Intraday trading with options?

sridhga

Well-Known Member
#4
Trading in deep ITM Index options is similar to trading in futures because of sufficient liquidity and similar delta.

I do trade in options and may sometimes close positions intraday. But intraday trading is not my goal. Why are you specific about intra day? Are you worried about overnight risks? What do you want to know about intraday option trading?
 
#5
The main reason is overnight risk and I want to avoid it. Do we have to pay the full premium for options in intraday trading say for 75 qty with 10rs premium the full premium is 750 rs. Do we have to pay this full premium for intraday?
 

DanPSup

Hedge Strategy Trader in Options and Futures
#10
Whatever you trade don't trade margins
May I do not get your point. Do you mean: Do not trade on margins, means I use all my money in the trading account on margins to take the highest risk and as many future contract or short options I can.

Or do you mean not to use margins in trading attoll?

If you meant the second point then I highly must disagree with you. Depending on the broker and in what place you trade, margins in option and specific hedge trading is most common and absolute normal. Most simple example: Put or Call credit spreads which reduce the margin needs in the trading account. Of course, not all broker offer this, so you have to talk with your broker about this specific point as you talk with your broker when you want lower turn around cost when you trade higher volumes.
 

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