Selling Puts

[rajeshn2007]

There maybe some strategy or something like that, buying deep out of the money puts- every month of the year.
It is normal for our markets to hit one lower circuit every year( except for the last year- upfreeze).

 

[sihasan]

Based on my analysis I find that there is atleast one month in a year, wherein we can expect huge range (1000+ points). So if you can predict the event around which you expect big moves, then it makes sense to buy such options.

I have another question. Lets say I sell a NIFTY option and for some reason the volumns on that strike is low. Can this position be forced closed by the echange prior to expiry, or its either me or expiry that can close the position?

 

[Capricorn]

The exchange cannot close any position on its own, only u or expiry it is.

Normally chart patterns reflect the psychological behavior of the market so can suggest anticipated moves to some extent.

 

[AW10]

I have another question. Lets say I sell a NIFTY option and for some reason the volumns on that strike is low. Can this position be forced closed by the echange prior to expiry, or its either me or expiry that can close the position?

Nifty options are of EUROPEAN type (indicated by E in PE/CE).. These options can't be excercised before expiry. Stock options in our mkt are of AMERICAN type (indicated by A in PA/CA).. Amercian options can be excercised by buyer before expiry and if that happens, exchange will assign it to some seller.

Happy Trading

 

[MurAtt]

:thumb:

The exchange cannot close any position on its own only u or expiry it is.

........

 

[Capricorn]

:thumb:

The question was about nifty options.. and that was what i was referring to