Re: What is the edge you have in the markets?
There are so many mindless buy, sell recommendations there now. Thats what most people want. In my thread also many people asked such questions. My answers are repetitive and hence useless - How the hell do I know why you have bought it and at what level you should sell. Very few people are interested in hearing that.
Most people dont realize that if you trade options properly, you will RARELY have losses. But to sustain with the level of profit, you have to have a big account to do 10 to 100 contracts.
Moreover I'll have to see if there is anything worthwhile to contribute on my part. No point in reading a ratio strategy from the book and putting it there. Anyway if you or Asishda have specific questions, I can answer them.
BAV
Well Avi sir, to begin with i'll put two questions for you - one specific & one more general
1st the specific one:-
How do i determine what the SL for an option would be BASED ON THE SPOT/FUTURE PRICES. (As of now i just fix a level in Spot/Future below or above which i'll get out, but is there any way of determining what the corresponding option price is likely to be at these levels?)
& the general one:-
What if someone wants to start of with a relatively small capital (say 2 lakhs) & wants to limit his trades to BUYING Puts & Calls - is there any simple strategy for him to follow? Is simple pyramiding (treating it a like a cash or futures trade) a good option (pun unintended
?
Thanks & Regards,
Kalyan.
P.S. Another thing BAV how do you get the daily IV value for a contract? Is it possible to automate the calculation in Ami ?(actually i want to create an indicator out of the IV values).