The Giant thread of options

[kkseal]

Guys, think i'm getting the 'hang' of options better now. Certain things written by BAV & Sanjay have helped. I'm still following my basic rules, but a few subtle changes based on what's been discussed here have worked wonders. (Most importantly i'm doing it in a lot more relaxed manner now & doing it both ways & even trying simple - though imperfect - hedges).

You guys are great Please carry on the good work.

Regards,
Kalyan.

 

[kkseal]

A look at volatility & Option pricing from a different perspective - that of ESOPs.


http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159308188388&pagename=JPM_redesign%2FJPM_Content_C%2FGeneric_Detail_Page_Template

http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159308190641&pagename=JPM_redesign%2FJPM_Content_C%2FGeneric_Detail_Page_Template

 

[uasish]

Yup

Nice thread, I am digging into options myself.


Rgds
CV

And i start Digging after 1 Long year.

 

[uasish]

Kalyan,

I could not find Sanjay's Delta thing.

Asish

 

[rakesh_29]

Re: Time spreads, anyone?

Here I go...after seeing some requests on ..........................
More depending on response

Hi all,

I am a new member, so please excuse me if I am being repetitive. First, a big THANKS to beginner-av for starting this thread, and to Ashish, Kalyan and sanjay et al, for all the gyan given by them.

I have started trading in Index options for past couple of months, and am also studying the theory - am pretty much at the initial end of the learning curve. To my mind, the only certainty in option trading is Time Decay, which can be exploited through horizontal and diagonal spreads. SO far contracts with only 3-month life (and that too with poor liquidity) were available. Now Long-Term (up to 3 years' life) options have been introduced and I see from NSE site that these are quite actively traded, particularly the DEC-2008 ones.

Would anyone care to comment on spread strategies suitable for current market conditions? Has anyone started trading in Long-Term options? How? Sharekhan software still limits you to 3 months' validity. Please share your experiences

-Rakesh

 

[kkseal]

Kalyan,

I could not find Sanjay's Delta thing.

Asish

Asishda, if you mean the spreadsheet posted by Sanjay, you'll find it here

http://www.traderji.com/trading-psychology/20527-what-edge-you-have-markets-6.html#post165336

(Post #52 Attachment)

Regards,
Kalyan.

 

[jamit_05]

BAV,

In one of your earlier posts it was said that one should watch the IV and historic Volatility. How does one go about calculating these, say for NIFTY. Please provide a source or calculation or explaination.

Thank you.

 

[scplindia]

Very informative posts in this thread

Thanks