dont buy out the money options

[tomdickharry]

as some analysts r recomonding dont buy out the money calls and puts. u will lose
money both sides insteady sell them. there is every chance that the market remains range bound.

 

[fire_gun]

i dont agree... technicals says over 14100 we may see some more upside and over4200 we may see sum good upside as it will cross doji on daily charts..and if goverment falls then we may move to 4000 in nifty at least..so buying one call and one put as a strangle with next seriesof august is worth to take positions..

 

[praveen taneja]

i dont agree... technicals says over 14100 we may see some more upside and over4200 we may see sum good upside as it will cross doji on daily charts..and if goverment falls then we may move to 4000 in nifty at least..so buying one call and one put as a strangle with next seriesof august is worth to take positions..

sir i buy always strangle options but never get out of them correctly is there any good method to book it like i hav bought today 4200 put n 4600 call at 4400 nifty so wat should b my strategy to exit these are of aug so i hav plenty of time

 

[fire_gun]

it is good.. hold it .....

 

[Czar]

as some analysts r recomonding dont buy out the money calls and puts. u will lose
money both sides insteady sell them. there is every chance that the market remains range bound.

To all not having good experience in options, please don't sell options, only buy them, in or out of money is your option, but avoid selling them as you will land up with limited profits & unlimited losses if markets go against you...

If you prefer buying cheap out of money then make sure enuf time is their for expiry or then go for near month, otherwise they will be worthless...

 

[krishna23]

there are no hard rules, depending on the nature of market different options strategies can be used...
and i agree that option writing can land u into serious trouble if u don't understand ur obligations...

 

[tomdickharry]

Better exit both positions soon. because nifry will be range bound and most probabley within 4200 to 4600. You will lose bothsides if it closes any where in this range u can observe a significant cut in the premium already.

sir i buy always strangle options but never get out of them correctly is there any good method to book it like i hav bought today 4200 put n 4600 call at 4400 nifty so wat should b my strategy to exit these are of aug so i hav plenty of time

 

[fire_gun]

Better exit both positions soon. because nifry will be range bound and most probabley within 4200 to 4600. You will lose bothsides if it closes any where in this range u can observe a significant cut in the premium already.

i dont agree.......... nifty will break 4600 upside soon if global markets remains postive and 4200 will be broken if any negative news comes in...he ebtered around 4400..so he need nifty 4600-50 on upper side to be handsum profit and on downside he need around 4150...

 

[Czar]

ya fire_gun but just 4 sessions left... odds may not favour...

 

[fire_gun]

ya fire_gun but just 4 sessions left... odds may not favour...

iam talking about august series...