diary of a day trader

[deadbrain]

So you mean that in case i know nifty will go up by definitely 20 points it is more profitable to buy the call rather than futures especially after margin (or the lack of it in options) and brokerage (less comparatively for options compared to futures) is considered.

The only plus point in options which I have felt is they are cheaper. My brokerage firm charges 27-28K for nifty. Though for call/put options, you do not have to put that much money at stake (only if you are buying them), you can buy them at the trading price.

 

[TraderRavi]

So you mean that in case i know nifty will go up by definitely 20 points it is more profitable to buy the call rather than futures especially after margin (or the lack of it in options) and brokerage (less comparatively for options compared to futures) is considered.

YA SURE,...see 20 points with one lot future gets you 1000 rs.....with same amount of capital around 30 K..6 LOT @ 100 PREMIUM CALL option will fetch you about 5 - 6 point increase ----6 x 50 x 6 = 1800 Rs....so almost double or may be more profit....but if you have puts then you may loose same or more...so you win more loose more...thats why I say direction must be right...

 

[prst]

options are profitable only if there is a lot of volatiltiy in the particular stock or nifty.
if you expect the stock to move up/down very rapidly, within 1 or 2 day, only then go for options.
options seem to be an easy and lucrative option, but they are equally risky.
if u hold it for a week or so, and the price does not move as per ur expectation,, yoo are in for a losss.

regds
prashanth

 

[alroyraj]

options are profitable only if there is a lot of volatiltiy in the particular stock or nifty.
if you expect the stock to move up/down very rapidly, within 1 or 2 day, only then go for options.
options seem to be an easy and lucrative option, but they are equally risky.
if u hold it for a week or so, and the price does not move as per ur expectation,, yoo are in for a losss.

regds
prashanth

Exactly but I was referring to strictly intraday or max 3 days time. So trading in options does seem capital efficient but futures are more liquid (as far as I know).
Also because of put premium decay in an uptrend ,having hedged positions like buying puts and calls suggested by ghosh seems low risk and low return.

 

[alroyraj]

YA SURE,...see 20 points with one lot future gets you 1000 rs.....with same amount of capital around 30 K..6 LOT @ 100 PREMIUM CALL option will fetch you about 5 - 6 point increase ----6 x 50 x 6 = 1800 Rs....so almost double or may be more profit....but if you have puts then you may loose same or more...so you win more loose more...thats why I say direction must be right...

But if you have the highest brokerage of 100 per lot its not worth it isnt it? So the risk becomes a lot higher not that futures becomes any more lucrative is some 7-8 points

 

[TraderRavi]

But if you have the highest brokerage of 100 per lot its not worth it isnt it? So the risk becomes a lot higher not that futures becomes any more lucrative is some 7-8 points

see intraday..derivatives are profitable only with brokerage like RK Global...with only 29 Rs per lot @ 100 premium even 1 point will bring money...but if you have big moves then brokerage does not matter...

 

[prst]

that means u stopped day trading is it
i mean stopped making losses ?

jus kidding.. lol

 

[Sunny1]

what happened dude suddenly closing thread?

 

[prst]

Never believe these broker reports.

when the market goes up, they will say it will head to 25k.
next day when it comes down, they'll say it will go to 12k .

 

[gangadharan]

Never believe these broker reports.

when the market goes up, they will say it will head to 25k.
next day when it comes down, they'll say it will go to 12k .

STOP LISTINING

BEST OF LUCK.

gangadharan