will give same result as future but with less capital.

futures = man

options = women.... u cant easily understand d behavior,

ST sir is Sri.Krishna

 

[arcus]

re: Day trading Nifty & Banknifty Futures

futures = man

options = women.... u cant easily understand d behavior,

In Futures we have to take into consider Backwardation and Contango which is the discount/premium to the spot price respectively.

We are actually paying quite a premium for the Nifty futures. While the spot is currently around 6315, the futures is 6370. That 55 points premium will have to undergo time decay.

 

[munde_77]

re: Day trading Nifty & Banknifty Futures

No ,ATM call/put will have a delta of 0.5 where as Futures have a delta of 1...so a 5 points move in futures will give 2.5 points in ATM options. So you have to go for double quantity ...so double margin...

Smart_trade

ST Sirji . Have you read the post no 15145. If not please do read

 

[Smart_trade]

re: Day trading Nifty & Banknifty Futures

futures = man

options = women.... u cant easily understand d behavior,

ST sir is Sri.Krishna

Yeh Sri Krishna kyun bana diya bhai ?

ST