I am a new comer in day trading. For the last two weeks my assumptions are working fine with 80% accuracy. Now I have little bit of confidence to enter the market in live.
Please give me your opinion about the following.
What will happen if I bought both Call and Put options in Nifty at the end of the day in speculative market trend. One TV program participant told that we can make money 100% by doing so.:clap:
Hi
Please note that it is always risky to play option with naked trade, i.e., to buy call or put ,however the loss is to the extent of buying value of call/put. You may got one/two time 100% profit but that not all, history shows all small investors of buyer of put/call are looser. Please remind that who is in the opponent side of the buyer of call/put option? No doubt that FII and HNI are the seller.
Practically they r the operator of these call/put option. They have lot of monetary strength to manipulate the price movement in their favor. So it is better to trade option strategically with buy/sell of put or call option. There are so many strategically operated procedure. To know that one have to go thoroughly in study option materials. One have to genuinely study the trend of the market. To study the FII trading behavior, market volatility,indicator performance etc.
In fact to days market movement is most erratic, practically Range Bound, gap up/gap down opening is normal happening and rest of the period move in range. So always found that the buyers of Call/Put option falls in the tap of Time Decay.
Practically the buyer of Call/Put option takes the roll of Avimanyu in the CHAKRABYUHA as written in Mahavarata. One can enter very very easily, but the escape is rather difficult.
