Options trading to beat the returns of traditional investment methods

[anildnr]

Far otm is just a concept now at least in banknifty. It takes one session these days to wipe out any naked far otm. So selling them would require good knowledge. Simple theta decay doesn't work anymore. Also it's been many weeks now since i have taken trades on Friday and Monday just like you stated. The real action starts in the afternoon session of Tuesday's when the tone of a week has been established.

Wat about premium decay in options especially on friday and that too nowadays.. ur observation please

 

[SarangSood]

Wat about premium decay in options especially on friday and that too nowadays.. ur observation please

There is a difference between decay and fall. These days premiums fall with vicious movements which don't allow to adjust the position on time resulting in increase in cost of adjustment. The premiums might fall where the index stops for a while but this cost is irrecoverable. An year back premiums used to decay over time with relatively less cost of adjustment. Such weeks used to come thrice a month atleast. Now it's almost 2 months since a premium decay month has come.

 

[anildnr]

There is a difference between decay and fall. These days premiums fall with vicious movements which don't allow to adjust the position on time resulting in increase in cost of adjustment. The premiums might fall where the index stops for a while but this cost is irrecoverable. An year back premiums used to decay over time with relatively less cost of adjustment. Such weeks used to come thrice a month atleast. Now it's almost 2 months since a premium decay month has come.

Yeah..I m.asking about buying ce n.pe on friday for intraday purpose on these high volatile days

 

[SarangSood]

Yeah..I m.asking about buying ce n.pe on friday for intraday purpose on these high volatile days

I'm not an expert in buying options. Whenever I've tried (countless times) I'm in constant fear of fall in premiums which doesn't allow me to think and act properly. It is like going against the flow of the river. Still people do it but don't know how successfully.

 

[anildnr]

Premiums are not erased that much especially calls ,considering the FM press conference at 5Pm. A bit over trading today and went into losses..but able to adjust my position with multiple times. Returns 0.5% on my capital.

 

[mohan.sic]

Difficult day to handle shorts...closed day with 2900 loss. Let's see tomorrow

Hi Anil
If you find time and comfort please post trades/ trade ideas with numbers ( even post market is good). Numbers will clarity on what we are learning and following. More people can open up for discussion.

All the best..

 

[mohan.sic]

One more thing..can anybody tell which platform is better to use fyers or zerodha mobile platforms?
Bcas in fyers today I feel like order placing and refreshing the window are taking much time.
In last 10 mins..it gave error like.." is application down"

For faster execution and easy order placement and checking status or order/trades in options don't depend on web applications. Software like Odin, NEst, any other such are preferred.

 

[anildnr]

Hi Anil
If you find time and comfort please post trades/ trade ideas with numbers ( even post market is good). Numbers will clarity on what we are learning and following. More people can open up for discussion.

All the best..

Yeah..can do it. But I feel it may create confusion and questions because sometimes we may take sudden decisions based on personal judgement and difficult to answer why we exactly did that.
For example today after 1 30 I bought both ce and pe because I felt strongly that premiums will not fall even though my basic rule is only to sell options.

 

[anildnr]

For faster execution and easy order placement and checking status or order/trades in options don't depend on web applications. Software like Odin, NEst, any other such are preferred.

As I am working person..I don't have access for web applications. So only mobile app is only option

 

[mohan.sic]

Yeah..can do it. But I feel it may create confusion and questions because sometimes we may take sudden decisions based on personal judgement and difficult to answer why we exactly did that.
For example today after 1 30 I bought both ce and pe because I felt strongly that premiums will not fall even though my basic rule is only to sell options.

Not real time. You can do it post market with a time stamp of the trade or trade idea.

Example:

Time: 2:09 pm
Trade: Short 27500 pe@68 & Short 28500 ce @ 74

TIme: 3:15 pm
Covered 27500 pe @ 65 & Covered 25800 ce @ 75

Use of time: If you can give appx time, user like me can connect to the charts, look at price levels of Index ( spot/future )at that time, and this whole picture of Spot/Ce/Pe will give insight for better understanding.