Although I m not new in Traderji and markets, I find myself novice in my understanding of markets, so I ll start with a question, then my observation (and forum participants guidance on the same) that "options are for sellers", and then i will show u ll a strategy for easy, definite, and risk free money.
I ve for the first time sold options, nifty ce 6250 jan prm 68 and nifty pe 6150 jan prm 71, margin to jo laga wo laga, they ve deducted 6873 as options mtom loss, when nifty spot closed at 6174 and fut at 6197, my ce closed at 65 and my put closed at 71.55.
my ques to u all is how do they calculate mtom p/l for option sellers, does it vary from broker to broker?
My RM started telling me that u sud not sell options its very risky and all that, but didnt had answer to my question.
coming to my second point, i observe that mostly option premiums are not for buyers, as my RM was telling me to buy the same thing I ve sold,
If i wud had put long strangle :
I wud hav started getting profit only abv 6250+139= 6389 and 6150- 139= 6011, but now I ll get something if nifty remains within 6389 and 6011.
so i observe that they hav defamed short strangle etc as Limited Profit Unlimed Loss, which is true, to fear away newcommers from shorting.
pl. all experienced ones !! throw light of Knowledge !!
I will share my idea of making short strangle risk free in my next post.
Thanks all for taking pain in reading my post, and thnx in anticipation for further guiding me.
I ve for the first time sold options, nifty ce 6250 jan prm 68 and nifty pe 6150 jan prm 71, margin to jo laga wo laga, they ve deducted 6873 as options mtom loss, when nifty spot closed at 6174 and fut at 6197, my ce closed at 65 and my put closed at 71.55.
my ques to u all is how do they calculate mtom p/l for option sellers, does it vary from broker to broker?
My RM started telling me that u sud not sell options its very risky and all that, but didnt had answer to my question.
coming to my second point, i observe that mostly option premiums are not for buyers, as my RM was telling me to buy the same thing I ve sold,
If i wud had put long strangle :
I wud hav started getting profit only abv 6250+139= 6389 and 6150- 139= 6011, but now I ll get something if nifty remains within 6389 and 6011.
so i observe that they hav defamed short strangle etc as Limited Profit Unlimed Loss, which is true, to fear away newcommers from shorting.
pl. all experienced ones !! throw light of Knowledge !!
I will share my idea of making short strangle risk free in my next post.
Thanks all for taking pain in reading my post, and thnx in anticipation for further guiding me.