my option calls

bandlab2

bandlab2

Well-Known Member
#1
#1
sell nifty 3400 calls for 154
sell nity 3400 puts for 250

collect 400 rs per lot and sit quite for 10 days

safe range 3000-3800. square off when you get 150-200 per lot
 
S

sd_singal

Member
#2
#2
Sir

I have a contrarian view and I think it will be more logical to buy this straddle. Due to present volatile and uncertain market scenario, writing at the money options will be very risky.

Nifty closed at 3280. Incase the Global markets stabilise or recover little bit, there could be a strong rally due to short covering and buying support from some institutuios.

If you buy this straddle, I agree that you will break even only above 3800+ or below 3000. But any considerable movement in either way will bring some profit as 3400 strike price is very active and still some time value is left. Dont wait till expiry, book profit/square off with in 5-7 trading sessions. As it is buying, your risk is defined and if you write, it will create lot of tension till expiry in this volatile scenario.

Regards
 
S

subrata_ind

Member
#3
#3
I am very new to Stock market .I want to learn how to trade in options.May be i sound silly but my question is if I sell a nifty 4000 call at Rs 17 then there is maximum chance of making profit as nifty will have minimum chance to cross 4000 by this expiry.

Subrata
 
P

pkamalesh

Well-Known Member
#4
#4
subrata_ind said:
I am very new to Stock market .I want to learn how to trade in options.May be i sound silly but my question is if I sell a nifty 4000 call at Rs 17 then there is maximum chance of making profit as nifty will have minimum chance to cross 4000 by this expiry.

Subrata
Click to expand...
sir writing options is much more risky than buing them....u cant predic the markets just like that....if u buy a call of 4000 at Rs 17 then if nifty crashes below 3000 u still will lose max of 17 rs but if nifty runs the call might even reach upto 250 or 300.....
 
H

harvard.aspirant

New Member
#5
#5
subrata_ind said:
I am very new to Stock market .I want to learn how to trade in options.May be i sound silly but my question is if I sell a nifty 4000 call at Rs 17 then there is maximum chance of making profit as nifty will have minimum chance to cross 4000 by this expiry.

Subrata
Click to expand...
Never dream to become a write whatever be the scenario is...
 
S

srikanthko

New Member
#6
#6
Writing options can give you profit only when nifty trades in a range. If nifty swings wildly the you will be caught and loose huge money. Its better to buy calls (or) puts rather than writing them in volatile days.
 
bandlab2

bandlab2

Well-Known Member
#7
#7
sd_singal said:
Sir

I have a contrarian view and I think it will be more logical to buy this straddle. Due to present volatile and uncertain market scenario, writing at the money options will be very risky.

Nifty closed at 3280. Incase the Global markets stabilise or recover little bit, there could be a strong rally due to short covering and buying support from some institutuios.

If you buy this straddle, I agree that you will break even only above 3800+ or below 3000. But any considerable movement in either way will bring some profit as 3400 strike price is very active and still some time value is left. Dont wait till expiry, book profit/square off with in 5-7 trading sessions. As it is buying, your risk is defined and if you write, it will create lot of tension till expiry in this volatile scenario.

Regards
Click to expand...
i dont see any massive rally or short covering coming up this week. for some time we may be range bound. even if we rally, ppl will short again

i will square off by next monday or i i get 150-200 profit
 
S

sd_singal

Member
#8
#8
bandlab2 said:
i dont see any massive rally or short covering coming up this week. for some time we may be range bound. even if we rally, ppl will short again

i will square off by next monday or i i get 150-200 profit
Click to expand...
Fine. If the Dow slips 600 pts further over night ??

Where you will keep your SL?
 
bandlab2

bandlab2

Well-Known Member
#9
#9
our total premium is around 350. we are 50 points in profit.

my stop loss would be loss of 100 rs.

when volatality is high, premiums are high, so take advantange by selling

for contrarian, i would NOT buy at 3400 since the total premium wold be 400. i will do 3200 put and 3600 call. this is to reduce the total outflow
 
A

AW10

Well-Known Member
#10
#10
harvard.aspirant said:
Never dream to become a write whatever be the scenario is...
Click to expand...
Professionals make consistent money thru writing Options. Odds are in the favour of writer. Time decay works in favour of writer.Crux of the issue is to manage the risk of writing option. If one masters that then there are many high probablity opportunities open up.

Happy Trading.
 
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