Traderji.com - Discussion forum for Stocks Commodities & Forex

dont buy out the money options

Discuss dont buy out the money options at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; as some analysts r recomonding dont buy out the money calls and puts. u will ...


Go Back   Traderji.com - Discussion forum for Stocks Commodities & Forex > THE MARKETS > Derivatives > Options

Notices


Advertise Here

Reply
 
Thread Tools
Sponsored Links
  #1  
Old 22nd July 2008, 09:36 AM
Member
 
Join Date: Dec 2007
Posts: 18
Thanks: 0
Thanked 1 Time in 1 Post
tomdickharry is on a distinguished road
Reputation: 18
Default dont buy out the money options

as some analysts r recomonding dont buy out the money calls and puts. u will lose
money both sides insteady sell them. there is every chance that the market remains range bound.
Reply With Quote
  #2  
Old 22nd July 2008, 12:20 PM
Member
 
Join Date: Oct 2007
Posts: 139
Thanks: 11
Thanked 10 Times in 8 Posts
fire_gun is on a distinguished road
Reputation: 36
Default Re: dont buy out the money options

i dont agree... technicals says over 14100 we may see some more upside and over4200 we may see sum good upside as it will cross doji on daily charts..and if goverment falls then we may move to 4000 in nifty at least..so buying one call and one put as a strangle with next seriesof august is worth to take positions..
Reply With Quote
  #3  
Old 24th July 2008, 06:16 PM
Member
 
Join Date: Jul 2008
Location: delhi
Posts: 676
Blog Entries: 1
Thanks: 489
Thanked 305 Times in 138 Posts
praveen taneja is a jewel in the roughpraveen taneja is a jewel in the roughpraveen taneja is a jewel in the roughpraveen taneja is a jewel in the rough
Reputation: 320
Default Re: dont buy out the money options

Quote:
Originally Posted by fire_gun View Post
i dont agree... technicals says over 14100 we may see some more upside and over4200 we may see sum good upside as it will cross doji on daily charts..and if goverment falls then we may move to 4000 in nifty at least..so buying one call and one put as a strangle with next seriesof august is worth to take positions..
sir i buy always strangle options but never get out of them correctly is there any good method to book it like i hav bought today 4200 put n 4600 call at 4400 nifty so wat should b my strategy to exit these are of aug so i hav plenty of time
Reply With Quote
  #4  
Old 25th July 2008, 08:59 PM
Member
 
Join Date: Oct 2007
Posts: 139
Thanks: 11
Thanked 10 Times in 8 Posts
fire_gun is on a distinguished road
Reputation: 36
Default Re: dont buy out the money options

it is good.. hold it .....
Reply With Quote
  #5  
Old 25th July 2008, 09:27 PM
Member
 
Join Date: Apr 2006
Posts: 2,338
Thanks: 717
Thanked 1,084 Times in 524 Posts
Czar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud of
Reputation: 1139
Default Re: dont buy out the money options

Quote:
Originally Posted by tomdickharry View Post
as some analysts r recomonding dont buy out the money calls and puts. u will lose
money both sides insteady sell them. there is every chance that the market remains range bound.
To all not having good experience in options, please don't sell options, only buy them, in or out of money is your option, but avoid selling them as you will land up with limited profits & unlimited losses if markets go against you...

If you prefer buying cheap out of money then make sure enuf time is their for expiry or then go for near month, otherwise they will be worthless...
Reply With Quote
The Following User Says Thank You to Czar For This Useful Post:
snpalve (14th August 2008)
  #6  
Old 25th July 2008, 10:47 PM
Member
 
Join Date: Jan 2008
Posts: 116
Thanks: 1
Thanked 3 Times in 2 Posts
krishna23 is on a distinguished road
Reputation: 13
Default Re: dont buy out the money options

there are no hard rules, depending on the nature of market different options strategies can be used...
and i agree that option writing can land u into serious trouble if u don't understand ur obligations...
Reply With Quote
  #7  
Old 26th July 2008, 09:23 AM
Member
 
Join Date: Dec 2007
Posts: 18
Thanks: 0
Thanked 1 Time in 1 Post
tomdickharry is on a distinguished road
Reputation: 18
Default Re: dont buy out the money options

Better exit both positions soon. because nifry will be range bound and most probabley within 4200 to 4600. You will lose bothsides if it closes any where in this range u can observe a significant cut in the premium already.
Quote:
Originally Posted by praveen taneja View Post
sir i buy always strangle options but never get out of them correctly is there any good method to book it like i hav bought today 4200 put n 4600 call at 4400 nifty so wat should b my strategy to exit these are of aug so i hav plenty of time
Reply With Quote
  #8  
Old 26th July 2008, 09:31 AM
Member
 
Join Date: Oct 2007
Posts: 139
Thanks: 11
Thanked 10 Times in 8 Posts
fire_gun is on a distinguished road
Reputation: 36
Default Re: dont buy out the money options

Quote:
Originally Posted by tomdickharry View Post
Better exit both positions soon. because nifry will be range bound and most probabley within 4200 to 4600. You will lose bothsides if it closes any where in this range u can observe a significant cut in the premium already.
i dont agree.......... nifty will break 4600 upside soon if global markets remains postive and 4200 will be broken if any negative news comes in...he ebtered around 4400..so he need nifty 4600-50 on upper side to be handsum profit and on downside he need around 4150...
Reply With Quote
  #9  
Old 26th July 2008, 10:11 AM
Member
 
Join Date: Apr 2006
Posts: 2,338
Thanks: 717
Thanked 1,084 Times in 524 Posts
Czar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud ofCzar has much to be proud of
Reputation: 1139
Default Re: dont buy out the money options

ya fire_gun but just 4 sessions left... odds may not favour...
Reply With Quote
  #10  
Old 26th July 2008, 10:52 AM
Member
 
Join Date: Oct 2007
Posts: 139
Thanks: 11
Thanked 10 Times in 8 Posts
fire_gun is on a distinguished road
Reputation: 36
Default Re: dont buy out the money options

Quote:
Originally Posted by Czar View Post
ya fire_gun but just 4 sessions left... odds may not favour...
iam talking about august series...
Reply With Quote
Sponsored Links

Reply

Bookmarks


Advertise Here


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT +5.5. The time now is 11:02 AM.

Indemnity, Disclaimer & Disclosure Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum Rules Disclaimer & Disclosure and indemnify Traderji.com, its associates and related parties of all claims howsoever resulting from the usage of the forum.
Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. Traderji.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
 


Copyright © 2001 - 2008, Traderji.com All Rights Reserved.

Recommended Websites - www.TradersEdgeIndia.com - www.TradingPicks.com - www.MasterOfTrading.com