The Giant thread of options

SGM

Active Member
How can that be determined without Theta? (TheoryPrc + Delta +Charm??)

Again how to determine this 'expected liquidity'?

This is the most baffling (& alarming) statement in your post - could you elaborate a bit on that one please, what exactly is this payoff model you refer to & (more importantly) how does it make reasoning/signal/trigger totally irrelevant?
You may be baffled or alarmed or whatever, but as far as I know the choice of SP should be based on payoff model & liquidity and this choice will be independant of the reasons for your bullish/bearish bias. (I assume that you are not aiming for the fences)

Does this mean i'm playing around with an instrument in which the price (premium) movement is completely random & without appropriate strategies (the strangles & dangles or whatever) a gain or loss is pretty much a coin toss??
I don't know where you got this random stuff from, I am even wondering where did I say/allude strategies are irrelevant.

Anyway its tough for me to cope up with all this semantics, I have nothing more to add, maybe i should just shutup and listen to the experts :)


Coin Toss :confused: , abhi se he Itne Bhang Chad gayee ... bura na mano Holi Hai :D

Happy Holi
Sanjay
 

kkseal

Well-Known Member
Ok Guruji will keep your payoff model in mind Now get your erect choti down :D

(Hypothetically speaking, would Nifty 6000 Put with 3 yrs to expiry be safe enough according to your 'payoff' model :D)

And no more guruspeak for me please. Better to do my own thing my own way.

Regards,
Kalyan.
 
Here I go...after seeing some requests on options related stuff...I start this thread with a dramatic name.

What this thread is not...
1.IT WILL NOT GIVE ANY TIPS EVER ON BUYING AND SELLING OPTIONS.
2.IT WILL NOT REPEAT THEORY AVAILABLE IN BOOKS ALL AROUND YOU...IF U CANT READ THAT...DONT BOTHER TRADING OPTIONS..send your money to me, I'll give u lot of blessings ;) or send to some charity with 80G benefits
3.IT WILL ELIMINATE ALL THE MATHEMATICS REQUIRED TO TRADE OPTIONS and hence by following this thread you will never be able to become an OPTIONS EXPERT.

DISCLAIMER - This is for educational purposes ONLY. This is not to get you attracted to options trading so that your broker can buy an alpha romeo next.

Why I am doing this? NOT ALTRUISM...to keep my brain from rusting.. and collecting my thoughts together...u can always add reputation points.

So here I start

Some practical ones that noone will tell you
1. Start with more than one broker, so when one is down...u are not down with him..you can always square off or adjust your position
2. Unless you are scalping, DO take a look at weekly and monthly charts
3. Somethings that you may not look when doing TA are extremely essential for options trading - Volatility both IV and Historic. Open Interest. Put-Call ratio
4. Trade only in very liquid stuff...else when the market turns you will be stuck..traders disappear at the drop of a hat
5. Make sure your broker is well capitalized...else brokerwide limit will be reached..you will be sucking your thumbs while the world will make merry
6. Make sure that marketwide limit is not reached...then everyone will suck their thumbs while traders in the cash market will make merry. You will NOT be able to adjust your position

More depending on response
Keep going,my friend!!

Saint
 
On 18 March 2008 I Buy March 08 - Nify 4900 C =rs 36 What To Do ?
Could we have this thread cleared for education and free from tips and "oh,my god!!What do I do?" threads......

Saint
 

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