Day Trading Stocks & Futures

[mohan.sic]

Sold 30900 CE and 30700 PE at 47 appx. combined premium 95
qty: 1 lot each.

mohan.sic said:
Booked profit in 30900 CE @ 26 and Shorted 30800 CE @ 54
Added another short 30800 CE@ 53

Booked profit in 30800 1 lot @35 and Shorted 30700 ce @ 75

Did not short anymore options and I covered above CE short in Loss.
Got completely engaged in scalping ( buy side) and could not update anything later. Overall its a good day.

 

[kharikumaar]

earlier in my trading days i used to buy low priced out of the money options thinking when they go up ill make good returns. subsequently realised the foolishness when the time decay battered the prices. slowly i started to coming closer and closer to the underlying price. i still do not buy ATM options but the ones near to it because when the movement is violent you do get a slightly better returns on those than the ITM or ATM options give.

this is what i have seen. i am not very well educated on the greeeks iv etc. but its not difficult to understand the behaviour of the options. i also think that too much of knowledge into all these will only hamper your ability to take decisions fast.


""" disclaimers as required apply

 

[travi]

hehe, you have over-simplified the subject for everyone

I think options behave like futures only.

if you buy futures next month expiry is dearer than this month expiry.
Similarly next month ITM calls would be more expensive than this month

If you sell futures next month expiry gives more premium to us and hence is more beneficial. Similarly next month itm puts should be cheaper than this month ITm puts

provided we assume next month has more premium than this month.

 

[Riskyman]

this is what i have seen. i am not very well educated on the greeeks iv etc. but its not difficult to understand the behaviour of the options. i also think that too much of knowledge into all these will only hamper your ability to take decisions fast.
""" disclaimers as required apply

Buying options mein sab chalta hai as your risk is limited to the premium you pay.
Writing options is far more dicey. I cannot over emphasize the importance of knowledge. No knowledge of greeks and their behavior means no ability to deploy any strategies. Just my thoughts!!

 

[lemondew]

Yes early on I spent a lot of time watching option chains this month / next month so to see if there is any strategy for profit . Early days for me I realised the chains are perfect in that they are balanced and tied to that months futures.

You can buy august ITM puts cheap /sell same strike calls and buy Julys futures. To gain a small premium advantage Downside upside protected.

That amounts to same sell august future and buy july future. Only that you spend sometime understanding the chain.

When there is some anomaly due to price shocks then there is oportunity for arbitrageurs and algos can do well to track these anomalies

hehe, you have over-simplified the subject for everyone

 

[mohan.sic]

this is what i have seen. i am not very well educated on the greeeks iv etc. but its not difficult to understand the behaviour of the options. i also think that too much of knowledge into all these will only hamper your ability to take decisions fast.


""" disclaimers as required apply

That was nice. And there is no need to experiment on greeks beyond a point. ( for our kind of trading)
It is enough If we have the basic knowledge that iv's will be high before a event due to expected volatility and they shrink back to normal levels after the event. So we can avoid buying when they are over priced.

 

[travi]

Right. i've posted many times but no offense to anyone.

IF you are using options to trade a direction, then why use option that has lesser Delta and Theta problem for the buyer.
It is always better to take a Futures position.
Now, one may argue that with an ATM option, you have half delta and therefore double the Stoploss size, but who is trading 1qty of option ?

Where you are forced with 1 qty, it is understandable, you will buy a 0.3 Delta strike and lay back.

intraday margin wise, it may require more but its not that much like a gambler who comes with all or nothing mentality.
And if you compare margin Delta wise, then its almost the same. Don't specifically count only expiry day but in general with atleast 3-4 days to expiry.

Buying options mein sab chalta hai as your risk is limited to the premium you pay.
Writing options is far more dicey. I cannot over emphasize the importance of knowledge. No knowledge of greeks and their behavior means no ability to deploy any strategies. Just my thoughts!!

 

[sanju005ind]

That was nice. And there is no need to experiment on greeks beyond a point. ( for our kind of trading)
It is enough If we have the basic knowledge that iv's will be high before a event due to expected volatility and they shrink back to normal levels after the event. So we can avoid buying when they are over priced.

Yes beginners try to be clever and buy both call and puts before the event and realize that neither made money even though there was directional movement. Attaching a copy of the election result day option chain of Nifty.

 

[sumosanammain]

This is perhaps the only website which helps connect with fellow traders effectively and get to know each other to some extent.

Very few people are interested in meeting up for purposes related to System Development. But, if you say, that there is a tips network I can introduce you to, a lot of people will turn up

 

[sanju005ind]

Very few people are interested in meeting up for purposes related to System Development. But, if you say, that there is a tips network I can introduce you to, a lot of people will turn up

Last time only you and me were ready.No responses from anyone.Hence we dropped the idea.