Buying Option & Carrying Option is kind of Slow Poison

Buying Option & Carrying Option is kind of Slow Poison?


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#24
When buying Options you cannot afford to waste your gammas. By trading the gamma, buyers can try to bring down the cost of Options...
The following link gives an idea about gamma: http://www.optiontradingpedia.com/options_gamma.htm

Could you kindly explain in different ways how to reduce the cost of options when trading Nifty or Bank Nifty options? What strategies do exist do reduce the cost of such options?
 
#25
The following link gives an idea about gamma: http://www.optiontradingpedia.com/options_gamma.htm

Could you kindly explain in different ways how to reduce the cost of options when trading Nifty or Bank Nifty options? What strategies do exist do reduce the cost of such options?
the following link gives a brief about gamma trading.

http://www.scribd.com/doc/17280376/Scalping-Option-Gammas

gamma trading can be done with all bought Options (nifty, banknifty etc). Please study the link and post your doubts ...and I'll try to clarify...
 
#28
the following link gives a brief about gamma trading.

http://www.scribd.com/doc/17280376/Scalping-Option-Gammas

gamma trading can be done with all bought Options (nifty, banknifty etc). Please study the link and post your doubts ...and I'll try to clarify...
@Long_gamma

I went through the article posted in the link you showed. A little gem :thumb: Love it. Still: My question how to do gamma scalping with options on options in Nifty and Banknifty is not answered. As I only asked for a strategy, but not mentioned those thoughts, you could not know that I meant it those way. The article gives information about a long straddle and then a future play to neutralize the delta, but no information is given about any way of trading which only includes only pure option gamma scalping without the future. Could you kindly make a post about that specific kind of trading in India?
 
#29
@Long_gamma

I went through the article posted in the link you showed. A little gem :thumb: Love it. Still: My question how to do gamma scalping with options on options in Nifty and Banknifty is not answered. As I only asked for a strategy, but not mentioned those thoughts, you could not know that I meant it those way. The article gives information about a long straddle and then a future play to neutralize the delta, but no information is given about any way of trading which only includes only pure option gamma scalping without the future. Could you kindly make a post about that specific kind of trading in India?
yes sir, you can use Options deltas instead of futures deltas to trade the gamma. When using Option deltas, the change in other sensitivities (greeks) will also have to be considered. (I tried writing a nifty trade example but it did not turn out well...I am still at it)
 
#30
yes sir, you can use Options deltas instead of futures deltas to trade the gamma. When using Option deltas, the change in other sensitivities (greeks) will also have to be considered. (I tried writing a nifty trade example but it did not turn out well...I am still at it)
Any news on this example as now 10 days have past since you made this post?
 
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