Expert Advice Needed - Naked Option Selling

travi

travi

Well-Known Member
#11
#11
That's why screen time is important, ppl can make good decisions,
like urs.

Mine was just from my experience, thinking like the smarts in the crowd and that's where I suggested 243.

Apparently, 242.35 was the day's high.
so yeah, what you've thought was the way to go.
Even if you bought future at inr. 243 and it went to 245, u could exit everything with no loss.
 
R

rajputz

Well-Known Member
#12
#12
travi said:
That's why screen time is important, ppl can make good decisions,
like urs.

Mine was just from my experience, thinking like the smarts in the crowd and that's where I suggested 243.

Apparently, 242.35 was the day's high.
so yeah, what you've thought was the way to go.
Even if you bought future at inr. 243 and it went to 245, u could exit everything with no loss.
Click to expand...
In the end I always know that 2 out of 10 stocks will hit the stop loss. This time it was Apollo Tyres. I don't mind exiting at stop loss,
but I don't like the way it controls me. I was hoping that there might be a creative way in options like creating a spread or something which can make it a profitable trade.

I think screening a stock where my stop loss hit means reversing the position on futures is the better option. Because I am already selling at 3rd resistance. Or 3rd Support. If that is broken and with volume which might get suggested via Open Interest, then I might be able to add an edge.
 
S

samip2u

Member
#13
#13
Subhadip said:
Buy deep in the money call
Click to expand...
For deep ITM buy ...one potential issue would be the square off just before expiry ...mostly the ITM r being traded at discount from it's intrinsic value due. To huge STT on the sell positions on exercised options.

So liquidity need to be checked.as we can only able to sell..if someone is ready to buy it just before expiry! But why would one buy ITM call before expiry ???

Sent from my Redmi Note 3 using Tapatalk
 
Subhadip

Subhadip

Well-Known Member
#14
#14
samip2u said:
For deep ITM buy ...one potential issue would be the square off just before expiry ...mostly the ITM r being traded at discount from it's intrinsic value due. To huge STT on the sell positions on exercised options.

So liquidity need to be checked.as we can only able to sell..if someone is ready to buy it just before expiry! But why would one buy ITM call before expiry ???

Sent from my Redmi Note 3 using Tapatalk
Click to expand...
Never faced problem.

Generally I do shift to near exipry to near to the ATM call where no intrinsic or low intrnsic value there.
 
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