Mere pyare buddies mujhe maaf karna itni raat ko bhi post pe post chaapi jaa raha hun par gyan baatein bina chain nahi pad rahi
Toh carrying fwd option writing some more tips:
One shud only Write Index(Nifty) options bcoz:
->Index moves are not as bizare as individual stocks. Index is usually composed of many blue chips or A-grade stocks. So one stock usually cannot determine the direction of index(unless obviously it dives 90% types
)
Examples:
13/4/12 : INFY off 13%, but Nifty off only 1.3%
22/2/12 : SBI off 8% , but Nifty off 1.8%
24/4/12 : TCS gains 13% , Nifty gains .4%
18/1/12 : RIL gains 5% but Nifty is off .23%
So this shows how smooth r the index movements
-> Plus there is Excellent liquidity in Index options which is another very crucial aspect both while writing the options and while squaring them off
.............. Gud nite ............