Day Trading Stocks & Futures

[onequorauser]

Of all the Thursdays,today I decided against writing options. On top of that. ..had gambling instincts kick in and bought a straddle in the last one hour...

 

[sanju005ind]

Of all the Thursdays,today I decided against writing options. On top of that. ..had gambling instincts kick in and bought a straddle in the last one hour...

Me too did the same mistake.

 

[nil.nik.9777]

Of all the Thursdays,today I decided against writing options. On top of that. ..had gambling instincts kick in and bought a straddle in the last one hour...

Options itself is a gambling..

 

[onequorauser]

Options itself is a gambling..

Here we go again....

 

[onequorauser]

Here we go again....

By the way..one of the biggest critics of derivatives.. Mr. Warren Buffet who refers to derivatives as weapons of mass destruction has made most of his money through Ajit Jain who did so by selling 'smart insurances' which is nothing but option writing. They are wonderful tools, slightly non intuitive nevertheless.

Problem is that we only scratch the surface and either buy or sell naked options. There is a whole world of traders who make great amount of money through options. look at the salibas of the world

Another thing is of all the instruments, there isnt anything besides options that allows you to exactly define your risk in the sense- if done correctly- you can know before hand what your maximum risk is. Whether trump declares a trade war or SBI replenishment plan is announced, if you have your strategy placed, neither can impart a loss more than what was planned.

You can make money whatever direction the market goes..(ok today was a bad example...as I said it was pure gabmbling)

Compare it with either stocks or naked futures where an over night gap can create major distruptions to your equity curve.

My point is options provide you a possibility of defining risk better than any other instrument..(read it as.. gambling..albeit lesser than other instruments on a day other than expiry day)

 

[TraderGYO]

By the way..one of the biggest critics of derivatives.. Mr. Warren Buffet who refers to derivatives as weapons of mass destruction has made most of his money through Ajit Jain who did so by selling 'smart insurances' which is nothing but option writing. They are wonderful tools, slightly non intuitive nevertheless.

Problem is that we only scratch the surface and either buy or sell naked options. There is a whole world of traders who make great amount of money through options. look at the salibas of the world

Another thing is of all the instruments, there isnt anything besides options that allows you to exactly define your risk in the sense- if done correctly- you can know before hand what your maximum risk is. Whether trump declares a trade war or SBI replenishment plan is announced, if you have your strategy placed, neither can impart a loss more than what was planned.

You can make money whatever direction the market goes..(ok today was a bad example...as I said it was pure gabmbling)

Compare it with either stocks or naked futures where an over night gap can create major distruptions to your equity curve.

My point is options provide you a possibility of defining risk better than any other instrument..(read it as.. gambling..albeit lesser than other instruments on a day other than expiry day)

good points, I would add one more point i.e. probability. With options you know your probability of success for you strategy even before you put on that trade.

 

[GENIETRADE]

Somewhere in this forum, someone traded banknifty and nifty overnight swing trades with options hedges. He holds the positions overnight with CE/PE options and next morning he closes CE/PE options. The NF and BNF is traded usually. But just before market closure he again hedges them. I think that is a great way to trade indices especially when they tend to open with gaps. Peace of Mind is the play here though it reduces profitability.

 

[Raj232]

Of all the Thursdays,today I decided against writing options. On top of that. ..had gambling instincts kick in and bought a straddle in the last one hour...

But for which series expiry was it ?

 

[traderniftybull]

Options itself is a gambling..

Can you define (what is) gamble or gambling
and
how you relate trading options as gambling

 

[onequorauser]

But for which series expiry was it ?

This thursday. 19042018.