Pls Share Common Mistakes in Option Trading

[mirji]

Visit smartfinance.co.in
They have a book on Futures and options named

" Master's Key to Futures and Options "
Mirji

 

[mirji]

Hi,

There is also another Good Book available at

zyberstock.com/book.html
Mirji

 

[zse9]

Let me preface by saying I am a beginner in the Derivatives and Stocks market.

During the last 30 minutes of the option expiry yesterday,
ONGC fluctuated between 850 and 871, though it had stayed around 850 for most part of the day.
NIFTY 3929-3958
AIRTEL 627-645
WIPRO 591-604
HCLTECH 615-636

So is 2-3% fluctuation under heavy volume normal within the last 30 minutes of the expiry, though the market was mostly flat for most of the day.

And to the experts in this space, can you please explain why this kind of very high volatility exist. Is the wise practice to close positions at least 30 minutes before expiry rather than let the options expire.

 

[beginner_av]

It is very wise to square off before if u cannot withstand volatility. Volatility always increases as expiry approaches

 

[swinlife12]

i have lost 12000 within a week in option trading. on 27th july i bought nifty 5100 ,5000,4900. After i bought it went to 5300. my total investment came down to just 1000.. almost 11k i lost.. These is my one month salary. i don know what i do? before 31 aug nifty will come to 5000???????????