Hey price, thanks for the research on various topics and ur posts in this thread.
EXCEPt :} for this one, which borders on insanity.
3 points out of 50
It is more than 3 points during last week of exp. For little higher price option ( 80-120 pt) it looses even 6-10 pt per day during range bound market.
If intraday margin block is less (like 5k, we can sell huge lots and make good profits).
1) option selling is the riskiest form of trading, bar none.
We don't face gap up or gap down in intraday, so here the risk is less.
Also a day trader who successfully trade with nifty futures every day, he used to the market movement. We already buy and sell nifty futures many times.
2) lol, u mean someone at zerodha will pre determine "range bound" days
Yes, experienced day traders can predict the range bound market to some extent after comparing various time frame charts. They can see the market as a whole. They change there strategy and indicators according to it. Some advanced traders use swing trade with options too only in the buy side. There are various traders exits in this world and you don't know all of them.
3) every brokerage firm that does go broke, gave out too much margin (to themselves or their customers) at some pt.
Please understand my view is only for intraday not positional. For intraday 5000 means 100 point, too much for a option. They can square of whenever capital goes below 80% like they do for MIS position for Nifty Future. All of brokers using cover order facility for Index Future where risk is less. There is mot much risk as they can cut off loosing trades even at 70% during intraday. Still we can get a benefit of 70 pt approximately for a Rs 100 option. There is NO gap up or down in intraday so it is definitely possible. Brokers already stop such margin facility during volatile day when there is RBI announcement or budget etc.
They can discuss and change the parameters for Stop Loss.
I think I have tried my best. Please note, the risk is different for Intraday when they square off all position 10 min before market closing or cut off position with 80% loss.
If im wrong or have misunderstood, i apologize.
Have a good week everyone.
EXCEPt :} for this one, which borders on insanity.
3 points out of 50
It is more than 3 points during last week of exp. For little higher price option ( 80-120 pt) it looses even 6-10 pt per day during range bound market.
If intraday margin block is less (like 5k, we can sell huge lots and make good profits).
1) option selling is the riskiest form of trading, bar none.
We don't face gap up or gap down in intraday, so here the risk is less.
Also a day trader who successfully trade with nifty futures every day, he used to the market movement. We already buy and sell nifty futures many times.
2) lol, u mean someone at zerodha will pre determine "range bound" days
Yes, experienced day traders can predict the range bound market to some extent after comparing various time frame charts. They can see the market as a whole. They change there strategy and indicators according to it. Some advanced traders use swing trade with options too only in the buy side. There are various traders exits in this world and you don't know all of them.
3) every brokerage firm that does go broke, gave out too much margin (to themselves or their customers) at some pt.
Please understand my view is only for intraday not positional. For intraday 5000 means 100 point, too much for a option. They can square of whenever capital goes below 80% like they do for MIS position for Nifty Future. All of brokers using cover order facility for Index Future where risk is less. There is mot much risk as they can cut off loosing trades even at 70% during intraday. Still we can get a benefit of 70 pt approximately for a Rs 100 option. There is NO gap up or down in intraday so it is definitely possible. Brokers already stop such margin facility during volatile day when there is RBI announcement or budget etc.
They can discuss and change the parameters for Stop Loss.
I think I have tried my best. Please note, the risk is different for Intraday when they square off all position 10 min before market closing or cut off position with 80% loss.
If im wrong or have misunderstood, i apologize.
Have a good week everyone.
I am little late (10 min) for sleep for this post, still I make it finished for you.
Happy Trading and Best Wishes.
Cheers.
