Swing and Intraday Options trading thread

[princy01]

ok , lets start something new something fresh , something different and something fun , i like options trading , more on swing side now and that too option writing , there are options which start at some 300-600 points price in series beginning but go down to worthless in quite a lots of cases , lets begin trading them and make some money , will try and update as and when possible :thumb:

 

[princy01]

7500 PE start point and end point of march series from some 600 rs to 0 rupees , how to play it , how to sell it at start of series and keep all profits at end of series ?

anyone ?

 

[LoneWolf]

Good one Princy, will be reading this thread to learn option. Good Luck..:thumb:

 

[LoneWolf]

7500 PE start point and end point of march series from some 600 rs to 0 rupees , how to play it , how to sell it at start of series and keep all profits at end of series ?

anyone ?

I think value of options are determined from the value of underlying spot.. at the start of march NIFTY was around 7000, 7500 PE was ind eep ITM, Nifty gave a good rally and closed above 7500 on expiry, so 7500 PE expired worthless, lost all its premium.

But through out the month it was not a smooth rally, in the mid of month, there was few sideways days near 7500-7600, few times NF appeared bearish as well.. So in real time holding it from month start to end of the month is challenging.. at end of the month it looks juicy..

Please share your view on this..

 

[princy01]

I think value of options are determined from the value of underlying spot.. at the start of march NIFTY was around 7000, 7500 PE was ind eep ITM, Nifty gave a good rally and closed above 7500 on expiry, so 7500 PE expired worthless, lost all its premium.

But through out the month it was not a smooth rally, in the mid of month, there was few sideways days near 7500-7600, few times NF appeared bearish as well.. So in real time holding it from month start to end of the month is challenging.. at end of the month it looks juicy..

Please share your view on this..

agreed that its a challenge to hold option written till eom , but there definitely an edge also in writing because most option expire worthless , we just have to find out which one does

 

[princy01]

feb 7300 call , start and end denoted in squares

in eclipse it is the point of ideal shorts , i think price action trading is correct way to trade the option writings

 

[bunti_k23]

so ur doing a directional trading with options,if iam not mistaken u will gain whole premium if that expires OTM only....and what if its not ?
whats ur plan then ?

second q,
which charts ru trading is it underlying or options chart itself? and why?

what is ur opinion on buying the options for intraday only ,if one has good intra trading system which can capture swings with average 5 points what will be ur suggestion ?

will be good if u throw some light on these things as iam preparing for such kind of business plan...

thank you ,
have a nice day

 

[rajesh0000]

so ur doing a directional trading with options,if iam not mistaken u will gain whole premium if that expires OTM only....and what if its not ?
whats ur plan then ?

Obviously if an option worth in 100s expires worthless, option on opposite side may appreciate substantially.

So, how to select the one which has max probability of going in favorable direction.

 

[bunti_k23]

Obviously if an option worth in 100s expires worthless, option on opposite side may appreciate substantially.

So, how to select the one which has max probability of going in favorable direction.

im concerned with the risk factor here

 

[princy01]

so ur doing a directional trading with options,if iam not mistaken u will gain whole premium if that expires OTM only....and what if its not ?
whats ur plan then ?

second q,
which charts ru trading is it underlying or options chart itself? and why?

what is ur opinion on buying the options for intraday only ,if one has good intra trading system which can capture swings with average 5 points what will be ur suggestion ?

will be good if u throw some light on these things as iam preparing for such kind of business plan...

thank you ,
have a nice day

First thing is that pick any series and see that there is almost for sure deep in the money option expire worthless, so our focus is on trading positional or swing trading in option and not really intraday, obviously intraday require huge accurate predictions.

Regarding what If it does not expire worthless, then it will hit a stop loss sometime for sure and we are out of position then.

Regarding why trading on option chart? Because we are trading for option to be worthless, how else we can track it on spot or future chart?

No need to make things complicated at all