Correcting Mistakes-Option Help

Satya.

Well-Known Member
#1
hi,i trade naked options a lot.i dunno nythng abt options greeks.
i trd wid zerodha.i read their option greek material,bt i failed 2 understnd it.

if nf is going up,i simply buy itm or atm ce,if nf is going down i buy pe.
(i trd stock fut too.bt nt profitable yet.)

ok,i think i m doing something wrong wid mm ??so this thread for a query-

if call price is say 200=200X75=15000rs
i buy 4 lots of ce in 60k money i hv.

when its 60=60X75=4500rs
i buy 8-10 lots of ce-pe in this amount.

so,is it really risky as per mm?
for nf-bnf we use 1-1.5L per lot,bt what abt options?
for option also u using 1L per lot?


pls answer.it will help to plan my trds in 2017.

i hv made a lot of mistks in 2016 which i dont want 2 repeat in 2017.
 

travi

Well-Known Member
#2
hi,i trade naked options a lot.i dunno nythng abt options greeks.
i trd wid zerodha.i read their option greek material,bt i failed 2 understnd it.

if nf is going up,i simply buy itm or atm ce,if nf is going down i buy pe.
(i trd stock fut too.bt nt profitable yet.)

ok,i think i m doing something wrong wid mm ??so this thread for a query-

if call price is say 200=200X75=15000rs
i buy 4 lots of ce in 60k money i hv.

when its 60=60X75=4500rs
i buy 8-10 lots of ce-pe in this amount.

so,is it really risky as per mm?
for nf-bnf we use 1-1.5L per lot,bt what abt options?
for option also u using 1L per lot?


pls answer.it will help to plan my trds in 2017.

i hv made a lot of mistks in 2016 which i dont want 2 repeat in 2017.
You got it all wrong bhai.

NF/BNF 1L/lot is a formulation to have a couple of losing streaks and not cripple the account. Practically, its not 1L or 2L theory, but how much you risk per lot per trade.
So per lot if you risk 20pts BNF, you will loose inr. 800/lot per trade.
Theoretically, you can do 100 loosing trades in a row to blow the a/c.

Apply same risk logic to options, else you'll blow 1L in 2-3 trades also bcos options decay over time and loose value whether they are A,I,or OTM.
 

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