Full-time traders from Chennai?

[mindgames]

Hello,

Let's say I have a choice b'ween "in the money" option contract and "futures" contract. I would like to know whether there is any benefit in choosing a futures contract over the options contract?

Advantages of options
Buying an options contract can help to lock-in the risk and we may not have to worry about extra-ordinary moves against our direction.

Disadvantages of options
1. Time decay: I can think of the issue of time decay --> but does it really exist if it is in the money?
2. Higher STT risk: Assuming that I forget to square off on expiry. O'wise I think liquidity may not be an issue and thus this may not be a big risk.

Am i missing something elementary?

Got it - delta varies according to money-ness

 

[Neeraj11111]

I myself have quit my job to start trading as full time trader........ But now I'm looking all around and finding that hundred of traders around are saying that you are a very great and experienced trader if you can make 20% of capital in the end of the month. It's very painful to hear. If I invest 1 lakh I must make at least 50K monthly to treat it as a full time profession otherwise what the hell of a profession we all are doing then? Hearing all this I'm seriously thinking to take a job again to do something meaningful with myself in terms of money............. trading with so little or negative results is a complete waste of time and efforts........ What do you say as a full time trader?

 

[pannet1]

Got it - delta varies according to money-ness

I am not expert .. at least yet. let me try. when you are bullish

When you buy futures the delta is 1
when you buy in the money the delta is nearly 0.5

so if you could substitute 2 call option with one future. the correct substitution would be buy 1 call option and sell 1 put option. this is something related to call-put parity.

why would one buy an option instead of future. the answer is flexiblity. you could square off one call option and keep the other running.

another thing is margin you need to invest
when you buy a call option .. there is no margin .. you just pay the premium. of course when you sell an option the margin requirement is same as futures.

just my 20 paise

 

[pannet1]

Iam from chennai :thumb:

hi sadiq,

welcome. are you a full time trader.?

if you are interested in meeting fellow traders PM your mobile number and i will call you when we have the next meet up.

 

[TraderRavi]

I myself have quit my job to start trading as full time trader........ But now I'm looking all around and finding that hundred of traders around are saying that you are a very great and experienced trader if you can make 20% of capital in the end of the month. It's very painful to hear. If I invest 1 lakh I must make at least 50K monthly to treat it as a full time profession otherwise what the hell of a profession we all are doing then? Hearing all this I'm seriously thinking to take a job again to do something meaningful with myself in terms of money............. trading with so little or negative results is a complete waste of time and efforts........ What do you say as a full time trader?

Find job as soon as possible

 

[Happy_Singh]

I myself have quit my job to start trading as full time trader........ But now I'm looking all around and finding that hundred of traders around are saying that you are a very great and experienced trader if you can make 20% of capital in the end of the month. It's very painful to hear. If I invest 1 lakh I must make at least 50K monthly to treat it as a full time profession otherwise what the hell of a profession we all are doing then? Hearing all this I'm seriously thinking to take a job again to do something meaningful with myself in terms of money............. trading with so little or negative results is a complete waste of time and efforts........ What do you say as a full time trader?

Yes, only 20/40% Monthly is Full Waste of Time . . . . Full Time waste . . .

Please Go and find a Full Time Job and Use Time Fully :thumb:


Happy

 

[Rish]

I myself have quit my job to start trading as full time trader........ But now I'm looking all around and finding that hundred of traders around are saying that you are a very great and experienced trader if you can make 20% of capital in the end of the month. It's very painful to hear. If I invest 1 lakh I must make at least 50K monthly to treat it as a full time profession otherwise what the hell of a profession we all are doing then? Hearing all this I'm seriously thinking to take a job again to do something meaningful with myself in terms of money............. trading with so little or negative results is a complete waste of time and efforts........ What do you say as a full time trader?

Friend.....when I quit...and started as full time trader.......struggled 2 years initially for making even 2% per month...(Though i kept cushion 3 years to protect/meet my family expenses.)...

Almost 4th year...i am able to breakeven and with consistency...

Message is......you should have mental strength to manage your financial commitments first 2 years, not depending trading....

Otherwise....better search a job and join...............family is more than important than anything....

All the best...

 

[pannet1]

Yes, only 20/40% Monthly is Full Waste of Time . . . . Full Time waste . . .

Please Go and find a Full Time Job and Use Time Fully :thumb:


Happy

Better idea would be to invest only that 20%/40% which you are going to win that month. So it makes 100% every month. :rofl:

 

[dreammerchant]

I am not expert .. at least yet. let me try. when you are bullish

When you buy futures the delta is 1
when you buy in the money the delta is nearly 0.5

so if you could substitute 2 call option with one future. the correct substitution would be buy 1 call option and sell 1 put option. this is something related to call-put parity.

why would one buy an option instead of future. the answer is flexiblity. you could square off one call option and keep the other running.

another thing is margin you need to invest
when you buy a call option .. there is no margin .. you just pay the premium. of course when you sell an option the margin requirement is same as futures.

just my 20 paise

ITM got delta of more than 0.7 and deep ITM is 0.9+ ATM only got 0.4 to 0.5 Delta

Sent from my A0001 using Tapatalk

 

[vijeykkomar]

hi to every one..