Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
It is not easy, one need to do lots of research on what works and what not, how market dynamics changes and adaptation according to it. how hard money is hitting in market what kind of news are currently impacting. understanding volatility dynamics is also important there is no simple indicator to follow. just research and development which no one else has done even on PHD or scientists level, dont forget mathematician or other wise they will trade it and your chances decreases to trade those places. market is very quick to become efficient. i trade my psychology and experience there is no secrets. i cant transfer how my brain works.
my words might sound i am talking shit and it might not make sense because you have not seen from my view but it is my experience and knowledge that helps. i am not here to impress anyone, i am here just to see at how advance level you guys are in trading. i will appreciate if people wont believe me.
my words might sound i am talking shit and it might not make sense because you have not seen from my view but it is my experience and knowledge that helps. i am not here to impress anyone, i am here just to see at how advance level you guys are in trading. i will appreciate if people wont believe me.
Worth reading the article.
Who to blame etc etc aside but imagine holding a certain position when the opposing liquidity disappears and you cant square-off, in this it went into ITM expiry and there is no more DNE, since stocks had compulsory delivery introduced.
SEBI, NSE, BSE silent on systemic exploitation by options writers in Hindalco trade
SEBI, NSE, BSE silent on systemic exploitation by options writers in Hindalco trade (fortuneindia.com)
Who to blame etc etc aside but imagine holding a certain position when the opposing liquidity disappears and you cant square-off, in this it went into ITM expiry and there is no more DNE, since stocks had compulsory delivery introduced.
SEBI, NSE, BSE silent on systemic exploitation by options writers in Hindalco trade
SEBI, NSE, BSE silent on systemic exploitation by options writers in Hindalco trade (fortuneindia.com)
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Please excuse was ignorance on this subject. Seems I am not in touch with latest rules. I was under impression that ITM upto two strikes is cash settled.
Lets take an example to clarify my understanding.
In this specific case of Hindalco Put, lets say Mr. X is holding 450 PE. As he was finding it difficult to square off due to absence of buyers, could he avoid physical settlement by buying ITM Call (say 440 CE or a lower strike) for same expiry cycle? My understanding is that ITM PE and ITM CE, will set off physical settlement and net amount will be cash settled.
Request your inputs on the same. Thanks.
Lets take an example to clarify my understanding.
In this specific case of Hindalco Put, lets say Mr. X is holding 450 PE. As he was finding it difficult to square off due to absence of buyers, could he avoid physical settlement by buying ITM Call (say 440 CE or a lower strike) for same expiry cycle? My understanding is that ITM PE and ITM CE, will set off physical settlement and net amount will be cash settled.
Request your inputs on the same. Thanks.
^^ Yes travi sir... twitter had many aggrieved people posting this... a few youtube channels also highlighted this issue...
bkb sir... ctm ka dne abolish karne se hi toh ye sab locha hua hai... now there is absolutely no cash settlement anywhere on the option chain... And your option of offsetting same expiry spreads is there for all itms, not just ctm... but... but..
aapka diya hua solution bhi shayad na chale (unless you are a big fish like the OP and have brokers in your pocket
)... because 2 days prior to expiry many brokers don't allow fresh long positions...
bkb sir... ctm ka dne abolish karne se hi toh ye sab locha hua hai... now there is absolutely no cash settlement anywhere on the option chain... And your option of offsetting same expiry spreads is there for all itms, not just ctm... but... but..
aapka diya hua solution bhi shayad na chale (unless you are a big fish like the OP and have brokers in your pocket
)... because 2 days prior to expiry many brokers don't allow fresh long positions...@Dr. Jan Itor bhai has answered it spot on.
Firstly, the problem is DNE( Do-not-exercise ) was removed by circular in OCT-2021 but wasn't known mainstream. Even I didnt know usually i tend to "stay updated".
They say DNE was for STT trap, since there is no STT trap, no DNE. But DNE is actually the fundamental logic of an Options Contract. Buyer is not obliged.
Secondly, taking counter set-off position is possible but as quoted in above post, the buy side is usually blocked etc. Only way is to short Futures or short some counter position.
Now shorting means huge margin requirements, especially in the range of 50% during Expiry week.
So the buyer, hence termed small retailer, bought a few "gambling" lots is in no position to bring it especially in the last hour.
The whole synchronized or orchestrated method of ("sellers" in this case) one side disappearing will have future consequences too.
If the exit is in sync, then the same group could've hoarded the underlying too bcos all these guys would go to auction in short delivery.
Firstly, the problem is DNE( Do-not-exercise ) was removed by circular in OCT-2021 but wasn't known mainstream. Even I didnt know usually i tend to "stay updated".
They say DNE was for STT trap, since there is no STT trap, no DNE. But DNE is actually the fundamental logic of an Options Contract. Buyer is not obliged.
Secondly, taking counter set-off position is possible but as quoted in above post, the buy side is usually blocked etc. Only way is to short Futures or short some counter position.
Now shorting means huge margin requirements, especially in the range of 50% during Expiry week.
So the buyer, hence termed small retailer, bought a few "gambling" lots is in no position to bring it especially in the last hour.
The whole synchronized or orchestrated method of ("sellers" in this case) one side disappearing will have future consequences too.
If the exit is in sync, then the same group could've hoarded the underlying too bcos all these guys would go to auction in short delivery.
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