How to sell options at expiry

Dear friends and seniors ,

I want to sell options at expiry to keep premium of a strike price , but dont know how to choose specific strike price ,
suppose Nifty spot is at 6800

the strike price of nifty 6900 call is rs 5 today before 2 days of expiry of course it will come to near about rs 1 to 2

and

the strike price of rs 6700 call is nearly rs 37

so i am confusing what is the geniune strike prike i have to sell that i get the premium .

i know if the price goes above or low the strike price i make loss but that,s an other thing .

please help and guide

That depends on the trend of the market and how it is progressing. I sold 6600 puts and when Nifty went above 6800 I sold 6700 puts..both look safe now.

Another trade I did was bought 6750 puts when market took a dip below 6800 and sold equal qty of 6700 puts and as market started going up and away from 6750, sold 6750 puts in phased manner and kept 6700 puts...but the risk was if the trend suddenly reverses, we may have to book losses.

Smart_trade

It is better to avoid selling options on expiry day as the risk reward is not favorable .

If market move sharply , you will lose your shirt.

Gama will be high on options on expiry day.

It will be high risk and low reward trade

thanks alot for clarification , sm

It is better to avoid selling options on expiry day as the risk reward is not favorable .

==> This statement not works during intra day basis on expiry day. If you hedge your sell positions considerably you will get chance at least once to exit gracefully with good profits in case some abrupt fall happen. That's the reason options play called more of professionals as playing between straddle and strangle comfortably is not cup of tea for everyone.

Why you use always word professionals. You seem to be professional . Good . Keep it up.

Teach me. I want learn from you. I am a amateur

Show me how to hedge on expiry day.

After your posts , I will ask some questions, you will have to answer

I am not here to show someone my talent. I am here to just guide people. God has given brain to every human being to apply the same.

Earlier i have created very nice thread and I was planning to guide step by step everyone how to make trades profitable comfortably. But some people came in between and drive the thread to some other direction which make the moderator to close the thread forcefully.

This time i not repeat same mistake. People when get information free of cost they start considering as junk and once that is paid is more valueable to them.

But yes if someone say something which is not applicable in real trades I may comment but that does not mean i am hurting someone. Only way to be successful in this field is study, study and study initially and once you capable then play comfortably.

http://www.traderji.com/options/917...a-day-using-hedging-principle.html#post921787

http://www.traderji.com/options/91675-trade-nifty-options-using-open-interest.html#post920448

Even post's about profits on five short lots on each side with a margin of 250'000 Rs per trade and a profit of 750 Rs in this one trade:

http://www.traderji.com/options/917...day-using-hedging-principle-4.html#post923505

Dear friends and seniors ,
I just wont to learn options can any one guide where or from whom i get knowledge of options , ( friends i have good knowledge of technicals ( by this i am not letting down to anyone ) , i just wont learn , your guidance will help me a lot .

Thanks and regards ,
Hari

Hi

There are so many threads about options in this forum, so this really should not be a problem for you to find some which are in your interest. Check the once from this guy Ankur. If you are done with them and that's it for you, that will be fine. Other wise expand your search with specific topics you want to learn about.

Most option threads here are not much technical oriented, as an option is not a future which most know who trade them day by day in there specific markets.

Your plan to trade short options short before expiry is not a kids play or a play of traders with low knowledge of options and little capital. Margins to short options are very high and the risk involved in such trades can be very high under certain, occurring market circumstances. Your money and your live. Even most pros do not take such high risk trades as they do not trade short atm options in most cases. Trading short atm options needs knowledge about risk management and alternative option strategies to handle the involved risk. Never forget this and if you do not find clear answers about that in the threads from those guy which call him self Ankur, you know what you have to to. But as told: Your choice and your believes.

If you want to become a professional shorter, use time and distance with your shorted options to the actual future price. This is what is done from pros with bigger response to what they do and especially to how big there money in the back ground is. Even good hedges in India are not taken into account to lower the margins (at least in most cases and if so, only from people the broker accepts as an option trader which knows what he does and can prove). So be very clear about this before you try to become a shorter of options.

Take care and all the best