beginers option help

#1
Hai members , i have lot of doubts about options trading . Option Experts and Senior Members please help me to solve my doubts. I dont want to disturb you everyone in each thread to ask my doubts , so i started new thread please spare your valuble time for me. please consider my questions and reply me whenever you have time , what i need is options knowledge only so kindly tell me whenever you have time. Im just starting to know about options deep if any questions you think stupid pls dont mind it .

Thank you very much.

when using options greeks calculator

underlying price is spot mkt price
exercise price is option premium price

1.what to be filled in days to left expiry ? all the days or except holidays?
2.what to be filled in interest rates column?
3.what to be filled in volatality ?does the difference between last days spot price day high and low?

and delta is the relation between spot price movement and option premium movement

gamma is differnce between delta and price , why we to use gamma already we know delta . what is the use of this gamma , mere we can use delta only?

I would be very thankful to you if please explain with some examples ,how to use these greeks wisely in trades.I searched in web but some are difficult to understand for me thats why im asking here.

please help me to know these things . thank you very much.
 

nac

Well-Known Member
#2
1. Expiry date minus today (or from the day you want to calculate) including all days.
2. 10% (for calculation purpose)
3. Value is readily available in nseindia.com. It changes everyday and whenever price moves.

I don't know much about option greeks but they are basic. Google will do...
 

Mr.G

Well-Known Member
#3
Hai members , i have lot of doubts about options trading . Option Experts and Senior Members please help me to solve my doubts. I dont want to disturb you everyone in each thread to ask my doubts , so i started new thread please spare your valuble time for me. please consider my questions and reply me whenever you have time , what i need is options knowledge only so kindly tell me whenever you have time. Im just starting to know about options deep if any questions you think stupid pls dont mind it .

Thank you very much.

when using options greeks calculator

underlying price is spot mkt price
exercise price is option premium price

1.what to be filled in days to left expiry ? all the days or except holidays?
2.what to be filled in interest rates column?
3.what to be filled in volatality ?does the difference between last days spot price day high and low?

and delta is the relation between spot price movement and option premium movement

gamma is differnce between delta and price , why we to use gamma already we know delta . what is the use of this gamma , mere we can use delta only?

I would be very thankful to you if please explain with some examples ,how to use these greeks wisely in trades.I searched in web but some are difficult to understand for me thats why im asking here.

please help me to know these things . thank you very much.
Do you know how to trade cash?
 

Mr.G

Well-Known Member
#5
Mr.G sir, cant understand what u are asking ,are you critizing me?.anyhow, yes i do trades online myself. :confused:
I am not criticizing you at all. I encourage people to ask questions here and learn to their very best. The thing is that before we put a cannon in your hands we want to know if you know how to handle a gun. Because a loose cannon can destroy your account. If you dont know the meaning of cash in the stock market context then you clearly are a newbie. I suggest you attend driving school before trying to drive an F1 car. I have seen people blow up fortunes in options. That's why most traders suggest new or even intermediate traders to stay away from options.
 
#6
Mr.G sir,sorry i thought u are askn me first u know how trade cash. Yes im doing
equities from last year as u told not very much experinced to find max right calls made
some losses but all were at the very begining, now i do trades limited and minimized
losing chances or exit in a small profit. But i want to k.ow about options deep than cash
mkt. I know cash seg is the base but the high reward (risk) impulses me to do options.
I did some nifty optipns all were sucessfull, but some stock options trades in loss. But all
Trades in trial basis in small amt only. Thnk u sir.:rofl:
 

Mr.G

Well-Known Member
#7
Mr.G sir,sorry i thought u are askn me first u know how trade cash. Yes im doing
equities from last year as u told not very much experinced to find max right calls made
some losses but all were at the very begining, now i do trades limited and minimized
losing chances or exit in a small profit. But i want to k.ow about options deep than cash
mkt. I know cash seg is the base but the high reward (risk) impulses me to do options.
I did some nifty optipns all were sucessfull, but some stock options trades in loss. But all
Trades in trial basis in small amt only. Thnk u sir.:rofl:
Thats time will come but I suggest you don't go into risky territory before you have more than % years under your belt, after that you will be able to double your money after every 5 trades. Wait and gather experience. They dont give commands of battle cruisers to midshipmen do they?
 

DanPickUp

Well-Known Member
#9
Hello....Use options fogr hedging....For e.g.
Nifty futures is at 5755.....So buy 1 lot at current market price.....and 5700 call is at 108...so sell 1 lot at xurrent price.......so surely u will gain 50 points, if nifty able to sustain over 5700 till expiry........Its d safe strategy...If nifty goes bellow 5700, then sell nifty future and again buy when it comes back to 5700 level...
@Tushar158

That is a covered call with uncapped risk and capped reward. Calling it a safe strategy in front of a beginner or to a beginner or even to advanced traders is not really a clever thing to do so, as you not even explain how she/he has to set his stop losses, what to do when the stop loss is not filled and what to do when after the stop loss the market gets whipsaw and so on. Just telling with so little information that she/he surely will make 50 points is a bit out of a good recommendation.

If you are so sure about the 50 points, why not open a thread about it and lets see how people will praise you in the future about that. I mean: Each time you recommend a new trade and 50 points are guaranteed, wow, wow, you will be soon a star and have your foot prints made in stone in the trading hall of fame from TJ.

Take care and I really hope to see soon that thread from you, so TJ members can learn from you.

Good trading / DanPickUp
 

DanPickUp

Well-Known Member
#10
Hello friend...

Reason behind call it a safe strategy is dat very minimum risk is involved.....and i just give him an example.......I know u r right dat i have not them about stoploss....but in such kind of set ups stoploss is not possible....just as i said it earlier , we need to sell and buy the nifty future around strike price at which he/she sell dat option......have a nice time friend....
Such kind of trading is only for pros and not for beginners, as common sense for buying and selling the future regarding price action is needed. A tough game. :)

What about a thread about that strategy?
 

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