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#11
19th September 2005, 11:16 PM
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Re: Put-Call Ratio
"It is widely known that options traders, especially option buyers, are not the most successful traders. On balance, option buyers lose about 90% of the time. "
This is a very widely used figure (90%), and is a misconception. Lawrence McMillan who has traded options for a living, and is the author of an excellent book "Options as a strategic investment" puts the figure at a more believable 50%. 
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#12
21st September 2005, 01:40 PM
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Re: Put-Call Ratio
Dear Ivan
my personal experience on SPY : whenever i buy call i loose, but I sell put I win or when i buy put i loose, i sell call i win market can move up , down, sideways ( lets say 33% chances) so when buy call yr chance win is 33% (only move up) but when sell put yr chance win is 66% (sideways, & up) just sharing my personal experience on this subject.I believe sell is u make and buy u loose. about the percentage whether 90% or 50% dont know, but me personally i have lost 99% or maybe 100%. b rgds gopii
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#13
21st September 2005, 01:45 PM
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Re: Put-Call Ratio
the article surely is good, but if u follow PCR as it is, i dont think you can make any money. reason is it has quite random movements, moreover PCR data is available to us i.e. retailers at the end of the day, so if we predict based on pcr that the market will go down and its worth shorting, it may very much happen that market will already open low thus not giving u a opportunity to short. PCR when smoothened works well (and is typically used this way in india and abroad)
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#14
21st September 2005, 02:04 PM
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Re: Put-Call Ratio
What you say may be true. But then the risk of selling options is much higher. Selling options, you will keep making small amounts of money, but one large move against you can make everything blow-up in your face. Not so while buying options. You will have lots of small losses, but a few big moves will make you much more than you have lost. You have to consider the asymmetric profile of options.
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#15
21st September 2005, 02:15 PM
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Re: Put-Call Ratio
Hi Friends
Please tell me about the normal brokerage for Options.. I have calculated my brokerage for options and its 0.94 +service tax+ other levies.006%+ Stamp Duty.. Its a normal brokerage or my broker is charging high...
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#16
21st September 2005, 02:57 PM
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Re: Put-Call Ratio
Quote:
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#17
21st September 2005, 03:13 PM
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Re: Put-Call Ratio
Quote:
Dear Traderji First of all thanks for your reply. My Calculation may be wrong that's why i am uploading herewith my Contract Note. Please check the brokerage on this contract note. Thanks
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#18
21st September 2005, 03:25 PM
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Re: Put-Call Ratio
Sorry for wrong calculation...
I think it is .59
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#19
21st September 2005, 03:28 PM
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Re: Put-Call Ratio
Dear Ivan
what u say is very true, hence nowadays i am hedging it by credit call spread and that has worked quite ok. luckily the buy call has never been excersied. basically because market not so volatile like the Indian market (except for this last month due to crude prices and katarina) also the open positions are much larger. Ivan any idea of good options broker in Pune ?? B rgds Gopii
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#20
21st September 2005, 03:40 PM
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Re: Put-Call Ratio
Sorry gopii, no idea of any brokers in Pune.
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