The Nifty Trading Lounge

Taurus1

Well-Known Member
Long in Nifty Apr calls. :cool:
Tomorrow I'm expecting a volatility spike, aka big gap, hence my entry via calls.
If the gap is down, the volat spike will jack up the prices of all options and offset the call price loss. :p
If the gap is up then


High time the mutual fund boyz got into the act and started propping up their quarterly NAVs.
 

MurAtt

Well-Known Member
Tomorrow I'm expecting a volatility spike, aka big gap, hence my entry via calls.
If the gap is down, the volat spike will jack up the prices of all options and offset the call price loss. :p
If the gap is up then


High time the mutual fund boyz got into the act and started propping up their quarterly NAVs.
Annual :D

BUT if the gap is down then .... how will the loss be offsetted ? The price of the calls u bot will move down. Simple. QED
 

Taurus1

Well-Known Member
Annual :D

BUT if the gap is down then .... how will the loss be offsetted ? The price of the calls u bot will move down. Simple. QED
The price loss cannot be fully offset with a gap down but all options, puts and calls will increase by at least 10%. :D
 

Taurus1

Well-Known Member
 

Taurus1

Well-Known Member
Guest appearance from SM only on bulldayz.
 

Taurus1

Well-Known Member
......
......


Tomorrow gap up and runnnn ..................... :p :D
Ok, the runnn bit came but wot about the volatility spike??

As of March 20th the Nifty has entered a high volatility zone upto Apr 25th.
 

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