In trading for unsual moves in Nitfty, I would like to draw the attention of our forum members that nifty options are of european types i.e.we cannot exercise it in the middle of the month as in case of stock options which are of american types.
Those members who were there in the market at the time of 17th May massacre would remember that when market started falling, trading in options got dried up.Those who had bought put options in stocks,exercised there options at the closing prices and booked the profits but nifty put buyers had to wait till the market recovered from the the lows and stabilised.
Last but not least, one must consider the brokerage part with service tax and STT while taking positions in options specially Butterfly i.e.buying at the money call and put and selling out of money call and put.
Those members who were there in the market at the time of 17th May massacre would remember that when market started falling, trading in options got dried up.Those who had bought put options in stocks,exercised there options at the closing prices and booked the profits but nifty put buyers had to wait till the market recovered from the the lows and stabilised.
Last but not least, one must consider the brokerage part with service tax and STT while taking positions in options specially Butterfly i.e.buying at the money call and put and selling out of money call and put.