Low Risk Options Trading Strategy - Option Spreads

[anuragmunjal]

Sorry i might be jumping wrong guns here , but if you need to profit from short positions you can sell future ..

Now the issue is with hedge ratios as future will be in lots for e.g. 1000 but you just need to short say 385 stocks , there might be be some brokers who could be willing to do stock lending by charging some premium .

If anyone happens to know such broker kindly share it ..

Cheers

hi..

if investment is not an issue , u can acheive the same by buying 615 shares in the cash mkt. and selling one lot in futures.

regards

Anurag

 

[optionguru]

The biggest issues on NSE are Liquidity + Hedge Ratios, having said that there is still lots of money to be made using options

As NIFTY F&O is pretty liquid and ATM calls are picking up volumes atleast for nifty stocks ,

while taking spreads deep OTM /ITM calls use proper judgement on fair value or they might be just indicators of some big market movement

 

[optionguru]

hi..

if investment is not an issue , u can acheive the same by buying 615 shares in the cash mkt. and selling one lot in futures.

regards

Anurag

Many thanks Anurag, but would be really expensive ( in terms of brokerage etc ) would prefer if some broker who does this and charges a small premium for this service.

 

[cool_kk]

Hi

So far, I put/call only Nifty option only.
Is there any other option which is also liquid as NIFTY.
What is MNIFTY ?

Thanks

 

[sumitdasjoshi]

is every stock future cantain 1000 share or this change in difrent stock .

 

[rajeabc]

is every stock future cantain 1000 share or this change in difrent stock .

Its depend . Total value of lot is fixed around 3-4 lakhs.. so if it is SBI then it has 125 shares lot , RCOM-2000 , DLF -1000.

 

[Talon]

AW10,
SEBI limits exposure margin to 5% for derivatives from july 15, what do you think will be effect on markets.
-Talon

 

[blackberry]

Sorry for interruption.I am new to option trading.Please any one explain
what is ITM ATM OTM for call and put trade.Which strike price to choose and why?


AW10 sir,your posts are treasure for newbie like me.Great work sir.After reading some pages I am confused.Now I am paused for some days.

 

[darkstar]

i wanna know , can any one tell me.Is future is more liquid or nse cash ? ex sesa goa is listed in future . 1 lot of sesa goa is 1500 shrs if some one wanna 3,4 lots or more for intra-day which one is more liquidity nse cash or future . which one of you prefer for intraday trade for huge some of trading.
thanks .
this question is for all senior member

 

[Subhadip]

can i ask MR AW10 which platform do u use..which broker do u trade with