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| Discuss Covered Options at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Rk I would advise you to do the Historical Vol yourself- Just to be sure ... |
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#11
3rd September 2007, 01:42 AM
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Re: Covered Options
Rk
I would advise you to do the Historical Vol yourself- Just to be sure that you know what you are getting. Historical Vol- pertains to Volatility of asset over time. This is mean that volatility will converge to. The IV is purely calculated from the options price as quoted- so comparing this with HV gives you an idea whether they were cheap or costly. I dont have real time access to option quotes- so my illustration was based on IV levels I see. Looks like the quotes Options Oracle assumed are dated- I would suggest you stick to the import of what I was trying- not the actual numbers! 
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#12
3rd September 2007, 07:41 AM
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Re: Covered Options
Hi Srikanth,
From the above examples, I might understand some of the things which mentioned by you. Once we decide to trade by assuming that support and resistance for that particular stock or index is known then we can sell High IV stock/index and vice versa. Please let me clear if I am wrong.... Regards! Sreeny
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#13
13th September 2007, 12:27 AM
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Re: Covered Options
Quote:
IV can be high for a good reason- say a takeover rumor- so you dont necessary sell high IV blindly. But you definitely will benefit by checking the IV levels ( and comaring with historical IV)- so you dont end up overpaying. Also helps in selecting the strike price if you use that along with delta- that I described.
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#14
24th October 2007, 06:23 PM
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Re: Covered Options
Dear Seniors,
Could anyone help me how to make money in covered calls. Suppose I buy one lot of future of rcom at 750 and sell Rcom call at 62 will i gain 700 x 62 = 43400... I know there is risk if rcom comes down............ Buying in cash and selling future at a premium of 1 to 1.5 % is good. Please seniors advise and help .............which strategy is good without or with minimum risk...............Reply.............please
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#15
28th October 2007, 12:15 AM
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Re: Covered Options
[quote=srikanth_kandalam;111390]Let me take a stab at it. The first thing I would do is to anaylze the charts to get a good idea of support and resistance- here is the link, I prefer candle charts
http://www.icharts.in/charts.html This stock has support at 50- and if you want to be more nuanced slightly above 55 is the first support. It is fairly obvious there is strong resistance at 70. First You need to have a trading plan ( I would suggest you write it down- as we are emotional people and we react!). Write down what you expect and what you feel you are risking versus the reward for this. The stock has been sideway for a while- but for a 6 month view- it has an distinct uptrend ( I think there is some talk of a stake sale etc- and you need to monitor that) Mr Srikanth.......... I would like to know more about writing covered calls. buying in future and selling calls usually make money if the share price is in sideways or not in major uptrend. If there is anyother strategy please let me
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#18
7th November 2007, 08:17 AM
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Re: Write Option
Quote:
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#19
8th November 2007, 02:10 AM
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Re: Covered Options
Can any one know relation between open interest and volume in the options.And how they are related to each other..i guess if someone can predict the option price if they find the relation between them...
I want to know the Indian broker were i can short the options....
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#20
18th November 2007, 05:42 PM
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Re: Covered Options
Quote:
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