This months nifty options are weird !

[Somatung]

How many traders will be like this

Those womans are not the traders. This are only the wifes from the retail traders who watch now how there lovers try to play this game on the back of the big players:

:clapping: Brave mens.

 

[mlp]

I have a feeling... but its highly implausible... not going to happen...
but lets try this scenario and see if my anti crowd instincts work well
----
by definition crowd should lose...

if every one is gearing up with straddles and strangles... I think huge volatile moves will be curbed and market is going to be flat and range bound... making all the option holding crowd losers, eating up all the premiums! some big bad ass big market makers are going to deploy huge delta neutral strategies and make the market price pin around 6800

well... market entering into range on election results...
everyone is thinking about upper circuit and lower circuit... I must be crazy right?

I don't know just a thought experiment and lets come back to this thread after results!

mean while hope everyone is having good times!

Thanks for enlightenning. What You suggest Dear. Should we bet on June in place of May?

 

[sam_kuw]

i wish if its always like today, bcos option sellers get this kind of favour most of the time.

Yeah the sellers gain always, like last month when 24th was declared a holiday. It was unfair to the buyers. I thought the people who control these things made decisions after considering all factors.

 

[onlinegtrash]

Thanks for enlightenning. What You suggest Dear. Should we bet on June in place of May?

no idea... except that don't put 100% money in one direction bet in a single trade!

 

[aditya14]

Its better to not trade as this month options are not behaving as per norms.IV shot up but back month options gained less than current month.Go figure.....

 

[aditya14]

Best thing to do is make position after 16th as IV won`t crash as much

 

[ramesh2020]

It is better to trade after 25 th May or after expiry

 

[onlinegtrash]

Best thing to do is make position after 16th as IV won`t crash as much

It is better to trade after 25 th May or after expiry

greatest opportunity comes once in a while with great risk...
simply staying away, every time when awesome things happen may not be a mark of great traders...

So... am in the game but with keen eye on risk management, even if one loses this month say 5-10% of his capital after making a honest attempt to tame the beast... I think its great!

Ofcourse market is not a place to show your bravado and prove yourself, so staying safe is also a good idea, better stay safe if the stormy waters are bigger than ship and captain!
Staying alive is always better than getting hit and dead!

 

[toughard]

for risky free structures all months are same...
actually this month is high yielding due to high IV's...
Parity and miss price are favorable:thumb:

 

[augubhai]

just saw this thread. here's my take on the current situation, viewed thru' indiavix futures...

So, on Wednesday, we came across a hurdle more tougher than the 2 mentioned earlier.

The new hurdle: The futures price actually tries to reflect the expected expiry value!! This behavior is different from what we see in Index and Stock futures. In Index and Stocks, the underlying** is used to smoothen out the spreads between different futures - so much that the futures price actually reflects the current underlying price with a premium/discount. But Wednesday's Volatility futures were actually ignoring the current price and trying to reflect the price at expiry with contango/backwardation. This makes rollover difficult (actually makes it impossible in the current case, but I think that the current scenario is an exception). And there is no simple underlying that can be used. The indirect way is to short May OTM options, which is not something that I plan to do at this stage... and I guess that the R:R for that strategy is too tricky even for the big players, else we would not have such a big drop from W2 to W3 (just my opinion)

**Underlying for index is the stock basket that is played by institutional investor. We small players don't matter.