Looking for a mentor in option trading

doss186

Well-Known Member
Friends After extensive research in options I can tell you the following with certainity:

If Nifty is going up today and current price is around 8000 buy calls of 7500 or
short puts of 8500.

If Nifty is going down today current price is around 8000 buy puts of 8500 or
short calls of 7500.

Just try this and see the results..
 

Rish

Well-Known Member
Friends After extensive research in options I can tell you the following with certainity:

If Nifty is going up today and current price is around 8000 buy calls of 7500 or
short puts of 8500.

If Nifty is going down today current price is around 8000 buy puts of 8500 or
short calls of 7500.

Just try this and see the results..
What is the message......and what is the extensive research in this....?
 

doss186

Well-Known Member
I mean to say in terms of trading range. Calls above the current market price have very low trading range and for 100 point up move will move only 5% to 10% whereas calls below 500 points of current market price will move around 40% to 60%. The same is true for down move.
 
If Nifty is going up today and current price is around 8000 buy calls of 7500 or
short puts of 8500.
There is no sense in buying an option which is 500 points ITM because of the wide spread on entry and exit. An equivalent position can be constructed using other strikes.
 

Rish

Well-Known Member
I mean to say in terms of trading range. Calls above the current market price have very low trading range and for 100 point up move will move only 5% to 10% whereas calls below 500 points of current market price will move around 40% to 60%. The same is true for down move.
There is no logic and no sense at all..

It is almost equivalent to trading in Nifty Future....almost move one to one...go and check....

This is not at all a strategy.....
 

doss186

Well-Known Member
I have spent some time to explain my idea. find attached two anlysis of options buying and shorting. Just analyse in terms of trading range and not in net % change.
 
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Rish

Well-Known Member
Shorting options will give you more profit than shorting futures, as options melt like icecreame in hot sun, in opposite directions.
All ok.....

The problem is identifying the trend....

What you are talking end result.....what I am asking, what is the trading logic....entry ?....
 

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