Option Spread Margins

#1
Hi,
Im an active options trader. I am yet to find a broker who is fair in charging option spread margins. I would like to know the experience of other option traders. Also a sub topic related to serious option spread trading would be great. Hoping for some good response :)

regards

Dilip
 
#2
Hello Again :)
surprising no one has replied to this thread yet! looks like very few serious option traders around. I would like to help out anyone interested in this fascinating field, where the relative returns are higher and safer( yes safer! ).
Hope to hear from more people soon.


Regards,

Dilip
 
#3
Hi,
Good to hear from an option trader, When most people tend to think options dont work. I trade about 85% in options.Only begining and endof the month, I am vary of taking options. Have seen profits in excess of 500%-1000% in options.It is the safest form of investing with high returns. dilip mail me will keep in touch.
Regards
Prashanth
 
#5
Hi dilip2k,and prashkr,
I m also a person who loves to trade in options,for its low input --high return ratio------Sorry---this thread skeeped my eyes-----Hope we can all be in touch with each other and be mutually benefitted---I m also in search of the same thing as u(Dilip2k) r in----Having talks with Sharekhan on this issue---Let me know what u think a fair rate in spread margins----email:[email protected]
Regards,
joy_mitali
 
#7
Hi
Sorry I didnt read the forum for a while. Nice to know ppl are realising the potential of options :), Anyone interested can ask me specific questions, i will try my best to help. Abt ICICIdirect for options trading i think their margins r too high , this was the main reason i started this thread. Option spreads r low risk trades but the margins charged make them unattractive. Also NSE doesnt clarify abt spread margins. It keeps harping abt SPAN ( which measure the naked option risk and has nothing to do with a spread where the risk is very clear). So guys check with ur brokers and let me know

Good luck with your trading

Dilip


ps my email is [email protected]
 
#8
Hi Mitali,

I used to trade with sharekhan, but they have a very arrogant and unfriendly attitude, which cost me money( they stopped option writing out of the blue ) and never had the courtest to inform clients before hand!!)

And as for option spread margins a 5 rupee gap which gives u a credit of 2 rupess should attract a margin of 3 time the markey lot. ie if its a 100 lot the spread for 100 and 105 should be 300Rs!! get the idea how favorable it is for traders?

But no broker(or NSE) appears to understand that or plays dumb and harps abt SPAN ;) , see if u can find an honest broker and let me know

regards

Dilip
 
#9
dilip2k said:
Hi
Sorry I didnt read the forum for a while. Nice to know ppl are realising the potential of options :), Anyone interested can ask me specific questions, i will try my best to help. Abt ICICIdirect for options trading i think their margins r too high , this was the main reason i started this thread. Option spreads r low risk trades but the margins charged make them unattractive. Also NSE doesnt clarify abt spread margins. It keeps harping abt SPAN ( which measure the naked option risk and has nothing to do with a spread where the risk is very clear). So guys check with ur brokers and let me know

Good luck with your trading

Dilip


ps my email is [email protected]
Hi Dilip2k
I am also new one to options trading which I am triying to understand. I would like to know with your experience at which strike price we should enter in Indian market? That is in any script there will be so many strikes quoted. Which one is more liquid? Which is more beneficial? As I have seen in the market many strikes are not traded at all. Please tell your experience in this matter.
gvnarendra
 
#10
Hi Narendra,
before you begin options read up some good introductory book on the theory. You dont have to remember all the mathematical terms ;) just an idea how it works. then try pick a few good stock you are familiar with whcih trade frequently in options. Finally you need a strategy and road map of what u expect with your trading.

Good luck

Dilip
 

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