Options Doubt

[okabira]

1. Yes, all thinking is correct. (but 67 x 75 not 40) But why wait till expiry. You can square off option trade in next moment as well, if want to square it off. No problem in it.
2. If forgot to square off, then high STT has to be paid. But now a solution has been found for this as well. Let someone explain this solution, as I am not able to understand it (the whole procedure).
3. Options should be trade like stocks only. Yes max risk is 375, if SL triggers.
Bhai risky is a very subjective term. Options (I am talking of Nifty and BN options only) are very liquid, so slipping SL is not common, only if luck fails OR there is very fast fall, then there may be some possibility of it

BTW, are you for the first time to trade options.

yes bro .. gaining knowledge before plunging IN !!..

so basically i am A FOOL trading equities for this long ?? 6 yrs TBH..

last year i was thinking to do options but didnt start due to scary stories ...
Learning about options clicked me when ... i was reviewing my past expenses ..

recently ..
I paid about 18000 in expenses , Brokerage + Govt Charges.. (in last 60days)

Kamai 30000 , diya 18000 , net 12000 (all Round no.)

mehnat bahut kia . ...

see below SS..

this calculation is for reliance ...


Bhai compare equities and option table ..
I am donating too much to govt ?? LOL ?

 

[traderniftybull]

Okabira bhai
But I may caution you, that trading options are no easy trades.
Yeh woh laddoo nahi hai jo moonh mein dala aur gale se neeche utar gaya, kayi baar gale mein atack bhi jata hai.
Otherwise everyone would have become millionaires by trading options,

Yes, it gives profit, good profit, only when you right and you play it intelligently and not otherwise, otherwise it will blow your account in no time.

But which other instrument, gives you profit, when you are wrong and does not blow your account. But at least you know what is the max loss of a trade, when you trade options (buying first).

 

[cinderblock]

acha bhai log yeh batao ..

NF LTP : 10,167
so for strike prices

ITM = all < 10200
ATM = 10200
OTM = 10250

right ?

Wrong actually. You see the yellow highlighted portion of the option table? Only those strike prices are ITM.

See the footnote in the option chain.

 

[okabira]

Otherwise everyone would have become millionaires by trading options,

yes ... thats what i was thinking .. if it were too simple ... hahaa

Yes, it gives profit, good profit, only when you right and you play it intelligently and not otherwise

yes .. .. the whole logic of stock market is to be right and make money isnt it ???
i mean except option(hedging) ... in all category ... even in delivery. ... we when are wrong we lose .. when we are right we win ..

otherwise it will blow your account in no time.

so many people accounts get blown away by taking risk more than they can chew .? isnt it ?

people think its just 25 rs / or 50 rs option ... let me take risk in this ! I am not into this thinking .. already know this trap .

But which other instrument, gives you profit, when you are wrong and does not blow your account.

futures was introduced .. to hedge stock (for cattle , corn , wheat etc etc )..right ?
options were introduced to hedge too !.

now people exploited it and hedging OPTION itself by an option ... to make constant profits ..though small .. but constant.

Such greedy people we have become ???

I am in no mood to carry forward .... nor i am interested in hedging option with option...

what i am asking is to play only Buying CE/PE ... till i get hold off then Option selling ..

Just like stock .. cant it be done ... my MAJOR concern is .. i am paying way too much to govt .. LOL.
i want to bring THAT costs down .. so what if I treated Options just as Stock and trade it ... buying and selling?
Cant it be done .. you tell me ?
well i am profitable equities though.


Tell me / guide me MORE ABOUT RISK FACTOR .. and how much I can lose .

 

[okabira]

Wrong actually. You see the yellow highlighted portion of the option table? Only those strike prices are ITM.

See the footnote in the option chain.

yes ,,, the yellow ones are ITM ... i was talking about CE only ..not PE.. my bad

 

[traderniftybull]

yes ... thats what i was thinking .. if it were too simple ... hahaa

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Just like stock .. cant it be done ... my MAJOR concern is .. i am paying way too much to govt .. LOL.
i want to bring THAT costs down .. so what if I treated Options just as Stock and trade it ... buying and selling?
Cant it be done .. you tell me ?
well i am profitable equities though.


Tell me / guide me MORE ABOUT RISK FACTOR .. and how much I can lose .

- It can be done, but trading it rightly and diligently in the mantra.
- If you trade futures, then enter and exit at around the same points/levels of that of futures.

I have already written a few posts on options, in various threads, in last 3-4 days. you may go through it. I am no good in explaining a subject first, but if you have a query then I will try to solve it to best of my knowledge.

 

[Kumar .]

well i am profitable equities though.

if you are really profitable trading equities then you should work on scaling up there..
option could be a waste of time,waste of money too.

 

[Subhadip]

yes ... thats what i was thinking .. if it were too simple ... hahaa



yes .. .. the whole logic of stock market is to be right and make money isnt it ???
i mean except option(hedging) ... in all category ... even in delivery. ... we when are wrong we lose .. when we are right we win ..



so many people accounts get blown away by taking risk more than they can chew .? isnt it ?

people think its just 25 rs / or 50 rs option ... let me take risk in this ! I am not into this thinking .. already know this trap .



futures was introduced .. to hedge stock (for cattle , corn , wheat etc etc )..right ?
options were introduced to hedge too !.

now people exploited it and hedging OPTION itself by an option ... to make constant profits ..though small .. but constant.

Such greedy people we have become ???

I am in no mood to carry forward .... nor i am interested in hedging option with option...

what i am asking is to play only Buying CE/PE ... till i get hold off then Option selling ..

Just like stock .. cant it be done ... my MAJOR concern is .. i am paying way too much to govt .. LOL.
i want to bring THAT costs down .. so what if I treated Options just as Stock and trade it ... buying and selling?
Cant it be done .. you tell me ?
well i am profitable equities though.


Tell me / guide me MORE ABOUT RISK FACTOR .. and how much I can lose .

Possible....but u have to read up the main points of Delta, theta and Vega.

Learn the Greek s ..how they behave.. then only earning will come to you

 

[Kumar .]

There is a difference between trading Options and Equity Stock which is-
In Eq,you can put 3 orders(buy,target order and sl order) but in option you can place only 2 orders(buy and target order or buy and sl order),if you want to place 3rd order you must have full margin.

 

[Kumar .]

Possible....but u have to read up the main points of Delta, theta and Vega.

Learn the Greek s ..how they behave.. then only earning will come to you

Happy to See You