Increase in premiums of both CALL and PUTS in Infosys

anup

Well-Known Member
#21
Anup is just kidding with words like god... I am also just learning. But the INFY observation was superb. So I am waiting for 10-Oct-13, to replicate my Jul-13 story on INFY.
You are too humble and modest..But you are worthy of a praise...

@ Aapaji: Hope to see you in Rajs option thread...some amazing discussions are going on....

Raj we will track infy pair daily on your thread....
 
#22
You are too humble and modest..But you are worthy of a praise...

@ Aapaji: Hope to see you in Rajs option thread...some amazing discussions are going on....

Raj we will track infy pair daily on your thread....
yes anup bhai..I follow Raj bhai thread continuously...He is amazing...
I want to know that how many years of experience made him as now he is..
 

ananths

Well-Known Member
#23
The god of options has arrived in this thread... Over to Raj, for any queries regarding options....
@ Appaji : please visit Rajs thread on options. You will come to know everything...I have learnt a lot from him...Thanks Raj bhai
Friends,

I second that...Raj bhai is the person for options...
He has tremendous knowledge about this ocean called options!

I was a small fish before joining TJ. I learnt a lot from DanPickup's thread and AW10's (currently not active i guess) thread.

It needs lot of patience and enthu to become an expert...I'm still learning..but I want to become a King one day! like Raj and Dan :thumb:

Another expert is there among us (pakatil) he keeps bit low profile but I learnt few tricks from him too..

From my experience, what usually a novice trader does is looks for holy grail and each and every way to earn maximum returns and on the way he loses the capital....first and foremost thing to keep in mind is money management. Then look for the method which is suitable for you..in my case its difficult to monitor the market during market hours..some times i do not even see the screen for entire day. So I chose Debit spread or Credit spread.(bull call/put spread)
Main criteria for selecting the strike prices are based on direction of the market, IV & OI. If you study these three things properly and able to analyse, you are ready for options market otherwise better to stay away!

This time will not miss INFY guys...let us test our knowledge and luck! :thumb:
 

TraderRavi

Gayi Bhains Pani Mein
#24
INFY Q result 11 jan 2013 :

infy future close price on 10th jan was 2330. lets assume you wrote 2500 CE @ 21 and 2100 PE @ 12, total points credit = 33

on 11th infy future close price was 2716. 2500 CE @ 221 , 2100 PE @ 1, total points = 222

=> option writers shocked, straddle buyers rocked :lol:

I got fried that day as my 2250 PE reduced from 47 to 2 :mad:
 

TraderRavi

Gayi Bhains Pani Mein
#25
INFY Q result 12 APRIL 2013 :

infy future close price on 11th april was 2916. lets assume you wrote 3200 CE @ 31 and 2600 PE @ 35, total points credit = 66

on 12th infy future close price was 2307. 3200 CE @ 1 , 2600 PE @ 298, total points = 299

=> option writers shocked, straddle buyers rocked :lol:
 
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TraderRavi

Gayi Bhains Pani Mein
#26
INFY Q result 12 JULY 2013 :

now here option premiums were too much high due to IV, even 500 strike OTM were very costly.

infy future close price on 11th july was 2534. lets assume you wrote 3000 CE @ 33 and 2000 PE @ 23, total points credit = 56

on 12th infy future close price was 2810. 3000 CE @ 8 , 2000 PE @ 1, total points = 9

=> option writers rocked , straddle buyers shocked :lol:
 

ananths

Well-Known Member
#28
so if option premiums are too high , dont buy straddle , writing OTM options is better, otherwise straddle is better..........
Exactly..you got it right.
Sell options when IV is high and buy when IV is low.

In all the above analysis, you did not mention about the IV on those days.

Infy is giving more than 15% movement on the day of result. This is because of vola. Option buyers will be killed after the result. At the same time Option writers have high risk..So need to be careful in choosing the strike price...at least 15% or more OTM strike prices would be better.
However even if market moves one direction 15%, since the IV will be dropped significantly, the options will not gain much also you have the benefit of full profit from the other side. :thumb:
 

TraderRavi

Gayi Bhains Pani Mein
#29
Exactly..you got it right.
Sell options when IV is high and buy when IV is low.

In all the above analysis, you did not mention about the IV on those days.

Infy is giving more than 15% movement on the day of result. This is because of vola. Option buyers will be killed after the result. At the same time Option writers have high risk..So need to be careful in choosing the strike price...at least 15% or more OTM strike prices would be better.
However even if market moves one direction 15%, since the IV will be dropped significantly, the options will not gain much also you have the benefit of full profit from the other side. :thumb:
IV is not available in bhavcopy, how to know its value for past dates :confused:
 

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