Question regarding Option Strategy

[agarwal29ster]

Hello,

I am a newbie to this. Not intending to get into option trading right away, still learning so I have a few questions.

1) On the expiry day, can't we do this: Buy Call of the a certain strike price, and Buy put of the very same strike price? Suppose one end up being 0.05 we will have limited loss, but the other one ends be being 5x
The total would be profit. No?

As an example. The BANK NIFTY Call of 25700 ended up at 0.0, but the Put ended up 1000%

2) Read on another post,
One way to minimize risk is to sell 10400PE and buy the 10200PE (you have a max. loss of 200pts)
if 200pts is too much, you can buy the 10300PE instead.

Can someone please explain how you'll end up with profit in this?

Thank you

 

[agarwal29ster]

A very good day to you too. Please re-read my post. Please tell me which sentence made you believe that I said "Going to make it big"?

You're generalizing without even reading my post. See the first line "Not intending to get into option trading right away, still learning so I have a few questions."

Who said I am to attempt doing options anyway? I was asking a question to which I expected someone to answer or find faults. Of course, we are here to learn and that is what I intend to do. LEARN.

Talking about profit and loss comes in later. There is no real money involved here.

Reading your post wastes peoples time, because it doesn't add any real value!