why put price is not increasing

[whisky]

Hi all, i noticed that when nifty increases then put price will decrease but, now nifty is going -ve but still my put size is not increasing why

I am having 5800 put 1000 qnty current price is about Rs.3/- why so ?

As the purpose of such deep OTM is to eat premium.

 

[ashu1234]

As the purpose of such deep OTM is to eat premium.

Better word for such otm puts premium is cheap insurance against market falls.
Who would want to eat 3 rs premium by investing 20k

 

[whisky]

Better word for such otm puts premium is cheap insurance against market falls.
Who would want to eat 3 rs premium by investing 20k

That is the whole catch and that is why insurance companies are making money.:thumb:

 

[ashu1234]

That is the whole catch and that is why insurance companies are making money.:thumb:

I guess writing and earning 20-100+ points comes into the category of Insurance....sub 10rs calls and puts is just re-insurance

 

[trade_beginner]

@Ravi

Brother don't worry, it will come down I am also with this hope.. friday I guess Nifty will reach 6000....

 

[TraderRavi]

@Ravi

Brother don't worry, it will come down I am also with this hope.. friday I guess Nifty will reach 6000....

I have already booked @ 60% loss

 

[trade_beginner]

I have already booked @ 60% loss

if not coming down I will be in 100% loss no money left even to buy call to average waiting for december salary....

waiting for miracle

 

[pratapvb]

if not coming down I will be in 100% loss no money left even to buy call to average waiting for december salary....

waiting for miracle

whatever happens to this, before your next trade you need to ask and answer these questions first

1. are you aware of all option dynamics? - do you know what happens when mkt moves in favor, moves against you, when VIX moves against you, when mkt moves in your favor but too delayed (time decay), etc

2. what was the basis of your thinking that it will go even close to 5800....funadamental, technical, or hope?

3. kindly take effort to understand mkt dynamics and dynamics of various instruments available to you before using it.... A good carpenter can make a beautiful furniture with a saw, but in the wrong hands it could cut off the hand itself

4. there is no place for hope in the mkt.....yes it is about probabilities but you have to have a system where the win:loss ratio is in your favor

5. and last but not the least, what do you know about money management in taking positions. As this is all about probabilities one should not be risking more than 1-2% of your capital in a single trade so you are around to take the next trade that comes around

All the best

 

[LivetoTrade]

I got my money back yesterday with some profit @stock72

http://www.traderji.com/equities/90961-any-predictions-about-26th-dec-nifty-3.html#post901080

if not coming down I will be in 100% loss no money left even to buy call to average waiting for december salary....

waiting for miracle

 

[TraderRavi]

Hi all I am purely beginner any prediction about NIFTY 26th Dec put ? Since this week market is up day by day.. I have some lots average is about Rs.40..since last week LTP went near Rs.67, someone told me to buy at Rs.40 LTP its good price, and I got now today its market price is about appro Rs.23.

Any predictions experts ?

Thanks for your time in advance.

My strike price is Rs.5800 and by the way how to derive lot price (LTP) from strike price and current NIFTY index ??

I spent about Rs.40,000/- for this put if atleast if get my what I invested, enough for me.

I got my money back yesterday with some profit

Quotes from your previous thread in november , same trade or different trade ?