velu Posted July 24, 2016 Posted July 24, 2016 Options trading is probably least volatile. Losses can easily be limited Sent from my Wileyfox Swift using Tapatalk Premium is extremely volatile.. Since no daily settlement in options unlike futures, most feel its less volatile
G_B_ Posted July 24, 2016 Author Posted July 24, 2016 Premium is extremely volatile.. Since no daily settlement in options unlike futures, most feel its less volatile Yeah but u get forwards and futures wrong u are in deep shit Sent from my Wileyfox Swift using Tapatalk
velu Posted July 24, 2016 Posted July 24, 2016 7 minutes ago, G_B_ said: Yeah but u get forwards and futures wrong u are in deep shit Sent from my Wileyfox Swift using Tapatalk there is some safety net in option shorting .. before and after an event , vix will be high and so does the option premium but once the event cools down , vix and option price will drop ( not considering the price movement ) in options too margins will increase based on how close your option is to the strike .. brokers will cover our postions automatically SEBI will charge fine if the client dont maintain the span margin and i guess they fine the brokers heavily if the allow the client to do it
randomGuy Posted July 25, 2016 Posted July 25, 2016 Satin satin satin, pls dont go up so fast. You are abt to become a 2 bagger in 2-3 months for me if u go up 10% more and I might have to sell u, i dont want to!
velu Posted July 25, 2016 Posted July 25, 2016 axis bank gave poor result .. looks like even private bank recovery needs time vedl and cairn again started cooking
randomGuy Posted July 25, 2016 Posted July 25, 2016 GB, Velu, Sunny, Any opinions on crude oil price?
velu Posted July 25, 2016 Posted July 25, 2016 1 minute ago, randomGuy said: GB, Velu, Sunny, Any opinions on crude oil price? wrong guys .. i did commodity ( bullion and base metals ) long long ago and i didnt like to follow the mkts 24*7
randomGuy Posted July 25, 2016 Posted July 25, 2016 10 minutes ago, velu said: wrong guys .. i did commodity ( bullion and base metals ) long long ago and i didnt like to follow the mkts 24*7 ok. I wasnt asking for commodity trading but for variety of other reasons.
velu Posted July 26, 2016 Posted July 26, 2016 canara bank gave better than expected results and its up.. only 2 more days are there for expiry , but the option premiums are unusually high considering no news flow is there for the next 2 days related to it
randomGuy Posted July 26, 2016 Posted July 26, 2016 6 minutes ago, velu said: canara bank gave better than expected results and its up.. only 2 more days are there for expiry , but the option premiums are unusually high considering no news flow is there for the next 2 days related to it Futures price: 263 Call Option premium at 265 : 5.5 Spot price: 263 There is an arbitrage. should one short 265 call option and go long on Futures?
velu Posted July 26, 2016 Posted July 26, 2016 Just now, randomGuy said: Futures price: 263 Call Option premium at 265 : 5.5 Spot price: 263 There is an arbitrage. should one short 265 call option and go long on Futures? nah.. what if canbk goes to 250 .. no arbitrage here if long future and long put gives net +ve , then its arbitrage .. or short future and long call i meant 265 call be ideally trading at 2.5rs , but its 5 odd rupees now 240 put shpuld be trading for 0.3rs kind , but its at 0.75 now i am tracking this bcoz it came up with its result yesterday randomGuy 1
randomGuy Posted July 26, 2016 Posted July 26, 2016 Option writing strategy - http://ftp.motilaloswal.com/emailer/Marketdiary/OptionWriter/OptionWriter26thJuly2016.pdf
velu Posted July 26, 2016 Posted July 26, 2016 1 hour ago, randomGuy said: Option writing strategy - http://ftp.motilaloswal.com/emailer/Marketdiary/OptionWriter/OptionWriter26thJuly2016.pdf looks like they just gave short strangle on little liquid stocks .. risk to reward is not in favor and considering premiums are very , shorting options is unnecessary risk.. the guy who prepared this is a novice ( some of the results are about to come in the next days on or b4 expiry ).. for ex:- previous expiry ashok leyland moved from 97 to 105 on the expiry day ..
velu Posted July 26, 2016 Posted July 26, 2016 @Malcolm Merlyn Asian Paints will be declaring their results today ( after 2.30 )
Malcolm Merlyn Posted July 26, 2016 Posted July 26, 2016 2 hours ago, velu said: @Malcolm Merlyn Asian Paints will be declaring their results today ( after 2.30 ) as long as the stock is above 850 levels i am profitable as i am holding it for long.The stock is at 1060 levels now.
randomGuy Posted July 27, 2016 Posted July 27, 2016 7 hours ago, velu said: looks like they just gave short strangle on little liquid stocks .. risk to reward is not in favor and considering premiums are very , shorting options is unnecessary risk.. the guy who prepared this is a novice ( some of the results are about to come in the next days on or b4 expiry ).. for ex:- previous expiry ashok leyland moved from 97 to 105 on the expiry day .. Right. Even for dr reddy, very bad results... could easily slip below 3200. Yet he has suggested to short 3200 put. Plus the suggestions on illiquid counters and volatile counters. But still it is good to see the suggestions(, of course we must not enter any trade without properly evaluating) .
velu Posted July 27, 2016 Posted July 27, 2016 Right. Even for dr reddy, very bad results... could easily slip below 3200. Yet he has suggested to short 3200 put. Plus the suggestions on illiquid counters and volatile counters. But still it is good to see the suggestions(, of course we must not enter any trade without properly evaluating) . Dr.Reddy at 3000 now I think the report just gives what to short. Like short calls n puts of the same scripts are different calls. They just gave how much returns it will give if we short . I have no doubt that whoever prepared the list never done any trading in options.
velu Posted July 27, 2016 Posted July 27, 2016 Another thing to note here is that we cant short at the levels they mentioned bcoz of time decay. Canbk 240 put sell at 0.85 .. But highest price for today is 0.4 randomGuy 1
randomGuy Posted July 27, 2016 Posted July 27, 2016 38 minutes ago, velu said: Dr.Reddy at 3000 now I think the report just gives what to short. Like short calls n puts of the same scripts are different calls. They just gave how much returns it will give if we short . I have no doubt that whoever prepared the list never done any trading in options. and he suggests '90% confidence level' as written in the report. Lol. Anyhow, congratulations to me, Satin has become a 2 bagger+ in 2-3 months. still holding...will maybe sell or maybe not. i like this stock alot. Arman is the big bet though. velu 1
velu Posted July 27, 2016 Posted July 27, 2016 i shorted canbk 240 put .. i want to cover it for 0.1 or max 0.2 .. but the spread now is huge bcoz of poor liquidity randomGuy 1
Recommended Posts